- The renewed conflict between India and Pakistan stimulates the haven of Haven in gold, weighs on the feeling of Wall Street.
- Trump signals the flexibility of prices; The markets ignore the optimistic tone of the American secretary of the Treasury.
- Traders are waiting for the FOMC rate decision and Powell's press conference for political track clues.
Gold joined a two-week summit on Tuesday as Chinese markets resumed operations after long holidays on weekends and concerns about American trade policies. The geopolitical risks also stimulated precious metal, with a new conflict emerging between Pakistan and India. At the time of writing the editorial staff, XAU / USD is negotiated at $ 3,400, which increased by more than 2.70%.
Wall Street finished Tuesday session with losses while merchants digested the latest comments from US President Trump concerning trade policies. He said he would dictate the rate levels and recognized that he would be flexible in setting up tasks. Investors rejected the previous comments of the US Secretary of the Treasury Scott Bessent about any agreements with 17 countries.
Bloomberg reported that India has struck terrorist camps in Pakistan but no military sites. The Indian government said: “He carried out military strikes against” terrorist camps “in Pakistan, a decision expected after promising reprisals for a militant attack last month in cashmere which killed dozens of tourists.”
In the meantime, the defense leader of Pakistan has warned against an “imminent” confrontation with India while tensions degenerate on a dispute concerning the rights of the river water and the accusations surrounding a recent terrorist attack in cashmere.
In addition, the American trade deficit has widened in March, revealing the American trade department, because all eyes are fixed on the decision of the Federal Open Market Committee (FOMC). The Fed should maintain the unchanged prices as planned by investors, which would examine the press conference after the decision of the president of the Fed, the president of the Fed,.
Daily Digest Market Movers: The price of gold capitalizes on the fall in bond yields of the US Treasury
- The drop in yields of the US Treasury has increased gold prices. The American 5 -year -old Treasury yield is to dive five base points at 4.298%. At the same time, real yields in the United States decreased by three BPS to 2.038%, as shown by titles protected by treasury inflation at 10 American years.
- The US trade department has revealed that the exchange of exchanges was -140 billion dollars higher than expected, at -137 billion dollars and exceeded the printing of -123.2 billion dollars in February.
- The American economy remains solid, as revealed by the report on non -Farm pay last week and the release of Solid ISM SERVICES PMI on Monday. Nevertheless, increased tensions in the conflict of Russia-Ukraine, the War of Israel against Hamas and the hostilities between India and Pakistan could prevail over the dependence of traders with regard to macroeconomic data, promoting the feeling of the market.
XAU / USD technical perspectives: gold price on the point of contesting the support of $ 3,350
The price of gold should extend its earnings in the middle of a mood in the sour market. Confirmation of a two -colored “harami” diagram model sent an XAU / USD rally, although the advance was caused by geopolitical tensions and the reopening of Chinese markets on Tuesday.
Once XAU / USD erases the $ 3,400 bar, a new $ 3,450 test is on the cards. The next stop would be the record at $ 3,500. Conversely, if the price of gold falls below $ 3,400, the next support would be the figure of $ 3,350. On a new weakness, the next line of defense of buyers would be $ 3,300.
FAQ GOLD
Gold played a key role in the history of man because it was widely used as a reserve of value and means of exchange. Currently, apart from its shine and its use for jewelry, precious metal is largely considered as an asset in Houmle, which means that it is considered a good investment at the turbulent time. Gold is also widely considered as coverage against inflation and the depreciation of currencies because it was not based on a specific transmitter or government.
Central banks are the biggest gold holders. In their objective of supporting their currencies at the turbulent time, central banks tend to diversify their reserves and buy gold to improve the perceived force of the economy and money. High gold reserves can be a source of confidence for the solvency of a country. The central banks added 1,136 tonnes of gold worth around $ 70 billion to their reserves in 2022, according to World Gold Council data. This is the highest annual purchase since the start of the files. The central banks of emerging savings such as China, India and Turkey quickly increase their gold reserves.
Gold has an opposite correlation with the US dollar and American treasury vouchers, which are both the main security and security assets. When the dollar depreciates, gold tends to increase, allowing investors and central banks to diversify their assets on turbulent times. Gold is also inversely correlated with risk assets. A stock exchange on the stock market tends to weaken the price of gold, while sales in the risky markets tend to promote precious metal.
The price can evolve due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly degenerate gold prices because of its security status. As an without efficiency, gold tends to increase with lower interest rates, while the cost of higher silver generally weighs the yellow metal. However, most movements depend on how the US dollar (USD) behaves as the asset is assessed in dollars (XAU / USD). A strong dollar tends to maintain the price of controlled gold, while a lower dollar is likely to raise gold prices.
