At the Jackson Hole meeting last weekend, Chairman Powell’s speech was seen as soft, which increased expectations that the Federal Reserve will cut interest rates. Because of this, U.S. long-term interest rates went down, and investors bought gold, which does not pay interest.
The chance of a rate cut at the September Fed meeting has risen to almost 90%. This means the U.S. dollar may keep getting weaker, and gold is expected to stay strong this week.
At the same time, peace talks in Ukraine are not moving forward, and the fighting is getting worse. This higher geopolitical risk also supports gold.
However, the 3440 level is a strong resistance point where gold prices have often stopped rising in the past. It may be better to take profits before this level.
This week’s forecast range for gold vs. dollar: 3,310 – 3,410 USD
Note: This information does not guarantee profits. Please make your own decisions when trading.