Gold reaches new historical maximum by the commercial war between the US and China

• The price of historical maximum refreshment above $ 3,300, while US President Donald Trump plans to reduce China dependence in critical minerals.
• Investors doubt the credibility of the US dollar due to Trump’s erratic decisions about international policies.
• Fed President Jerome Powell is expected to provide a new orientation on the perspectives of monetary policy.

The price of gold (Xau/USD) maintains the fortress intradic and lies firmly above $ 3,300 at the beginning of the American session on Wednesday. The yellow metal recorded a new historical maximum near the $ 3,318 in the day. Precious metal remains an attractive investment in the midst of the growing world commercial tensions. The intensification of the commercial war between the United States (USA) and China has forced participants in financial markets to remain in the safe shelter, assuming that the struggle for the domain between the two countries is painful for the world economy.

The tariff war between the greatest world powers has been even more intensified, since the US president, Donald Trump, ordered his team to investigate possible tariffs to all imports of critical minerals, in an effort to reduce his dependence on China. The American dependence on mineral imports “raises the possibility of risks for national security, defense preparation, prices stability and economic prosperity and resilience,” Trump said in the order, Reuters reported.

Donald Trump has taken a step to reassess the levies on vital minerals after Beijing announced a non -tariff barrier to its exports by establishing a licensing system. Earlier this month, Beijing also imposed export restrictions of six heavy metals of rare earths and rare earth magnets.

Market experts are concerned that the US economy can be vulnerable without these minerals, since they barely produce them, given their application in many industries, including defense and technology.

Beijing has imposed restrictive controls on exports of rare minerals to the US in retaliation for the bulky reciprocal tariffs that Donald Trump imposed. Until now, the US has raised additional Chinese import tariffs up to 145%. At the same time, China has also imposed 125% tariffs on US imports. Meanwhile, Trump has declared a 90 -day break in reciprocal tariffs for the rest of its commercial partners.

Meanwhile, the possibility of commercial conversations between Washington and Beijing has improved slightly. In European business hours, China was willing to speak with the US, but warned that Washington must show respect. “If the US really wants to solve the issue through dialogue and negotiation, it should stop exerting extreme pressure, stop threatening and blackmailing, and talking to China on the basis of equality, respect and mutual benefit,” said the spokesman of the Ministry of Foreign Affairs, Lin Jian, according to France24.com.

Daily summary of market movements: the weakness of the dollar keeps gold on the rise

• The strong rise in the price of gold is also driven by the weakness of the US dollar (USD). The US dollar index (DXY), which measures the value of the green ticket compared to six main currencies, falls to about 99.50, staying close to its lowest level in three years. Technically, the weakness of the US dollar makes the price of gold an attractive bet for investors.
• The dollar has suffered an intense wave of sales, since investors fear that the commercial war between the US and China will be more painful for the US economy than for the rest of the world.
• Market participants expect the substitutes for Chinese products available in the US economy to be unable to match the price and quantity in a short time due to the absence of manufacturing facilities and a low cost competitive advantage. This could lead to US companies to raise the prices of their products to compensate for constant demand, which would cause inflation and reduce the purchasing power of households. This scenario could cause stagflation in the US economy and is unfavorable for the dollar.
• In addition, investors are losing faith on the American dollar label as an active refuge due to the always changing tariff holders of President Trump. His sudden decision to declare a 90 -day pause in the execution of reciprocal tariffs and the signals to exempt taxi taxes for some time have forced investors to doubt the credibility of the US dollar.
• Meanwhile, the recovery of the yields of the American bonds due to the escalation of the fears of an economic slowdown in the United States has not managed to lighten the strength of the price of gold. The yields of the US treasure bonds at 10 years have regained up to about 4.34% after correcting almost 6.6% in the last two days since its recent maximum of 4.60%.
• Historically, the greatest yields of assets that accrue interest reduce the attractiveness of the assets that do not accrue them, such as gold. However, treasure yields have not caused ravages among gold bundles despite having risen 11% in more than a week, since operators have increased their bets in favor of the Federal Reserve (Fed) cutting the interest rates in 100 basic points (PB) this year. The operators have increased their bets in favor of the Fed in the midst of the rerusing risks of the US economy.
• To obtain new clues about the perspectives of interest rates, investors expect the speech of the president of the FED, Jerome Powell, at the Chicago Economic Club at 17:30 GMT.
• In the Economic Front, US retailers increased at a strong rate of 1.4% in March in intermennsual terms, exceeding 1.3% estimates and the previous publication of 0.2%.

Technical Analysis: Gold is maintained above the 20 -day Ema

The price of gold proves the area above $ 3,300 and records a new historical maximum around $ 3,318 on Wednesday. The prospects for the price of gold are bullish, since the 20 -day exponential mobile average (EMA) is inclined to rise and quotes around 3,112 $.

The 14 -day relative force (RSI) index is listed above 70.00, which suggests a strong bullish impulse.

Down, the 20 -day EMA will act as a key support zone for the torque. Upwards, the round level of $ 3,400 will act as a key resistance zone.