- The price of gold falls more than 1% on Monday while relief extends through markets.
- The US Treasury Secretary, Besent, said during the weekend there are several agreements on the table with several Asian countries.
- Gold is softened while operators prepare for possible agreements between the US and China, backed by the persistent confirmation of the Trump administration about conversations.
The price of gold (Xau/USD) is falling at the beginning of the week, quoting around $ 3,280 at the time of writing on Monday. The correction occurs after a television interview in ABC with the United States Secretary of the Treasury (USA), Scott Besent, on Sunday, who mentioned that several major agreements were on the table with Asian countries. “If there are 180 countries, there are 18 important commercial partners, let’s leave China aside, because that is a special negotiation, there are 17 important commercial partners, and we have an ongoing process,” said Besent, and added “some of those are moving very well, especially with Asian countries.”
In addition, the US Secretary of Agriculture, Brooke Rollins, said Sunday that the Trump administration is having daily conversations with China about tariffs, according to Reuters. Rollins pointed out the ongoing conversations between the two nations and that the trade agreements with other nations were “very close.” It seems that more relief in the history of tariffs could be on its way, which takes away impulse to increase in gold.
However, the fall in the price of gold could be limited since the Chinese Ministry of Foreign Affairs reiterated on Monday that President Xi Jinping and the US president Donald Trump have not recently had a call. “The US and China have not carried out negotiations or tariff consultations,” said the Ministry.
Looking towards the rest of the week, the focal point will be the publication of the Non -agricultural payrolls (NFP) April on Friday. The US data as a whole will attract much more attention as a barometer to evaluate the next step of the Federal Reserve (FED), with the Federal Open Market Committee (FOMC) delivering its next decision on interest rates on May 7. The US data last week already began to show signs of a change, with, for example, lasting goods revealing a substantial change in the feeling of the consumer.
What moves the market today: the Thai Central Bank enjoy the gold reserve status
- Toubani Resources, an African gold mining capitalized at 61 million dollars in the Australian Stock Exchange (ASX), is contributing upwards after ensuring commitments for a debt package of 160 million dollars in a joint business with a family office, Financial Review reports.
- The Thailand bond market is on the way to registering its best monthly tickets in more than three years, aided by betting of interest rates and a stronger baht due to the prices increasing gold, Bloomberg reports.
- China is intensifying the scrutiny of Hong Kong billionaire plans, Li Ka-Shing, to sell their ports in Panama to a group backed by Blackrock Inc., while the US president, Donald Trump, sought preferential treatment for US ships on the river, adding uncertainty about whether the spectacular agreement will proceed.
Technical analysis of gold price: tail winds persist
Although the ingot is softening again this Monday, merchants and analysts still claim that a greater increase for precious metal is possible. Although several commercial agreements are on the table and the negotiations are ongoing, the US president, Trump, mentioned Friday that a delay in the exemption of tariffs is not being discussed at this time. Meanwhile, the rhetoric between China and the USA does not show signs that real conversations are being carried out after Chinese retailer Shein increased their prices for US markets by more than 100% to move the import costs of tariffs to the US client.
The daily pivot point at $ 3,318 is the first obstacle that needs to be recovered on Monday. From there, it is quite a stretch up to $ 3,424 to reach resistance R1. The historical maximum at $ 3,500 will be a firm upward limit, which makes resistance R2 at 3,529 $ an almost implarable level to reach this Monday.
At the bottom, the S1 support is providing a mattress at $ 3,266, converging approximately with the minimum last week of $ 3,260. Below, the fundamental technical floor about $ 3,245 (Maximum of April 11) comes into play. Finally, S2 support at $ 3.213 should prevent any additional drop towards the fundamental level at $ 3,167 (maximum of April 3).
Xau/USD: Daily graphic
Commercial War between the US and China Faqs
In general terms, “Trade War” is a commercial war, an economic conflict between two or more countries due to the extreme protectionism of one of the parties. It implies the creation of commercial barriers, such as tariffs, which are in counterbarreras, increasing import costs and, therefore, the cost of life.
An economic conflict between the United States (USA) and China began in early 2018, when President Donald Trump established commercial barriers against China, claiming unfair commercial practices and theft of intellectual property by the Asian giant. China took retaliation measures, imposing tariffs on multiple American products, such as cars and soybeans. The tensions climbed until the two countries signed the Phase one trade agreement between the US and China in January 2020. The agreement required structural reforms and other changes in China’s economic and commercial regime and intended to restore stability and confidence between the two nations. Coronavirus pandemia diverted the attention of the conflict. However, it is worth mentioning that President Joe Biden, who took office after Trump, kept the tariffs and even added some additional encumbrances.
Donald Trump’s return to the White House as the 47th US president has unleashed a new wave of tensions between the two countries. During the 2024 election campaign, Trump promised to impose 60% tariff particularly in investment, and directly feeding the inflation of the consumer price index.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
