U.S. Treasury Secretary Besent said yesterday’s trade talks with China were productive and satisfactory. However, he also said that extending the deadline would be up to President Trump. Although the U.S. has reached agreements with Japan and Europe, there are still concerns about the talks with China. This worry made people buy gold, which is often seen as a safe investment.
Tomorrow, the U.S. central bank (Federal Open Market Committee or FOMC) will have a meeting. People are watching to see how Chairman Powell will respond to President Trump’s pressure to lower interest rates. If the U.S. central bank shows it is willing to lower rates, more people may buy gold, which does not pay interest but is safe when interest rates go down.
On the other hand, if the central bank is not willing to lower interest rates, it could cause more tension between President Trump and the bank. This tension could make people avoid risk and again buy gold. Even if gold prices fall for a short time, they are expected to stay strong.
Gold–Dollar Price Range Forecast: 3,310 – 3,355 USD
Note: This information does not guarantee profits. Please make your own decisions when trading.