- The gold gets 2% as DXY decreases, even though the ISM PMI services indicate an elastic US economy.
- Trump has announced 100% tariffs on foreign films, Powell says not to be removed in advance but are urging rate cuts.
- Markets are fully price to Fed Hold on Wednesday; Powell's press conference is dedicated for policy signals.
Gold prices (xau/USD) United States (US) suggests that the economy remains stable. XAU/USD trading at $ 3,321 after bouncing off daily lows of $ 3,237.
The mood in the market improved following a report by the Institute for Supply Management (ISM) that service providers ensured the stability of the US economy. Data has introduced that prices are rising, noted by US president tariffs Donald Trump
This weekend, Trump announced 100% role in foreign -made films while saying that the Federal Reserve (FED) should have lower interest rates. He said he would not remove the Fed chair Jerome Powell Before his term ends in May 2026.
Trump added that the US is meeting in many countries, including China, and that its top priority is reaching a deal with Beijing.
Meanwhile, merchants are working for the Federal Reserve policy policy meeting Wednesday. The markets are fully priced at that the US central bank will keep rates unchanged, even if they look at the press conference of the Fed Chair Jerome Powell. Policy manufacturers will not update their forecasts until the June meeting, which may provide some clues about the financial policy.
Daily Digest Market Movers: The price of gold that does not agree with the increased US Treasury bond yield
- Bullion prices remain underpinned, though the US treasury bond increased. The US 10-year Treasury Note climbed a four and a half basis points by 4.35%. At the same time, the US actually rallied five BPS to 2.087%, as the US 10-year-old Treasury Inflation showed protected by securities.
- The ISM Services PMI rose to 51.6 in April, from 50.8 and defeated expectations of 50.6, which signed a moderate improvement in service sector activity.
- Interestingly, prices that pay sub-index have risen to 65.1-prolonged since February 2023-from 60.9, indicating a reacceleration to input inflation pressures.
- Last week the US nonfarm payroll figure for April exceeded estimates despite trailing March numbers, suggesting that the labor market remains stable. It is noteworthy that the unemployment rate does not change to 4.2%, justifying the Fed's stance of the wait-and-see mode regarding the financial policy.
Xau/USD Technical Outlook: The price of gold challenges to challenge $ 3,350
Gold price umprend continued while price action today confirmed a 'bullish harami' two-candle chart Pattern, indicating that the bulls accumulate steam. Kamag -child Index Index (RSI) further confirmed the latter, as the RSI line is aimed upward.
Therefore, traders will deal with basic resistance levels such as $ 3,350, followed by a $ 3,400 figure. If exceeded, the next stop is $ 3,450 and $ 3,500. Conversely, if the seller drags the XAU/USD spot price below $ 3,300, find a test on May 1 of $ 3,202, leading April 3 high support for $ 3,167.
US-China Trade War Faqs
In general, a trade war is an economic conflict between two or more countries due to intense protectionism at one end. This indicates the creation of trade barriers, such as tariffs, resulting in counter-barriers, increasing import costs, and therefore the cost of living.
An economic conflict between the United States (US) and China began early in 2018, when President Donald Trump set trade barriers in China, claiming unfair commercial skills and theft of intellectual ownership from the Asian giant. China has taken revenge action, which imposes tariffs on many US goods, such as vehicles and soybeans. The tension increased until the two countries signed the US-China Phase One Trade Deal in January 2020. The agreement required structural reforms and other changes to the Chinese economic and trade regime and pretended to restore stability and trust between the two countries. However, the coronavirus pandemic took the focus on chaos. However, it is worth mentioning that President Joe Biden, who was in office after Trump, kept the tariffs in the area and added some additional levies.
Donald Trump's return to the White House while the 47th US president caused a fresh wave of tension between the two countries. During the 2024 election campaign, Trump promised to impose 60% tariffs in China once he returned to the office, which he made on January 20, 2025. By Trump back, the US-China trade war was intended to continue where it was left, with title policies of title affecting the global economic landscape among the interruptions Global supply chain, resulting in a reduction in spending, specific investment, and direct feeding to consumer index prices.
