- The price of gold will restore initial losses and trade over $ 3,300 on Friday.
- The US-UK trade agreement is intended to rejoice in the markets, not the “full and in-depth” commercial agreement, as President Trump announced.
- Gold sees a safe impaired influx over the weekend with a high bet.
Gold (XAU/USD) just jumps to 1% shy on Friday and goes back from $ 3325 during writing. The price of precious metal is higher because the markets call a trade transaction announced on Thursday between the United States (USA) and the United Kingdom (Nothing Burger “. The US-UK trade transaction gives the United States a better market access and a faster customs process for export to Britain, but is below the “complete and thorough” contract. At the same time, 10% of tariffs are in place and Britain is forced to take $ 10 billion orders with Boeing, Bloomberg reports.
The fact that this initial US is such a well-thought-out trade transaction is raising great questions and uncertainty just before the Chinese-US summit, which takes place in Switzerland over the weekend. Before this meeting, the Chinese Minister of Commerce has once again expressed its demands that the tariffs should be opened before the trade talks. In the meantime, US President Donald Trump hinted overnight that people should now go and buy stocks, Reuters reports.
Daily Digest Market Movers: This is not a trade transaction at all
- President Trump also said overnight that he believed that the trade talks with China this weekend would lead to tangling. The President said he was considering reducing the 145% tariff for many Chinese goods when the discussions went well. Meanwhile, Beijing repeated his call for cancellation of China's unilateral obligations in the US, Bloomberg reports.
- People who are familiar with the preparation of talks starting on Saturday in Geneva, led by US Treasury secretary Scott Besent and China Vice President He Life, claims that the US side has set the goal of reducing tariffs below 60% below 60% as they find that China can be ready. The progress of the planned discussions during the two days may have applied these cuts as soon as next week, they said, Bloomberg reports.
- “The purchase of gold on DIPS is still in Vogue, which has so far restricts negative moves despite the demand for safe venom to dry the US-UK trading degree,” said Market analyst Tim Waterer, Commander of the KCM Trade, said Reuters.
Gold Price Technical Analysis: It all ends with tears
The stakes rose high this weekend, after President Trump told people to go out and buy shares when talking about US-UK trade transactions, as it would be the first of many. I'm not sure if the recommendation was involved in the US-China negotiations this weekend, although Trump will clearly take this one of the expert events into a springboard to get the momentum. However, all connection issues should support the safe refuge demand due to increasing uncertainty.
The first obstacle this Friday will be upside down to Daily Pivot to $ 3,336. If you will later follow a more tracking sequence during the day, look for a R1 obstacle at $ 3,384. The upside down of the R2 obstacle is $ 3,462, and it may be a little too far away at today's price.
The downside is the S1 support at a price of $ 3,58 for the first line of defense. The 3,455 dollar guard dog is a much stronger floor than a technical point of view. If it breaks under pressure, the game should come for $ 3,210, which is S2 support.
XAU/USD: daily chart
Golden FAQs
Gold has played a key role in the history of a person because it has been widely used as a value and medium. Nowadays, in addition to the use of shine and jewelry, precious metal is considered to be a widely used asset, which means that it is considered a good investment in turbulent times. Gold is also widely considered to be a risk against inflation and depreciated currencies as it does not depend on any particular issuer or government.
Central banks are the largest gold owners. For their own purpose, to support their currencies in a stormy time, central banks tend to diversify their stocks and buy gold to improve the perceptible strength of the economy and currency. High golden reserves may be a source of trust in the country's insolvency. According to the World Gold Council, central banks added $ 1,70 billion to $ 1,136 tonnes of gold in their stocks in 2022. This is the highest annual sequence after the record. Central banks from such an evolving economy, such as China, India and Turkey, rapidly increase their gold supplies.
Gold has an inverse correlation with the US Dollar and the US Treasury, which are the main assets of both reserve and safe assets. When the dollar is depreciated, gold tends to rise, allowing investors and central banks to diversify their property in turbulent times. Contrary to correlation with risk assets, gold is also gold. The demonstration in the stock market tends to weaken the price of gold, while precious metal is sold in more risky markets.
The price can move due to a variety of factors. Geopolitical instability or fear of deep recession can quickly escalate the gold price due to its safe impairment. As an asset without yield, gold tends to rise at lower interest rates, while higher money costs usually weigh yellow metal. However, most moves depend on how the US dollar (USD) behaves when assets are valued (XAU/USD). A strong dollar tends to keep the gold controlled price, while a weaker dollar is likely to push gold prices.
