- Gold fails to maintain profits despite the fall in US treasure yields and a weaker DXY.
- Trump’s refusal to lift tariffs to China without bitter concessions the mood of the market.
- Operators prepare for a week of heavy data in the US, including GDP, ISM and non -agricultural payroll.
The price of gold took a turn and erased the profits on Thursday, falling below the 3,300 $ brand while the dollar remained firm and the precious metal failed to capitalize on the fall in US treasure yields. A decalillated commercial war between the US sponsored a precious metal, which exchanged $ 3,294, losing more than 1.60%.
The markets remain volatile since the feeling oscillates between risk aversion and appetite for risk due to the comments of US President Donald Trump. Previously, Bloomberg revealed that China wants to exempt some American tariff products. The operators reacted positively to the news, but later Trump said that “it will not lift tariffs to China unless they give us something.”
The feeling became negative, and although the dollar cut some of its profits with the US dollar index (DXY), it follows 0.23% in 99.51. This prevents gold will recover land, and it seems that the operators were surprised after ensuring profits before the weekend.
The feeling of the consumer in the US worsened in April, according to the University of Michigan (UOM), which reported the fourth lower reading since the late 1970s.
Next week, the operators are attentive to the publication of the US Jolts report for March, the first reading of the Gross Domestic Product (GDP) of Q1 2025, the ISM manufacturing PMI and the non -agricultural payroll figures in April.
As for the possibilities that the FED reduces interest rates in the next meeting, operators see 92% probability of keeping them unchanged, according to Prime Market Terminal. However, operators expect the federal fund rate to end the year by 3.45%, equivalent to 86 basic relief points (PBS).
Source: Prime Market Terminal
Daily summary of market movements: the price of gold falls while the dollar is recovered
- The 10 -year American treasure bonus performance has fallen five basic points, reaching 4,266%.
- The real US yet yields collapsed four and a half points at 1,968%, as shown by the yields of treasure values ​​against inflation at 10 years.
- The feeling of the consumer of the University of Michigan (UOM) in April fell from 57 to 52. The inflation expectations of consumers for a year increased from 5% to 6.5% and an increase to five years of 4.4% from 4.1%.
- On Thursday, the president of Cleveland’s Fed, Beth Hammack, declared that the Fed could act as soon as in June if the data supports it, but emphasized that uncertainty weighs on business planning.
Technical perspective of the Xau/USD: it remains bullish but ready to test the $ 3,200
The golden gold trend remains intact, although the precious metal slides below $ 3,300 due to the lack of buyers’ commitment to push prices above $ 3,400. In addition, the relative force index (RSI) shows that the impulse of buyers is fading. This clears the way for sellers to push the XAU/USD down.
The first support would be $ 3,250. A rupture of this last will expose the peak of April 3, 3,167 $ and the simple mobile average (SMA) of 50 days in 3,041 $.
On the contrary, if buyers recover the $ 3,300, the following key resistance would be the maximum of April 22, $ 386 to prevent sellers from dragging down prices. The next key resistance level would be $ 3,400, followed by $ 3,450 and $ 3,500.
FAQS GOLD
Gold has played a fundamental role in the history of mankind, since it has been widely used as a deposit of value and a half of exchange. At present, apart from its brightness and use for jewelry, precious metal is considered an active refuge, which means that it is considered a good investment in turbulent times. Gold is also considered a coverage against inflation and depreciation of currencies, since it does not depend on any specific issuer or government.
Central banks are the greatest gold holders. In their objective of supporting their currencies in turbulent times, central banks tend to diversify their reserves and buy gold to improve the perception of strength of the economy and currency. High gold reserves can be a source of trust for the solvency of a country. Central banks added 1,136 tons of gold worth 70,000 million to their reservations in 2022, according to data from the World Gold Council. It is the largest annual purchase since there are records. The central banks of emerging economies such as China, India and Türkiye are rapidly increasing their gold reserves.
Gold has a reverse correlation with the US dollar and US Treasury bonds, which are the main reserve and shelter assets. When the dollar depreciates, the price of gold tends to rise, which allows investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rebound in the stock market tends to weaken the price of gold, while mass sales in higher risk markets tend to favor precious metal.
The price of gold can move due to a wide range of factors. Geopolitical instability or fear of a deep recession can cause the price of gold to rise rapidly due to its condition of active refuge. As an asset without yield, the price of gold tends to rise when interest rates lower, while the money increases to the yellow metal. Even so, most movements depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (Xau/USD). A strong dollar tends to keep the price of gold controlled, while a weakest dollar probably thrusts gold prices.
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.
