Gold prices went up at first because the U.S. and Europe reached an agreement about tariffs, just like the U.S. and Japan had done earlier. This made people sell the U.S. dollar and buy the euro, which also led to buying gold.
However, when people felt safe because a trade war was avoided, they stopped buying gold. As a result, gold prices started going down and have now fallen for four days in a row. This drop has canceled out almost all the price increases from the middle of last week.
Now, before the FOMC meeting starting tomorrow, it seems many traders are holding fewer positions (less trading).
At the FOMC meeting, if the feeling of uncertainty becomes weaker, it is likely that the U.S. will move toward lowering interest rates again. If this happens as expected, people may start buying gold again, because gold doesn’t earn interest, and lower interest rates make gold more attractive.
Gold-Dollar Price Range Forecast: 3,290 – 3,350 USD
Note: This information does not guarantee profits. Please make your own decisions when trading.