Last week, on the 20th, the Trump administration officially started. On that day, the expected tariffs on imported goods were not implemented, which eased market concerns. As a result, U.S. long-term interest rates fell, and gold prices started to rise.
Later, there were reports that President Trump was considering imposing a 25% tariff on goods from Mexico and Canada. This caused some fluctuations, and gold prices temporarily went down.
President Trump also stated, “I plan to request an immediate interest rate cut.” This caused interest rates to drop, and gold prices rose again.
However, when he mentioned that he wanted to avoid imposing tariffs on China, gold prices briefly fell. Even so, buying interest in gold remained strong, and prices climbed to $2,785, approaching the high of $2,790 reached at the end of October last year.
This week, the important FOMC meeting will take place. It is expected that the policy interest rate will remain unchanged.
Even if President Trump puts pressure to cut rates, it is unlikely to change this decision. Therefore, gold prices are expected to be pushed back around $2,790.
However, if Trump makes further comments about cutting rates, interest rates may drop again, and gold could break through $2,790.
It seems the “Trump rally” is likely to continue for now.
This week’s gold-dollar price forecast: $2,790–$2,735
Note: The above information does not guarantee profits. Please make your own decisions when trading.