Gold struggled to build on Friday’s gains, dipping at the beginning of the week. With less worry about world events alongside improving trade talks, people chose investments offering bigger returns instead. Better news regarding US-China dialogue—together with rising stock markets worldwide—lessened interest in secure options like Gold.
Even though prices are being pushed down, declines aren’t huge because people increasingly believe the Federal Reserve will lower interest rates once more this week—especially after recent reports showed US inflation cooling off. When it costs less to borrow money, the dollar usually loses value, making things Gold look better.
With the Federal Reserve poised to reveal its plans, investors seem hesitant. The market anticipates another rate reduction before year-end—a move expected to boost the value of Gold.
Worries about world events—like the situation in Ukraine, alongside news of drones over Kyiv—sometimes cause investors to seek safer places for their money.
Gold must remain well above $4,000; otherwise, prices may decline even more. If the precious metal rate happens to go below this level, it may start hovering between the $3948 and $39000 levels, but if it surges above the $4100 mark, traders’ interest in gold will rise, and it might even surpass $4160.
However, it is clear that before engaging in significant buying or selling, gold traders will wait for the Fed’s decisions and actions.
