- The price of gold resumes a positive traction, because trade -related uncertainties increase safety assets.
- The USD is struggling to attract any purchase of follow -up despite the feet of the Fed.
- The bulls do not seem to be affected by a positive risk tone, which tends to undermine the XAU / USD pair.
Gold Price (XAU / USD) sticks to its strong intraday gains thanks to the Asian session on Thursday and is currently negotiating around the round bar of $ 3,400. US President Donald Trump tempered the hopes of a quick resolution in the American-Chinese trade war saying that he was not really in a hurry to sign agreements. This, with the persistent geopolitical risks resulting from the Russian-Ukraine war, conflicts in the Middle East and a dangerous military confrontation on the Indian-Pakistani border, goes up the return bruises of a two-week summit hit on Wednesday.
Meanwhile, the US dollar (USD) meets a new supply and erodes part of the higher night movement led by the heavenly break from the Federal Reserve (Fed). This is considered to be another factor acting as a rear wind for the price of gold, although a positive risk tone prevents bulls from placing aggressive bets. Nevertheless, the fundamental backdrop suggests that the path of the slightest resistance for the XAU / USD pair is upwards. Merchants are now impatiently awaiting the first American unemployment complaints and the announcement by Trump from a major trade agreement for short -term opportunities.
Daily Digest Market Movers: Gold Prix benefits from the revival of drying demand, the renewed USD sale
- US President Donald Trump said on Wednesday that he was not open up to the 145% tariffs imposed on China to encourage negotiations on the trade war. This maintains a lid on optimism led by the announcement of American-Chinese sales talks later this week and provides support for the price of gold to females.
- Airports were closed in Moscow in the middle of a huge Ukrainian drone attack before the three -day truce announced by Russian President Vladimir Putin. In addition, Ukraine said Russia launched guided bombs almost three hours after the cease-fire in force this Thursday.
- Meanwhile, the Israeli army said that it had entirely disabled Yemen 'main airport in the capital, Sanaa, which is controlled by the Houthis. In response, a member of the best political organization of the Houthis said that the response to Israel's attacks was coming. This maintains the geopolitical risks at stake and further underpins the XAU / USD pair.
- The federal reserve, as widely expected, held its key interest rate unchanged in a range between 4.25% at 4.5% at the end of a two -day monetary policy meeting on Wednesday. In the declaration that accompanies it, the American central bank noted that uncertainty about economic prospects has further increased.
- At the press conference after the meeting, the president of the Fed, Jerome Powell, also noted that there was a lot of uncertainty about the prices and said that the good thing to do was to wait for greater clarity. This suggests that the American Central Bank does not lean towards the reduction of rates of soon, although it has failed to impress the American bulls.
- Trump declared on Truth Social that he will announce a major commercial agreement, the first of many, with representatives of a large country well respected on Thursday. This remains favorable to a generally positive risk tone around the stock markets and could act as a front wind for precious metal.
- The objective of the market will remain glued to Trump's press conference at 14 GMT at the Oval Office. Apart from this, the release of Thursday of the US Initial weekly US claims on unemployment will influence USD prices dynamics and provide a new momentum at XAU / USD pair later during the North American session.
The price of gold must exceed $ 3,434 to 3,435 to support the prospects for any other intraday gain
From a technical point of view, the emergence of fresh purchases near the resistance of $ 3,260 of the resistance to assistance and the subsequent movement promotes XAU / USD bulls. In addition, the oscillators on the daily graphic are held comfortably in positive territory, suggesting that the path of the slightest resistance for the price of gold remains upwards. Certain follow-up purchases beyond the region of $ 3,434 to $ 3,435, or the weekly summit, will reaffirm the positive bias and will allow the merchandise to reset the peak of all time and make a new attempt to conquer the psychological brand of $ 3,500.
On the other hand, the area from 3,465 to $ 3,460 could continue to act as solid support before the region of $ 3,328-327 and the figure of $ 3,300. A convincing break below the latter would cancel the short -term positive prospects and encourage a technical sale. The downward trajectory could then drag the price of gold to the intermediate support of $ 3,265 to 3,260 in the region to the region of $ 3,2222 and the lower swing from last week, around the $ 3,200 district.
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.
