Last week, weak U.S. job data led to selling of the U.S. dollar and strong buying of gold. In addition, Israel bombed Doha, and Russia entered Poland’s airspace, where NATO shot down a drone. These events increased geopolitical risks, which pushed investors to buy gold as a safe asset, and gold reached a record high. After that, profit-taking caused some selling, but this week gold is still expected to stay strong.
At this week’s FOMC meeting, it is expected that the U.S. central bank will show a strong willingness to cut interest rates because of the weak job market. This could lead to more buying of gold, which does not pay interest.
However, after the meeting, there is a risk that investors may sell to take profits, so caution is needed.
This week’s forecast range for Gold/USD: 3,590 – 3,700 USD
Note: This information does not guarantee profits. Please make your own decisions when trading.