- The price of gold attracts heavy sales for the third tent -day in the middle of a combination of factors.
- Signs of avoiding US-China tensions and a modest USD uptick weigh precious metal.
- The aggressive fed rate cut bet should cap the USD and limit the losses for the XAU/USD pair.
The Gold Price (XAU/USD) expands its downtrend for the third consecutive days and drops to more than two weeks low, around $ 3,221 regions in the Asian session on Thursday. Signs of avoiding trade tensions between the US and China-the two largest economies in the world-will continue to undermine the demand for traditional safe property and efforts to descending pressure on precious metal. In addition, the US (USD) dollar has climbed a two-week top and further contributes to driving flow away from the commodity and the fall of the intraday.
Meanwhile. This can keep a cover on any significant USD appreciated transfer and should support the non -yielding price of gold. Moreover, the uncertainty surrounding the presidential and economic and economic policies should contribute to limiting losses for the XAU/USD pair leading to the basic US macro data scheduled to start a new month.
Daily Digest Market Movers: The price of gold continues to lose land while US-China's trade dependence exacerbates safely demanding
- U.S. President Donald Trump said this Thursday there is a “great possibility that we will reach a deal with China” and added that we have a “potential” trade deal in India, South Korea and Japan. Comments add to recently optimizing and further strengthening investors' confidence.
- The US dollar ticks higher in reaction to Trump's statements and dragged the safe gold price lower for the third consecutive day on Thursday. A breakdown below the $ 3,265- $ 3,260 pivotal support motivates the technical sale and further contributes to the fall of the intraday to a two-week low.
- Automatic data processing (ADP) reported on Wednesday that the private sector of work rose 62K in April. It was marked by a well -known decline from the increase of 147K (modified from 155k) recorded in March and also unable to hope the market for a 108,000 reading through a wide margin.
- Adding to this, the Bureau of Economic Analysis estimate, the US economy contracted at an annual rate of 0.3% in the first quarter of 2025 after growing at a steady speed of 2.4% in the previous quarter. The data, in turn, changes concerns about a backwardness to us.
- Meanwhile. Moreover, the main PCE price index, which does not include a change of food and energy prices, increased by 2.6% compared to 3% in February, which teaches in avoiding inflationary pressure.
- US MacRO's depressing data again testifies that federal reserves will continue its cutting rate in June. Entrepreneurs have priced the possibility that the US central bank will lower the costs of borrowing by 100 basic points by the end of the year. It should cap the USD and support non-harvest yellow metal.
- On the geopolitical front, Kremlin spokesman Dmitry Peskov said Wednesday that Russia could move for war on a scale comparable to the Soviet Union in World War II if necessary. In addition, a Russian drone attack killed two civilians and injured five others in southern Ukraine.
- It can further contribute to limiting the losses for the XAU/USD pair. Entrepreneurs are now looking forward to the major releases of the US macro – the ISM Manufacturing PMI later this Thursday and the Nonfarm Payroll report on Friday. Data will provide clues about the Fed rate cutting path and influence the commodity.
The price of gold can accelerate the decline of correction once 50% five. level, around $ 3,229- $ 3,228 is broken down specific
From a technical point of view, the overnight fall below the 38.2% level of Fibonacci shrinkage of the latest legs from the mid-$ 2,900So the monthly swing is low, and the $ 3,265- $ 3,260 has been seen as a major trigger for the bears. That is said, oscillators in the sun -day chart – Even if they lose positive traction – the negative perspective has not yet confirmed. Therefore, it is neatly wait for the reception below 50% FIBO. Level, around $ 3,229- $ 3,228 regions, before positioning for further losses. The price of gold can accelerate the collapse towards the $ 3,200 round figure on the route to 61.8% FIBO. level, around $ 3,160 zone.
On the Flip side, any recovery attempt can now face resistance near the aforementioned support breakpoint, around $ 3,260- $ 3,265 regions. This is followed by 38.2% FIBO. Level, only leading the $ 3,300 mark, which if cleared can trigger a short cover rally and lift the gold price to the $ 3,348- $ 3,350 supply zone. Some followed the purchase, leading to a subsequent strength beyond $ 3,367- $ 3,368 regions (23.6% five levels), would suggest that recent pulling correction has run its course. The XAU/USD pair may aim to get the $ 3,400 mark and expand the momentum to the $ 3,425-3,427 intermediate hurdle before trying to conquer the $ 3,500 psychological score.
Gold FAQs
Gold plays an important role in human history because it is widely used as a store of value and exchange medium. Currently, in addition to its brightness and use for jewelry, precious metal is widely seen as a safe property, which means it is considered a good investment during the chaotic period. Gold is widely seen as a fence against inflation and against the removal of money because it does not rely on any specific or government.
Central banks are the largest gold holder. With their goal to support their money in chaotic hours, the middle banks tend to vary their reserves and buy gold to improve the noticeable economic strength and the money. High gold reserves can be the source of trust for the solvency of a country. Central Banks added 1,136 tons of gold worth $ 70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest annual purchase since the notes began. Middle banks from emerging economies such as China, India and Turkey are rapidly increasing their gold reserves.
Gold has an opposite correlation with the US and US Treasury dollars, which is both major reserve and safe properties. When the dollar reduces, gold tends to rise, enabling investors and middle banks to vary their properties in turbulent times. Gold is also inversely linked to risk ownership. A rally in the stock market tends to weaken the price of gold, while sellers in the risk markets tend to favor precious metal.
The price can be moved due to a wide range of factors. Geopolitical instability or fear of a deep recession can rapidly increase the price of gold due to the status of the safe haven. As a small yield property, gold tends to rise with lower interest rates, while the higher cost of money usually weighs yellow metal. However, most moves depend on how the US dollar (USD) acts as the property is priced at the dollar (XAU/USD). A strong dollar tends to maintain the price of gold controlled, while a weaker dollar is likely to push gold prices.
