Gold dropped in price after the U.S. GDP (economic growth data) for April to June was announced during New York trading hours yesterday. The GDP grew by 3.0%, which was much higher than the expected 2.5%, causing gold to fall.
Later, the FOMC (Federal Open Market Committee) meeting showed that the U.S. central bank is being careful about lowering interest rates. They did not give in to political pressure, and this led to more selling of gold.
Since gold reached a high of 3,429 last week, the price has been falling without stopping.
Chairman Powell also mentioned that there are risks that the job market could weaken. Because of this, and with the U.S. jobs report coming tomorrow, gold may continue to fall.
The lowest price on June 30 was 3,244. This price is also an important support level, based on a popular technical analysis method (called the 61.8% Fibonacci retracement). Many traders will pay attention to this level.
Expected gold price range: 3,245 – 3,300 USD
Note: The above information does not guarantee profit. Please make your own decisions when trading.