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- The price of gold is struggling to take advantage of its weekly gains registered over the past two days.
- Optimism about commercial talks between the United States and China is seen on the stability of the safe commodity.
- Investors are now looking for a decisive FOMC policy decision to obtain a new directional force.
The price of gold (Xau/USD) decreases sharply from a two -week rise in the previous day, as the announcement of commercial talks between the United States of China in Switzerland this week enhances investor confidence and undermines the traditional assets of safe. Meanwhile, some trading that re -placed it before the risks of the main central bank event helps US dollar (USD) to attract some buyers after a three -day loss chain, which exerts additional pressure on the commodity.
However, it seems that the US dollar bulls are reluctant in putting aggressive bets and chose to wait for more signals on the future interest path of the Federal Reserve (Fed). This, in addition to the ongoing geopolitical risks arising from the prominent Russia war and conflicts in the Middle East, should serve as the back wind of the price of gold. Consequently, it would be wise to wait for the results of the long -awaited monetary policy meeting for two days later on Wednesday.
Daily Digest Market Movers: The price of gold is pressed through a set of factors such as the trading decision away
- US Treasury Secretary Scott Beesen and Trade Representative Jameson Jarir will meet their Chinese counterparts in Switzerland on Saturday to discuss commercial and economic issues. This is the first direct talks since the United States imposed definitions on China and a step towards a trade war between the world’s largest economist.
- Meanwhile, US President Donald Trump said on Tuesday that he will review the administration’s senior commercial deals over the next two weeks to determine which of them must be accepted. However, these meters in the previous Trump statement that his administration can announce commercial deals with some countries as soon as this week.
- Moreover, Trump announced a 100 % tariff for films produced outside the United States and also indicated that he was planning to announce a new tariff for drug imports over the next two weeks. This keeps investors on the edge and may continue to work as a country with a price for armed gold in high geopolitical risks.
- A Kremlin spokesman says that Russia will adhere to its unilateral ceasefire plans between 8 and 11, but warned that an appropriate response will be provided immediately if Ukraine also did not stop the fire. Meanwhile, Russia and Ukraine exchanged 205 war prisoners each in an exchange of the United Arab Emirates.
- The Security Council in Israel unanimously agreed to a plan to expand the military attack in Gaza. The plan includes the invasion of the Israeli Defense Forces (IDF) and gradually deals with control over the lands of Gaza. Although no official details were announced, the officials said that the operation will not begin until after Trump’s visit to the Middle East next week.
- Investors are awaiting the Federal Reserve decision later on Wednesday. The accompanying monetary policy statement and chairman of the Federal Reserve will be examined by Jerome Powell’s comments at the press conference after the post -investigation recognition to obtain signals on the future rate path. This will push the demand for the US dollar and affect the unsuccessful yellow metal.
The technical preparation of bull gold prices is preferred and supports the prospects for the emergence of a decline purchase at lower levels
From a technical perspective, the collapse continued during the night through a horizontal barrier, which ranges between 3360 and 3665 dollars, and a sign of more than 3400 dollars was seen as a new operator for bulls. Moreover, the oscillator on the daily graph is comfortably holding in a positive area, indicating that the course of less resistant to gold is the bullish direction. However, the strong upward trend he witnessed since the beginning of this week stumbles near the resistance of 3430 to $ 3435. The aforementioned area should be a pivotal point, which can aim Xau/USD to challenge the peak that was ever touched in April and conquer the $ 3500 psychological brand.
On the other hand, you can find weakness without an area of 3,365-360 dollars some support near the round area of 3328-327 dollars $ 3300. Failure to defend the aforementioned support levels would negate positively in the short term Expectations And make Gold price exhibition. The downtown Xau/USD pair may withdraw to medium support from $ 3,265 to $ 3,260 on the way to an area of 3223-322 dollars, and returned last week, about $ 3,200.
Common Gold questions
Gold played a major role in human history, as it was widely used as a store for value and exchange. Currently, regardless of its brilliance and use of jewelry, the precious metal is widely seen as a safe asset, which means it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against currency decline because it does not depend on any specific source or government.
Central banks are the largest gold holders. In their goal to support their currencies at troubled times, central banks tend to diversify their reserves and buy gold to improve the powerful power and currency. High gold reserves can be a source of confidence to the dissolved country. Central banks added 1136 tons of gold worth $ 70 billion to their reserves in 2022, according to the data of the Golden Golden Council. This is the highest annual purchase since the start of the records. Central banks of emerging economies such as China, India and Turkey increase their gold reserves.
Gold has a counter -relationship with the US dollar and the United States Treasury, which is one of the main reserves and safe assets. When the dollar decreases, gold tends to rise, allowing investors and central banks to diversify their assets at turbulent times. Gold is inversely associated with the origins of the risk. The assembly in the stock market weakens the price of gold, while sales in the most dangerous markets tend to prefer precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of deep stagnation can escalate the price of gold due to its safe situation. As a lower asset than the return, gold tends to rise with low interest rates, while the high cost of money usually reaches the yellow metal. However, most moves depend on how the US dollar (USD) is behaved as the original is priced in dollars (Xau/USD). The strong dollar tends to maintain the price of gold -controlled gold, while the weakest dollar is likely to increase the price of gold.
