Moody’s lowered the credit rating of the United States from AAA to AA1. Because of this, people started selling US dollars at the beginning of the week. Gold prices also rose quickly to around 3,250.
In the European market, the US dollar kept falling, and gold prices stayed high. But in the New York market, prices did not go much higher because the earlier movement was too fast and strong.
Other rating companies had already lowered the US credit rating before, and the market already knew about the worries over the US government’s financial situation. So this reaction might be a bit too much. Still, since people are feeling unsure, gold prices may stay strong for a while.
Expected Gold vs Dollar Range: 3,210 – 3,280
Note: This information does not guarantee profit. Please make your own decisions when trading.