After last week’s U.S. jobs report, U.S. long-term interest rates kept falling at the start of this week. Some people now think the Federal Reserve may cut rates by 0.5% at the meeting next week. Because of this, the U.S. dollar became weaker, and gold, which does not pay interest, reached a new record high.
On the same day, the French parliament rejected Prime Minister Baille’s government in a vote. In Argentina, the ruling party lost in local elections. In the Netherlands and other European countries, political worries are also growing. These problems made more investors buy gold as a safe asset.
However, gold prices went up very fast. With the U.S. CPI (inflation) report coming soon, people should be careful of a price drop from profit-taking.
Gold/Dollar expected range: 3,570 – 3.650 USD
Note: The above is not a promise of profit. Please make your own decision when trading.