Last Friday, the U.S. jobs report for July was worse than expected. This surprise made the U.S. dollar weaker and caused gold prices to go up. Gold even went above last week’s highest price.
Because prices went up quickly, there may be some selling at the beginning of this week. However, geopolitical tension is rising. Former Russian President Medvedev responded to more U.S. sanctions on Trump by saying it’s a “step toward war.” In reply, the U.S. sent two nuclear submarines. This situation may make people buy gold again.
Also, many expect the U.S. to lower interest rates soon. This and the geopolitical risk could support gold prices after the short-term selling is over.
Still, gold prices may find it hard to go above the 3430 level, because in the past, prices often fell after reaching that area. The strong support level is near 3240, because gold stopped falling around that price at the end of May and June.
Expected Gold/Dollar Range: 3,260 – 3,375 USD
Note: This information does not guarantee profits. Please make your own decisions when trading.