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- Gold price recovery leads to a significant rise as the US -Chinese trade war supports safe -term demand.
- The American recession, severed nutritional bets, and the declining US dollar also supports Xau/USD pair.
- The tone of the positive risk may put the precious metal amid the daily relative strength index that overlooks the peak.
The price of gold (Xau/USD) is traded with a mild negative bias with a little less than fresh peak at all during the Asian session on Monday, with bulls stopping to a break amid the excessive conditions at its peak daily in the daily daily. table. Moreover, further recovery contributes to the feelings of global risks to the formation of the bullish trend of the commodity. However, an acute escalation of trade tensions between the United States of China may continue to support the precious mineral.
Meanwhile, the US dollar (USD) shouts near its lowest level since April 2022 amid weak confidence in the American economy and the growing acceptance Federal Reserve (FED) will resume a price cutting course for her soon. Moreover, the US Central Bank is expected to reduce borrowing costs at least three times this year, which may turn into a year
Daily Digest Market Movers: Bulls Gold PRICE retains control amid fears of the trade war between the United States and China
- China increased its tariffs on US imports to 125 % on Friday in response to US President Donald Trump’s decision to raise Chinese goods to 145 %. This, in turn, adds to the market concerns that the trade war that escalates the largest economy in the world will weaken global economic growth and raise the price of safe gold to a new peak at all.
- Meanwhile, the unusual rise in the American treasury yield indicates that investors are throwing US government bonds as weakening in the American economy. In addition, the possibilities of facilitating the most aggressive policy by the Federal Reserve (Fed), which are enhanced by US consumer inflation data issued last week, maintains depression in US dollars and increases the benefit of the commodity.
- Last Thursday, the US Labor Statistics Office reported that the main consumer price index (CPI) decreased by 0.1 % in March, and the annual interest rate fell sharply to 2.4 % of 2.8 % in February. Moreover, the basic consumer price index, which raises food and energy, increased by only 0.1 % over the previous month and got 2.8 % for 12 months that ended in March, which represents its lowest rate in nearly four years.
- Traders are now pricing 90 basis points of discounts in the prices of the Federal Reserve by the end of the year 2025, which may contribute more to leading flows towards the non -immune yellow metal. Moreover, investors expect the customs tariff to push inflation up in the coming months. This may increase the Xau/USD mode as a hedge against high prices and support for appreciation in the short term.
- The market participants this week will check the comments closely from the influential FOMC members, including the Federal Reserve Chairman Jerome Powell on Wednesday, to obtain signals about the future path of the rate. Regardless of this, the monthly retail sales numbers in the United States, also due on Wednesday, will lead the US dollar request and provide some calm motivation for precious metals during the last half of the week.
The price of gold is integrated in the excessive daily RSI at its peak; Negative potentials seem limited
From a technical perspective, the daily relative strength index (RSI) holds a little 70 marks and indicates slightly excessive conditions. Consequently, it would be wise to wait for some in the near term or a modest decline before merchants start locating to get a new leg. At the same time, any corrective segment can be considered an opportunity to buy near the round number $ 3200, which in turn should help reduce the negative aspect of gold The price is near the 3,168-3,167 dollar area. The latter should be a strong base and a main pivotal point for traders in the short term.
Common questions between the United States of China for war
In general, the trade war is an economic conflict between the two countries or more due to severe protectionism at one party. It involves the creation of commercial barriers, such as customs tariffs, which lead to anti -import barriers, and to import costs, and thus the cost of living.
The economic conflict between the United States (the United States) and China began in early 2018, when President Donald Trump laid commercial barriers on China, claiming unfair commercial practices and theft of intellectual property from the Asian giant. China has taken retaliatory measures and imposed a tariff on multiple American goods, such as cars and soybeans. Tensions escalated until the two countries signed the commercial deal for the first stage of the United States of China in January 2020. The agreement requires structural reforms and other changes on the economic and commercial system in China and demonstrated by restoring stability and confidence between the two countries. However, the Koronavus virus’s pandemic took the focus from the conflict. However, it should be noted that President Joe Biden, who took office after Trump, maintained the customs tariff in his place and added some additional fees.
Donald Trump’s return to the White House as an American president ignited 47 new waves of tensions between the two countries. During the 2024 election campaign, Trump pledged to impose 60 % of the customs tariff on China once he returns to his position, which he did on January 20, 2025. With the emergence of Trump, the American trade war and China aim to resume the place where it was left, with policies for corrections that affect global economic records in nutrition in nutrition.
