Gold prices initially dropped as confidence grew after Colombia agreed to accept more immigrants, avoiding the threat of a 25% tariff from the Trump administration.
Later, concerns arose that a new AI model from the Chinese startup DeepSeek could threaten U.S. companies, causing U.S. long-term interest rates to fall. This led gold prices to recover.
However, during the New York market session, the Dow turned positive, reducing the excessive risk-off sentiment. As a result, gold, which performs well in riskier situations, declined again.
Gold had risen to the same high level as on October 30 last year but then turned downward. This shift has triggered short-term selling pressure.
Ahead of this week’s FOMC meeting, adjustments and selling are expected to occur. President Trump has mentioned that if OPEC lowers oil prices, he may ask the Federal Reserve (FRB) to cut interest rates.
The upward channel for gold remains intact. If the Federal Reserve actually lowers rates, it might be the moment when gold prices start to rise again.
Gold-Dollar Forecast Range: 2760–2710
Note: The above is not a guarantee of profit. Make your own decisions when trading.