- The price of gold sees a correction close to 5% after reaching a new historical maximum of $ 3,500 on Tuesday.
- The president of the United States Trump rejects previous statements and suggests lower tariffs for China, confirms Powell of the Fed as a boss until the end of his mandate.
- The markets buy the change in trend, with upward shares and bonds, the golden shelter gold.
The price of gold (Xau/USD) is experiencing a benefits and sees selling pressure on Wednesday to $ 3,300 at the time of writing. The benefit taking intensified after the comments of the president of the United States (USA) Donald Trump, who took a 180 -degree turn in his position on China and the Federal Reserve (Fed). After the closing of the stock market, the executive director of Tesla (TSLA), Elon Musk, said he will reduce his role in the Government Efficiency Department (Doge).
President Trump rejected previous statements in which he sought to say goodbye to the president of the Fed Jerome Powell To say now that it has no intention of saying goodbye despite its frustration with the Fed for not acting faster with interest rate cuts, the Wall Street Journal reported. The president continued to say that he will be “very kind” with China in any commercial conversation and that tariffs will decrease if the two countries can reach an agreement. Final tariffs on China would not be about 145%, but much lower, he said, according to Bloomberg.
What moves the market today: despite the correction, purchases follow
- Gold has fallen in relation to Bitcoin this week, but it is expected that its long -term performance trend will be extended due to the demand of its secure refuge qualities. Investors will be waiting for more statements by US leaders, who will cloud the perspectives in the next few days, Bloomberg reports.
- The central banks will continue to buy gold in an effort to diversify from the fiduciary currencies in the middle of the current political and economic agitation, according to the billionaire manager of coverage funds John Paulson, reports Reuters.
- “Gold is tactically very overwhelmed and extended – it has risen more than $ 500 in 8 days of negotiation, so there is naturally a mixture of buyers and some risk reduction,” said Nicky Shiels, head of research and metal strategy in MKS Pamp SA, reports Bloomberg.
Technical analysis of the price of gold: there is still a long way for an agreement
The precious metal sees its relative force index (RSI) to return to the normal negotiation range after having spent several days in the overcompra zone. An additional benefits would make sense given the softer tone of President Trump. Currently around 63, it would make sense that the RSI went back to 50 with the price of gold probably looking for support about $ 3,167, the key level of early April.
The upward daily pivot point at $ 3,415 is the first level of resistance, which is quite far and would mean that gold would completely reverse and even become positive in the day. Such movement would push the RSI back to the territory of overcompra. Above, the next resistance is at 3,464 $.
At the bottom, the first support is at $ 331, which has already broken in the first operations. At least one test is expected in the S2 in $ 3,282, which coincides with the minimum of April 17. Below, the key level of early April should also capture the attention of the operators at 3,167 $.
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.
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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.
