- The price of gold flirts with a loss of almost 1% on Whit merchants, reducing their gold rate hedges in gold.
- The Secretary in the United States of the Treasury, Bessent, commented television during the weekend that several commercial transactions continue with several Asian countries.
- Gold is maintained while merchants are starting to believe that tariff risks have reached a summit from now on.
The price of gold (XAU / USD) plunges under pressure from merchants, sending the price of ingots to $ 3,295 at the time of the editorial staff on Monday. The correction comes after a television interview in ABC with the secretary in the United States of the Treasury Scott Bessent on Sunday, who mentioned that several big cases were on the table of Asian countries. “If there are 180 countries, there are 18 important business partners, let's put China next to it, because it is a special negotiation, there are 17 important business partners, and we have a process in place,” said Bessent, and added “some of them evolve very well, in particular with Asian countries.”
In addition, Brooke Rollins, American agriculture secretary, said on Sunday that Trump administration had daily conversations with China on prices, by Reuters. Rollins noted that the current talks between the two nations and that commercial transactions with other nations were “very close”. It seems that more relaxation in tariff history could be in progress, which eliminates the wind of gold.
However, the drop in gold prices could be limited because the Chinese Foreign Ministry reiterated on Monday that President Xi Jinping and US President Donald Trump did not recently appeal. “The United States and China have not carried out negotiations or consultations on the prices,” noted the ministry.
In the rest of the rest of the week, the focal point will be in April Non -agricultural payrolls (NFP) Friday. The American data as a whole will attract much more attention as a barometer to assess the next stage of the Federal Reserve (Fed), the Federal Open Market Committee (FOMC) providing its next interest rate decision on May 7. American data last week have already started to show signs of a change, for example, sustainable products revolutionizing a substantial change in consumers' feeling.
Daily Digest Market Movers: market consolidation
- Toubani Resources, an African gold minor has capitalized at $ 61 million on Australian SECURITIES Exchange (ASX), is negotiated after obtaining commitments for a debt package of $ 160 million in a joint venture alongside a family office, reports Financial Review.
- The bond market of Thailand is on the right track for its best monthly entries in more than three years, helped by interest betting and a stronger baht due to the rise in gold prices, reports Bloomberg.
- China intensifies the examination of the billionaire of Hong Kong Li Ka-Shing to sell his Panama ports to a group supported by Blackrock Inc., while the American president Donald Trump asked for preferential treatment for American ships in the navigable path, adding to uncertainty as to the blockbuster agreement will occur.
Technical analysis of the price of gold: difficult to read
Although ingots soften again this Monday, traders and analysts always call that more increase is possible for precious metal. Although several commercial transactions are on the table and that the negotiations underway, the American president Trump said on Friday that a delay on the exemption from the prices is not discussed at the moment. Meanwhile, rhetoric between China and the United States does not show signs of real talks after the Chinese retailer, Shein, has raised its prices for American markets by more than 100% to transmit tariff import costs also the American customer.
The daily pivot point at $ 3,318 is the first obstacle to recover this Monday. From there, it is quite stretched at $ 3,424 for having reached resistance R1. The top of all time at $ 3,500 will be an upward firm ceiling, which makes the R2 resistance to $ 3,529 an almost implausible level to reach this Monday.
Upwardly, the S1 support provides a cushion at $ 3,266, converges roughly with a minimum of last week of $ 3,260. Further on, the central technical floor almost $ 3,245 (April 11) comes into play. Finally, S2 support at $ 3,213 should prevent any additional slowdown at pivot level at $ 3,167 (April 3).
XAU / USD: Daily table
GDP FAQ
The gross domestic product (GDP) of a country measures the growth rate of its economy over a given period, generally a quarter. The most reliable figures are those that compare GDP in the previous quarter, for example, Q2 of 2023 vs Q1 of 2023, or at the same period of the previous year, for example Q2 of 2023 vs Q2 of 2022. The annualized quarter figures extrapolate the growth rate of the quarter as if it were constant for the rest of the year. These can be misleading, however, if temporary shocks have an impact on growth in a quarter, but it is unlikely that it will last all year round – like the one occurred in the first quarter of 2020 at the start of the cocoped pandemic, when growth has dropped.
A higher GDP result is generally positive for the currency of a nation, because it reflects an upright economy, which is more likely to produce goods and services that can be exported, as well as to attract higher foreign investments. Likewise, when GDP falls, it is generally negative for money. When an economy grows, people tend to spend more, which leads to inflation. The country's central bank must then set up interest rates to combat inflation with the side effect of attracting more capital entries from global investors, thus helping the local currency to assess.
When an economy increases and GDP increases, people tend to spend more, which leads to inflation. The country's central bank must then set up interest rates to combat inflation. Higher interest rates are negative for gold because they increase the opportunity cost to maintain gold in relation to the place of money in a cash deposit account. Consequently, a higher GDP growth rate is generally a lowering factor for the price of gold.
