Gold prices went up because of increased geopolitical risk. This happened as people became more worried that Israel might attack Iran. When there is risk like this, investors buy gold because it is seen as a safe asset.
Also, the U.S. Producer Price Index (PPI) for May, which was announced on this day, was lower than expected. This was similar to the Consumer Price Index (CPI) result the day before. Because of this, fears about inflation caused by tariffs became smaller, and U.S. long-term interest rates went down.
Gold does not pay interest, so when interest rates fall, gold becomes more attractive.
The risk in the Middle East and the falling interest rates may continue, so the buying of gold could go on for a while.
For now, the recent high of 3,403 on June 5 is the level to watch. If the price goes above this level, the next target is around the high of 3,440 seen on May 7.
Expected range for Gold/US Dollar: 3,440 – 3,360
Note: This information does not guarantee profits. Please make your own decisions when trading.