- The price of gold derives lower as the signs of the softening of American-Chinese commercial tensions undergo the demand for safe security.
- The USD reverses part of the night slide and exerts additional pressure on the XAU / USD pair.
- FED rates drops could cap the USD and help limit losses for goods in the midst of geopolitical risks.
The price of gold (XAU / USD) extends its regular intraday descent through the Asian session on Tuesday and is closer to the $ 3,300 mark as hoped for potential de-escalation of American-Chinese trade tensions undergo the demand for package assets. Apart from this, the emergence of an American dollar (USD) which contributes more to keep the flows of the goods away. That said, a combination of factors helps the metal precious to hold comfortably above the pivot support of $ 3,265 to $ 3,260.
Investors remain in advance in the midst of uncertainty on the trade policies of American president Donald Trump and persistent geopolitical tensions. In addition, the prospects for softening more aggressive policies by the Federal Reserve (Fed) could keep a lid on any other appreciation of the USD and help limit losses for the price of gold not rendered. Merchants could also choose to move on the sidelines and refrain from placing directional bets before the main versions of this week's American macro, including the non -agitated pay report (PNF) on Friday.
Daily Digest Market Movers: The price of gold continues to lose ground in the middle of commercial hopes and the stronger USD
- The recent measures of China to exempt certain American goods from its reprisal prices have shown a desire to defuse tensions between the two largest economies in the world. In addition, the Secretary in the United States of the Treasury, Scott Bessent, said on Monday that many best American trade partners had made “very good” tariff proposals.
- The signs of commercial progress support the optimistic mood of the market. Meanwhile, the US dollar resumes traction and pushes moves from the price of gold to security.
- Investors, however, remain at the limit of mixed signals concerning the state of negotiations between the United States and China. In fact, American president Donald Trump said last week that commercial discussions with China were underway, although China denied that pricing negotiations occur.
- Meanwhile, traders expect the federal reserve to resume its rate reduction cycle in June. In addition, current pricing on the market indicates the possibility of at least three rate drops by the end of this year. The drop in borrowing costs could help yellow metal not making it to maintain a short -term floor.
- Russian President Vladimir Putin declared a unilateral 72-hour unilateral ceasefire in the May 8 Ukrainian conflict, although Ukrainian President Volodymyr Zelensky rejected the three-day truce. In addition, the involvement of North Korea in the Russian-Ukraine war maintains the geopolitical risk bonus at stake.
- Traders are now impatiently awaiting the publication of American job opening data for a momentum later on Tuesday. Apart from that, the United States's personal consumption expenses on Wednesday, and the non-agricultural pay report on Friday could provide a new overview of the Fed policy prospects.
Glood of gold price less than 38.2% FIBO. could attract dimans buyers and remain limited near the support of $ 3,265 to 3,260
A weakness lower than the zone from 3,300 to 3,290 $, representing the drop level of 38.2% fibonacci of the last stage near the middle of $ 2,900 or the lower monthly swing, could continue to find decent support near the horizontal area of 3,265 to $ 3260. A convincing break below the latter will be considered a new trigger for lowering traders and will prepare the land for an extension of the recent decline in the peak of all time affected last week. The subsequent fall could lead to the price of gold at the level of retracement of 50%, around the region of $ 3,225, on the way to the $ 3,200 mark.
On the other hand, the region of 3,348 to $ 3,353 now seems to have emerged as an immediate obstacle. This is closely followed by the supply area of $ 3,366 to $ 368, which, if it is erased, should allow the price of gold to recover the $ 3,400 mark. The momentum could extend to 3,425 to 3,427 intermediate obstacles before the bulls try to conquer the psychological brand of $ 3,500.
US dollar price today
The table below shows the percentage of variation in the US dollar (USD) compared to the main currencies listed today. The US dollar was the strongest against the New Zealand dollar.
| USD | Eur | GBP | Jpy | Goujat | Aud | Nzd | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.34% | 0.28% | 0.30% | 0.29% | 0.29% | 0.47% | 0.46% | |
| Eur | -0.34% | -0.03% | -0.02% | -0.02% | -0.02% | 0.14% | 0.14% | |
| GBP | -0.28% | 0.03% | 0.00% | 0.01% | 0.03% | 0.17% | 0.17% | |
| Jpy | -0.30% | 0.02% | 0.00% | -0.01% | -0.01% | 0.09% | 0.17% | |
| Goujat | -0.29% | 0.02% | -0.01% | 0.01% | -0.00% | 0.17% | 0.16% | |
| Aud | -0.29% | 0.02% | -0.03% | 0.00% | 0.00% | 0.17% | 0.16% | |
| Nzd | -0.47% | -0.14% | -0.17% | -0.09% | -0.17% | -0.17% | -0.01% | |
| CHF | -0.46% | -0.14% | -0.17% | -0.17% | -0.16% | -0.16% | 0.00% |
The thermal map shows the percentage of variations in the main currencies against each other. The basic currency is chosen in the left column, while the quotes motto is chosen in the upper row. For example, if you choose the US dollar in the left column and move along the horizontal line to the Japanese yen, the percentage of variation displayed in the box will represent USD (base) / JPY (quote).
