Gold Price Drops but May Not Fall Much Further
Gold prices went up slightly during early Asian trading but later dropped back to around $3,400. The main reason is that the US dollar is getting stronger. This is because the US central bank (the Federal Reserve) has suggested it may keep interest rates higher for longer. A recent US strike on Iran’s nuclear sites also boosted demand for the dollar, which often causes gold to fall.
Even though gold has dropped, it’s still moving within the same price range it has followed for the past week. Many investors are waiting to see if the price drops more before making big decisions. If gold falls below key support levels, it could go down to around $3,322 or even under $3,300.
On the other hand, if gold climbs above $3,400 and holds strong, it might rise toward $3,435 or even reach near $3,451 — which is its two-month high. If that happens, it could try to touch the $3,500 level, which is an important price mark.
Traders are now watching upcoming global economic reports (PMIs), which show how businesses are doing. These reports, along with tensions in the Middle East, will influence gold’s next move.
Impact:
Gold might fall slightly if the dollar keeps rising. But fears from global tensions could possibly support gold and stop it from dropping too much.