Gold prices had been falling after reports that there would be no tariffs on gold bars. However, prices turned upward. This happened because the U.S. July CPI (Consumer Price Index) was lower than expected. Many believe this will not affect the Federal Reserve’s plan for early interest rate cuts, so investors bought gold, which does not earn interest.
In addition, President Trump said he is considering suing Federal Reserve Chairman Powell over the recovery of the Fed’s headquarters. Also, Mr. Antony, nominated as the next head of the BLS (Bureau of Labor Statistics), suggested stopping the release of monthly employment data. These actions created worries that the U.S. credibility might weaken, which pushed gold buying even higher.
From a technical point of view, the recent sharp fall in gold since last weekend is only starting to recover. The next target for the price is around 3,370, which is halfway back from the drop.
Expected Gold/Dollar Range: 3,330 – 3,370 (50%)
Note: This information does not guarantee profits. Please make your own decisions when trading.