- Gold Price sees a close 5% correction after pressing a new all-time high at $ 3,500 on Tuesday.
- U.S. president Trump criticized earlier statements and indicated lower tariffs for China, confirming Fed's Powell as the head until the end of its term.
- The markets buy in the twisted, with equal -equal and higher bonds, safe gold punished.
The price of gold (XAU/USD) undergoes some income extraction and sees the sale of pressure on Wednesday to $ 3,300 at the time of writing. The revenue was taken in comments from US president (US) Donald Trump, who made an 180-degree turning on his stance in China and Federal Reserve (FED). After closing the bell, Tesla (TSLA) chief executive executive Elon Musk said he would reduce his role in the Department of Government (Doge).
President Trump criticized earlier statements in which he was seeking to burn the Fed Chair Jerome Powell To say now that he has no intention of burn him despite his failure to Fed not moving faster at the interest rate cuts, The Wall Street Journal reports. The president said he would be “stunning” in China in any trade communication and tariffs would decrease if the two countries could reach a deal. The last tariffs in China are not close to 145%, but less, he said, Bloomberg reports.
Dig -Digest Market Movers: Despite still buying correction
- Gold has sank related to Bitcoin this week, but the long -term outperformance trend is expected to expand in demand for these safe characteristics. Investors expect more sound bites from US leaders, which will fill the outlook on early days, reports Bloomberg.
- Central banks continue to buy gold in a push to diversify from paper currencies amid the current political and economic disturbance, according to billions of hedge-fund manager John Paulon, Reuters report.
- “The tactical over -thinking and expanded by gold -it increased by $ 500 with 8 days of trading, so it was natural to have a mix of a consumer pause and some risk reduction,” said Nicky Shiels, head of research and metal strategy in MKS PAMP in, Bloomberg report.
Analysis of technical gold price: a long way to go for a deal
The precious metal sees the KaMag -child of index (RSI) that returns to the normal trading scope after spent several days in excessive thinking. Some more income to the acquisition is reasonable because of the softer rhetoric from President Trump. Currently around 63, it makes sense for the RSI to return to 50 with gold prices probably seeking support near $ 3,167, the pivotal level from early April.
The day -to -day pivot point upside down to $ 3,415 is the first level of resistance, which is relatively far away and means that gold returns altogether and even positive during the day. Such a step will push the RSI back into excessive territory. Plus, the next objection will enter $ 3,464.
On the downside, the first support was at $ 3,331, which was already damaged in early trading. Look at at least one test on the S2 at $ 3,282, which coincides with low on April 17. Below, the pivotal level from early April should catch the attention of entrepreneurs as well as $ 3,167.
Xau/USD: Sun -Taral chart
US-China Trade War Faqs
In general, a trade war is an economic conflict between two or more countries due to intense protectionism at one end. This indicates the creation of trade barriers, such as tariffs, resulting in counter-barriers, increasing import costs, and therefore the cost of living.
An economic conflict between the United States (US) and China began early in 2018, when President Donald Trump set trade barriers in China, claiming unfair commercial skills and theft of intellectual ownership from the Asian giant. China has taken revenge action, which imposes tariffs on many US goods, such as vehicles and soybeans. The tension increased until the two countries signed the US-China Phase One Trade Deal in January 2020. The agreement required structural reforms and other changes to the Chinese economic and trade regime and pretended to restore stability and trust between the two countries. However, the coronavirus pandemic took the focus on chaos. However, it is worth mentioning that President Joe Biden, who was in office after Trump, kept the tariffs in the area and added some additional levies.
Donald Trump's return to the White House while the 47th US president caused a fresh wave of tension between the two countries. During the 2024 election campaign, Trump promised to impose 60% tariffs in China once he returned to the office, which he made on January 20, 2025. By Trump back, the US-China trade war was intended to continue where it was left, with title policies of title affecting the global economic landscape among the interruptions Global supply chain, resulting in a reduction in spending, specific investment, and direct feeding to consumer index prices.
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