Gold prices have remained strong due to reports that China has resumed buying gold. The price rose to $2,725, which is nearly the same level as the high of $2,721 reached on November 25. However, it failed to clearly break above this level and then lost momentum.
Afterward, U.S. long-term interest rates increased, pushing gold prices back down to around the mid-$2,600 range by the close.
There was also news last weekend that former U.S. President Trump might consider airstrikes on Iran. This geopolitical risk is still lingering, which helps limit how much gold prices can fall.
This week, the FOMC (Federal Reserve) meeting will take place. If U.S. interest rates rise due to expectations of slower rate cuts next year, it may limit the upward movement of gold prices.
In the end, it’s difficult to determine a clear direction for the market.
For now, gold is expected to continue trading in a range between $2,600 and $2,700.
This week’s gold-dollar forecast range: $2,600–$2,700
Note: The above information does not guarantee profits. Please make your own decisions when trading.