- The price of gold recovers positive traction as commercial optimism fades between the US and China, reviving the demand for safe refuge.
- The economic concerns of the United States and the betting bets of the Fed undergoes the USD, also benefiting the merchandise.
- A positive risk tone could stop the xau/USD bulls to perform aggressive bets and limit profits.
The price of gold (Xau/USD) attracts new buyers during the Asian session on Thursday, reversing the strong losses of the previous day and breaking a two -day run streak to the 3,260 $ area or the weekly minimum. The comments of the US Treasury Secretary, Scott Besent, on Wednesday suggest that the current commercial stagnation between the US and China could continue for one more time. This adds to the growing uncertainty about the tariffs of US President Donald Trump and his impact on the global economy, which helps rekindle the demand for gold as a safe refuge.
Meanwhile, the US dollar (USD) struggles to capitalize on a two -day recovery movement from a minimum of several years and turns out to be another factor that supports the price of gold. Apart from this, the prospects of a more aggressive relief of politics by the Federal Reserve (Fed) offer additional support to the yellow metal without performance. Meanwhile, investors remain optimistic about a possible commercial agreement between the US and China. This, together with the relief of fears about the independence of the Fed, continues to support a positive risk tone and could act as an obstacle to the Xau/USD.
What moves the market today: the price of gold attracts safe refuge flows amid persistent commercial uncertainties
- The secretary of the US Treasury, Scott Besent, denied the reports that the White House is considering unilaterally reducing tariffs on Chinese imports. Besent added that the high tariffs imposed by both parties must be reduced each other before the conversations can begin, moderating the hopes of a rapid resolution of the commercial stagnation between the US and China and reviving the demand for the price of gold as a traditional refuge.
- The Beige Book of the Federal Reserve showed that the general uncertainty about the changing tariff plans of US President Donald Trump threatens to stop growth in the coming months. The report also revealed that consumer spending remains mixed, while the labor market has shown signs of cooling after stagnating or decreasing in many Fed districts, pointing to a gloomy panorama.
- In the front of the economic data, a preliminary reading of the PMI composed of Global S&P indicated that the business activity in the US expanded at a slower pace in April. The data revealed a divergent performance between sectors, with the manufacturing activity continuing to grow modestly, while the non -manufacturing PMI pointed to signs that demand in the services sector could be losing impulse.
- The US dollar erodes part of its recovery earnings recorded in the last two days amid bets that the Federal Reserve will resume its cycle of rates cuts in June and will reduce indebted costs at least three times by the end of this year. This turns out to be another factor that benefits yellow metal without performance, although a generally positive risk tone could limit any additional gain.
- Meanwhile, the signs of relief in commercial tensions between the two largest economies in the world and the setback of fears that Fed could lose its autonomy increased the appetite of investors by riskier assets. This could stop the bullies of making new bets around Xau/USD, since operators now expect the macroeconomic data of the US – unemployment requests and orders of lasting goods – to obtain short -term impulses.
The price of gold needs to strengthen itself above the 23.6% FIBO level. For the bulls to recover the short -term control
From a technical perspective, the precious metal showed some resilience below the level of fibonacci recoil of 38.2% of the last rise from the neighborhood of the $ 2,900 or the monthly minimum. However, the subsequent movement stops near the level of 23.6% fibo., Around the 367-3,368 $ region, which should now act as a key point. Since the oscillators in the daily chart are still comfortably remain in positive territory, some monitoring purchases should allow the price of gold to recover the $ 3,400 mark. The impulse could extend even more towards the intermediate obstacle of 3,425-3.427 $, above which the bulls could make a new attempt to conquer the psychological brand of 3,500 $.
On the other hand, the $ 3,300 mark, followed by the area of ​​$ 3,288 (level of 38.2% FIBO.) And the minimum of the previous night, around the $ 3,260 area, could offer support to the XAU/USD. A convincing break below the latter could drag the price of gold even more towards the 50%recoil level, around the 3,225 $ region. Some follow -up sales, which lead to a subsequent fall below the 3,200 $ brand, will suggest that the precious metal has reached its maximum short -term point and pave the path for an extension of the decline drop of this week from the historic peak.
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.
