Gold, which had dropped significantly the previous day, rebounded yesterday. The dollar initially strengthened due to the “Trump rally,” but as the FOMC meeting approached, the dollar saw increased selling, which led gold to recover as well. Additionally, a decline in long-term interest rates supported gold’s rise, reaching $2,710. With gold moving above the lower boundary of its upward trend channel, it appears to be showing continued solid support.
At the FOMC meeting, the expected 0.25% rate cut was implemented. Although it was thought that fiscal policies under the Trump administration might slow down further rate cuts, Fed Chair Powell did not suggest a halt to future cuts, which led to a decrease in interest rates and encouraged buying in gold.
Since the Trump administration officially begins in January next year, it is unlikely to weigh heavily on gold prices at this point. On the other hand, with geopolitical risks still present, gold is expected to maintain a steady upward trend for the time being.
Gold-Dollar Forecast Range: $2,730 – $2,690
Please note: The above information does not guarantee profits. Make investment decisions based on your own judgment.