Yesterday, Federal Reserve official Bessent said, “At the September meeting, we should make a large 0.5% interest rate cut.”
In addition, President Trump said, “U.S. interest rates should be 1%.”
These comments increased pressure for interest rate cuts, and the U.S. dollar became weaker.
The U.S. CPI (Consumer Price Index) announced the day before showed that tariffs are not causing higher inflation. This made the market believe that there will be a rate cut in September, leading to more selling of the U.S. dollar and more buying of gold.
Today, the U.S. PPI (Producer Price Index) will be released. It is expected to be higher than last month. If the result is stronger than expected, hopes for an early rate cut may decrease, and selling of gold could become stronger.
In the short term, the U.S. dollar might recover a bit. However, the Federal Reserve’s rate cut policy is unlikely to change, so we expect any gold selling to be temporary.
Gold–Dollar forecast range: 3340 – 3380 (61.8%)
Note: This information does not guarantee profits. Please make your own decisions when trading.