Gold prices dropped at the beginning of the week because there was big progress in US-China trade talks last weekend. Gold fell quickly from 3330 to around 3270.
After the Tokyo market closed, news came out that both the US and China would cut tariffs by 115%. This was a surprise and positive news for the market. The US dollar became stronger, and gold fell further to 3208. After that, gold went up a little, but the price stayed low.
This tariff cut will only last for 90 days. Also, talks with the EU and Japan are still going on, so not all problems are solved yet.
There will be a US-China leaders’ meeting at the end of this week. Until then, the market may still react to this positive surprise, but gold might not go up much.
Gold-Dollar Expected Price Range: 3290 – 3210
Please note: This is not a guarantee of profit. Make your own decisions when trading.