Last week, the U.S. and Japan reached an agreement on tariffs. This made investors feel safe, so they sold gold, which is usually bought when people feel uncertain. As a result, the price of gold kept going down. Gold could not break above its April high of 3,499 in May, June, or July, and it fell back before reaching that level. Recently, the price formed a “double top” near 3,400, and the 3,245 level is now seen as strong support.
This week, there will be a meeting of the U.S. central bank (FOMC). Many people believe the bank will show a positive attitude toward cutting interest rates. If interest rates go down, gold (which does not earn interest) may go up in price.
Also, if the central bank cuts rates, some people may think it is giving in to pressure from President Trump. This could raise worries about the bank’s independence, and people may buy more gold again to avoid risk.
In any case, the upward trend of gold is still continuing. So, when the price drops a lot, it might be a good time to buy.
Expected price range for gold this week: 3,345 – 3,390 USD
Note: This information does not guarantee profits. Please make your own decisions when trading.