- The price of gold meets a new offer on Monday in the middle of the optimism of the American-China trade agreement.
- A drop in gold consumption in China and a modest USD increase also weighs on the goods.
- The uncertainties linked to the trade and the betting of the Fed rates guarantee the prudence of the XAU / USD bears.
Gold Price (XAU / USD) maintains its tone offered throughout the Asian session on Monday and is currently negotiated below the $ 3,300 mark, down 0.75% for the day. Despite mixed signals from the United States and China, investors hope for the potential de-escalation of tensions between the two largest economies in the world. In addition, a drop in Chinese gold consumption in the first quarter of 2025 turns out to be a key factor undergoing demand for traditional safe.
Meanwhile, the prospects for the softening of more aggressive policies by the Federal Reserve (Fed) fail to help the US dollar (USD) to rely on the strong recovery gains last week from a low number of years – marking its first weekly gain since March. This, as well as the uncertainties linked to trade and persistent geopolitical risks, help to limit additional losses for the price of gold. Consequently, it will be prudent to wait for a high follow -up sale before positioning for any significant corrective drop in the peak of all time.
Daily Digest Market Movers: Bulls at golden prices remain in the middle of the hopes of a potential American-Chinese trade agreement
- China has exempted certain American imports from its 125% prices imposed earlier this month in response to 145% American prices on Chinese imports. This comes in addition to the reaffirmation of US President Donald Trump according to which trade discussions were underway with China and fuel the hope of a rapid de -escalation of the trade war between the two biggest economies in the world.
- China has not yet confirmed the exemptions and denies the current price talks. Meanwhile, Trump's changing announcements and the fears of the global recession are under demand for the price of gold on females.
- China Gold Association said on Monday that the country's gold consumption fell 5.96% in annual sliding to 290.492 tonnes in the first quarter of 2025. In addition, high prices continued to limit the demand for gold jewelry, which dropped from 26.85% in annual shift to 134.531 tonnes. Meanwhile, the consumption of gold and parts bars increased 29.81% to 138.018 tonnes.
- The US dollar preserves the recovery gains last week, although it lacks follow -up among the bets according to which the Federal Reserve will resume its rate reduction cycle in June and the drop in loan costs from a full point in 2025.
- North Korea has confirmed for the first time that it had sent troops to fight in the Russian-Ukraine conflict. Trump urged Russia on Sunday to stop his attacks in Ukraine while US Secretary of State Marco Rubio said the United States could move away from peace efforts if he did not see any progress. This, in turn, justifies a certain caution for the XAU / USD bears.
- This week's investors will compare the publication of the main American macroelectric data, including the report on JOLTS job openings on Tuesday, US personal consumption expenses on Wednesday, and the non -agricultural pay report (PNF) on Friday. Data can provide more overview of the Fed policy perspectives and provide significant momentum to the goods.
The price of gold continues to show a certain resilience lower than the fibo of 38.2%. level; Bear await weakness less than $ 3,265 to $ 3,260
From a technical point of view, the lowering traders must wait for acceptance below the level of Fibonacci retracement of 38.2% of the last stage near the middle of $ 2,900, or the lower monthly swing before placing new bets. Some were sold below the immediate support of 3,265 to 3,260 will confirm ventilation and make the price of vulnerable gold to extend its recent corrective drop in the psychological brand of $ 3,500, or the peak of all time. The subsequent fall could lead to the precious metal to the level of retracement of 50%, around the region of $ 3,225, on the way to the $ 3,200 mark. A convincing break below the latter suggests that the goods exceeded in the short term.
On the other hand, the recovery attempt over the $ 3,300 brand could face a certain resistance near the Asian session, around the region of $ 3,331. Any additional element could still be considered an opportunity to sell and remain capped near the supply area of $ 3,366-368. The latter must act as a key central point, which if it is decisively erased should allow the price of gold to recover the $ 3,400 mark. The momentum could extend to 3,425 to 3,427 intermediate obstacles before the bulls try to conquer the psychological brand of $ 3,500.
American-Chinese trade faq
In general, a trade war is an economic conflict between two or more countries due to extreme protectionism at one end. This implies the creation of commercial barriers, such as prices, which cause counter-barriers, an increase in import costs, and therefore the cost of living.
An economic conflict between the United States (United States) and China began in early 2018 when President Donald Trump set trade obstacles on China, claiming unfair commercial practices and an intellectual property flight from the Asian giant. China has taken reprisal measures, imposing prices on several American products, such as cars and soybeans. Tensions intensified until the two countries signed the US-China phase trade agreement in January 2020. The agreement required structural reforms and other changes to the economic and commercial regime of China and pretended to restore stability and confidence between the two nations. However, the coronavirus pandemic has focused on the conflict. However, it should be mentioned that President Joe Biden, who took office after Trump, maintained prices in place and even added additional samples.
Donald Trump's return to the White House as 47th American president sparked a new wave of tensions between the two countries. During the 2024 electoral campaign, Trump has committed to imposing prices of 60% on China once he became his functions, which he did on January 20, 2025. With Trump back, the American-Chinese trade war is supposed to resume the untrings in the global supply chains, resulting in a reduction in investment, in particular investments, and food consumption.
