In the US-China negotiations, the price of gold while cheering the markets focuses above $ 3,300
- The XAU/USD is traded at $ 3,328 with an increase of 0.10%after jumping to $ 3,300 intraday Low.
- Positive US-China trade talks in London remove the risk appetite and strengthen stocks.
- The wavy price action appears on Wednesday, as the US CPI data is important.
Gold Price, because negotiations between the US (USA) and China seem to be good, the US stocks improves the risk appetite among investors who are further rising, while it is clinging to modest gains on Tuesday after a one -day lower level near a $ 3,300 figure. XAU/USD is traded at $ 3.328 with an increase of 0.10%.
The market mood is supported by the re -merger between the US and Chinese officials in London. In the meantime, merchants for May for the last US Consumer Price Index (CPI) figures to be published as the price action in the financial markets remain wavy. Estimates show that prices are probably increased and US households felt the effect of tariffs by Trump administration.
Therefore, the federal reserve (FED) may remain in waiting and visual mode by keeping interest rates between 4.25-4.50%.
The US Dollar Index (DXY), which follows the value of the dollar in the face of a peer basket, recovers after reaching 98.86 per day and increased by 0.06% at 99.07.
According to the National Independent Federation (NFIB) optimism index, the US Economic Program on Tuesday revealed that small enterprises developing in May grew more optimistic compared to the figures that arose in April.
Daily Digest market carriers: Golden Price keeps it intact in the middle of US Treasury returns
- The US remains constant at 4.474%. The US real yields remained unchanged at 2.16%and closed bullion price progress.
- The NFIb Index rose from 95.8 to 98.8 in April in April and the index took over its long -term average. Edition has completed a four -month -old drawing and emotion line for small enterprises for the US due to uncertainty about tariffs.
- If the negotiations between Washington and Beijing give a positive result, it can push investors to risky assets such as stocks. However, the release of inflation figures for the US may close the outlets from the bottom.
- The US CPI is expected to rise from 2.3% to 2.5%, and core figures are expected to rise from 2.8% to 2.9%.
- Geopolitical tensions remained high because US President Trump told Fox News that Iran had become much more aggressive in nuclear talks. This can clean up the way to test the $ 3,350 in the short term by raising gold prices, along with Russia’s claim to control the region in the east-middle region of Ukraine.
- Money markets argue that traders pricing on 43.5 basis and earn money towards the end of the year, according to the main market terminal data.
Source: Main market terminal
XAU/USD Technical View: Gold Price 3,300 $ -3.350 $ Corridor
From a technical point of view, the XAU/USD found a strong support of around $ 3,290-300, provided by a support tendency with the lowest level of the current week. Momentum, the relative power index (RSI) continues to rise further.
If the XAU/USD is cleaned in a $ 3,350, it opens the door for a movement towards $ 3,400. More power is $ 3,450 and the highest (ATH) of all time is $ 3,500.
On the Flip side, gold, which is below $ 3,300, plans the 50 -day simple moving average (SMA) $ 3,265 and then challenges key support levels such as 3 April height, 3 April height.
Golden FAQ
Since gold is widely used as a means of value and change, it has played a key role in human history. Currently, in addition to its brightness and jewelry, precious metal is widely seen as a safe asset, that is, it is considered a good investment in turbulent times. Gold is also seen as a fence against currencies against inflation and depreciation because it is not based on a particular exporter or government.
Central banks are the largest gold holders. In order to support currencies in turbulent times, central banks tend to diversify and purchase gold to increase the perceived power of the economy and currency. High gold reserves can be a source of trust for a country’s payment power. According to World Gold Council data, central banks added 1,136 tons of gold worth about 70 billion dollars to their reserves in 2022. This is the highest annual purchase since the registrations started. Central banks of developing economies such as China, India and Türkiye are rapidly increasing their gold reserves.
Gold has an inverse correlation with both large reserves and safe assets, US Dollar and US treasures. The dollar tends to rise in the depreciation and allows investors and central banks to diversify their presence in turbulent times. Gold is also contrary to risk assets. While a rally on the stock market tends to weaken the gold price, sales in the risk markets tend to support valuable metal.
The price can act due to a wide range of factors. Geopolitical instability or a deep fear of stagnation can rapidly increase the price of gold due to safe protected status. As an inefficient asset, gold tends to rise with lower interest rates, while the higher cost of money usually gives weight on the yellow metal. Nevertheless, most moves depend on how the US dollar (USD) behaves as priced as dollar (XAU/USD). A strong dollar tends to control the gold price, while a weaker dollar raises gold prices.
