- The price of gold continues to expand a new record for the fourth day in a row on Tuesday.
- Fears about the expansion of the world trade war and geopolitical risks enhance the commodity.
- The federal reserve reduction bets weigh the dollar and benefit more than the non -returning yellow metal.
The price of gold (Xau/USD) is declining slightly after touching one of the fresh highlands at all on Tuesday with the bulls stopping the break and choosing to wait to announce the mutual tariff for US President Donald Trump. In addition, a positive tone works around Asian stock markets as a counterpart of the commodity amid the conditions that are clarified on the daily chart. However, the ongoing concerns about the potential economic repercussions of the aggressive trade policies of the Trump administration are still supportive of the tone of giving surrounding safe alloys on the fourth consecutive day.
Meanwhile, investors are now convinced that the slowdown on customs tariffs in American economic growth can force Federal Reserve (Fed) to resume the price cutting cycle soon. This keeps US Treasury bonds back to depression and fails to help the US dollar (USD) attract any meaningful purchase, which in turn, must provide additional support for the price of unrestricted gold. Consequently, any corrective decline with the meaning of the opportunity to buy, and is likely to remain moderate as traders are looking for important American macro versions for this week.
Daily Digest Market Movers: Bulls Gold Bulls turns into caution in a positive risk tone, before Trump’s mutual tariff
- The intermittent American president hopes that the drawings will be limited to a smaller group of countries with greater trade imbalances, and said on Sunday that mutual definitions will mainly include all nations. This comes on Trump’s 25 % tariff on steel, aluminum, and auto imports, raising fears of the expansion of a medium global trade war.
- Moreover, investors are now convinced that the slowdown on customs tariffs in American economic activity would force Federal Reserve (Fed) to resume the price cutting course soon, despite sticky inflation. This, in turn, helps the price of safe gold to record its strongest quarter since 1986 and has reached a new standard on Tuesday.
- The markets are currently pricing in the possibility of the US Central Bank to reduce borrowing costs by 80 basis points by the end of this year. This maintains the returns of US Treasury depression, which in turn does little to help the US dollar attract any meaningful buyers and affects the non -fortified yellow metal.
- On the geopolitical front, Ukrainian officials said early on Monday that Russia bombed the city of Kharkiv in northeastern Ukraine on the second night in a row. Moreover, Ukraine President Volodimir Zelinski said that Russia fired more than 1,000 drones last week and called for a response from the United States and other allies.
- Israel ended earlier this month the ceasefire with the Hamas armed group, and the air and land strokes were renewed. In addition, the Israeli army issued the orders of the collective evacuation of Rafah, indicating a possible new ground process in the city, which raised the risk of increasing the escalation of tensions in the region.
- Traders are now looking at the main American macro versions for this week, scheduled at the beginning of a new month, starting from Jolts and ISM Manufacturing PMI on Tuesday. This will be followed by the ADP report on Wednesday, the ISM service managers in the United States on Thursday, and the US -not -cultivated salary (NFP) on Friday.
- However, the focus will remain attached to the announcement of the imminent mutual definitions of Trump later today, at 19:00 GMT. This will play a major role in influencing the feelings of the wider risks and dollar price dynamics, which in turn must provide some meaningful motivation for the Xau/USD husband.
The technical preparation for gold prices supports additional gains; On Monday, a sign of $ 3,100 in play
From an artistic perspective, the daily relative strength index (RSI) exceeds 70 marks and indicates excessive conditions in the peak. This, in turn, makes it wisdom waiting for some monotheism in the short term or a modest decline before traders start locating for any other appreciation step. However, the penetration overnight above the sign of $ 3,100 and the subsequent move up indicates that the less resistant path of the gold price remains to the upward trend. Thus, any corrective decline can be considered an opportunity to buy and is likely to remain limited.
Meanwhile, the 3,128-3,127 region can be an immediate support before the round number of $ 3100. The convincing rest to the bottom of the last may lead to some long suffix and withdraw the price of gold less than 3,076 dollars, or decrease the swing during the night, towards the resistance stop point of 3,057-3,058 dollars on its way to the support area of 3,036-3,035 dollars. This is followed by a $ 3,000 psychological mark, which should serve as a strong base for the Xau/USD point and the main axial point for short -term traders.
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