Yesterday during Tokyo trading hours, there was news that the U.S. and the U.K. were close to reaching a trade agreement. This news made people feel more confident about the market, so many investors sold gold, causing its price to fall more.
Also, President Trump mentioned that there is a chance the U.S. might lower tariffs in upcoming talks with China. He also said, “You should buy stocks,” which helped stock prices go up. This created a “risk-on” mood, meaning investors were more willing to take risks, and that made gold prices fall even more. As a result, gold has dropped for two days in a row.
However, the European Commission warned that if trade talks with the U.S. fail, they might add new tariffs worth 95 billion euros. This shows that the situation is still uncertain.
President Trump also criticized Federal Reserve Chairman Powell, calling him “very slow” and saying “he is stupid and doesn’t understand anything.” If pressure to lower interest rates continues, this could help support gold prices in the future.
Right now, gold might have formed a “double top” pattern, which often means prices could fall more. If the price goes clearly below the 3,200 level (neckline), selling may become even stronger, so investors should be careful.
Gold-Dollar Forecast Range: 3,270 – 3,370
Note: This information does not guarantee profits. Please make your own decisions when trading.