- Gold prices shrink on Wednesday amid some US dollar purchase.
- It increases the positive tone of risks on the precious precious metal.
- Trade tension, recession fears in the United States, and cut bets in the nutrition rate help reduce losses.
The price of gold (Xau/USD) is struggling to take advantage of the movement of the previous day and attract some sellers during the day during the Asian session on Wednesday. The US dollar (USD) restores a positive traction and returns to nearly three weeks on Tuesday. This, in addition to a generally positive tone around stock markets, acts as a wind that is hostile to precious minerals.
However, the uncertainty about US President Donald Trump’s plans is called mutual tariffs next week to help the price of $ 3,000. Regardless of this, Bets will resume the Federal Reserve (Fed) soon the price cutting course, amid fears of stagnation in the United States, may prevent merchants from putting aggressive, aggressive stakes around the non -returning yellow metal.
Daily Digest Market Movers: It seems that gold price traders are not detailed amid mixed basic signals
- The US dollar fell from the highest level in approximately three weeks after the data issued on Tuesday showed that the US Consumer confidence index in the Conference Council decreased for a fourth consecutive month, to a low level for a period of four years of 92.9 in March. The survey also revealed that the expectation index decreased to 65.2, or the lowest level in 12 years and much less than the 80 threshold, which usually indicates the recession forward.
- This comes after the Federal Reserve last week reviewed its view of growth amid uncertainty about the impact of US President Donald Trump’s policies. Moreover, reports that the mutual tariff in the United States scheduled to be imposed on April 2 will be more targeted to facilitate inflation concerns, and should allow the US Central Bank to retain rates and benefit from the price of unrestricted gold.
- In fact, the Federal Reserve indicated that it will provide discounts at the interest rate of 25 basis points by the end of this year. However, markets are pricing in the possibility that the US Central Bank will reduce borrowing costs in June, July and October Policy meetings. This overwhelms the shouting comments from the Federal Reserve Governor, Cogler, saying that it supports interest rates to keep steadily for some time.
- Meanwhile, Trump imposed a secondary tariff on Venezuela and said that any country that buys oil or gas from Venezuela will face a 25 % tariff when trading with the United States. Moreover, Trump is expected to announce the so-called reprisal definitions-which will compensate for the fees on American goods, and is scheduled to enter into force on April 2-about 15 major commercial partners in the United States, making investors on the edge.
- Russia and Ukraine have reached an agreement to stop military strikes in the Black Sea and with an energy infrastructure after negotiations in which the United States mediates. Regardless of this, the latest optimism for Chinese motivation that aims to enhance consumption is still supportive of a generally positive tone around stock markets. This hinders xau/USD bulls from putting aggressive bets.
- Traders are now looking to issue the orders of the American good commodities on Wednesday, which, along with the speeches conducted by influential FOMC members, must provide some motivation for the US dollar and the commodity. However, the focus will continue to be attached to the PE PE PC (PCE), which can provide signs about the Federal Reserve Path and Payment of precious metal.
The price of gold can estimate more while the psychological axis support is $ 3000
From a technical perspective, summer flexibility near the $ 3,000 sign and subsequent action, along with positive oscillators on the daily chart, indicates that the lower gold -price path is the upward trend. Some follow-up through the purchase that exceeds the height of the swing, about 3,036 dollars, will reaffirm the constructive expectations and raise the Xau/USD pair to the peak at all, about 3,057-3,058 Zone that was touched last week.
On the other hand, the 3000 dollar sign should continue to protect the direct passive side of the gold price and operate as a main pivotal point. The convincing break below may lead to some technical sale and withdraw Xau/USD pair to the area of ​​2982-2,978 dollars. Corrective falls can extend towards the following relevant support near the resistance stop of 2,956 to $ 954.
The risks of feelings common questions
In the world of financial terminology, the two terms are widely indicated by “risk” and “risk” to the level of risks that investors in the stomach want during the aforementioned period. In the “risk” market, investors are optimistic about the future, and therefore they are more willing to buy risky assets. Relatively modest.
Usually, during periods of “risks”, stock markets will rise, most goods-with the exception of gold-value, will benefit from positive growth expectations. The currencies of countries that are a source of heavy goods are enhanced due to increased demand and the height of encrypted currencies. In the “risk” market, the bonds-especially the major government-golden barking bonds, and safe clips such as the Japanese yen, the Swiss franc and the US dollar.
The Australian dollar (AUD), the Canadian dollar (CAD), the New Zealand dollar (NZD) and the small FX such as RUBLE (RUB) and Rand South African (Zar), tend to rise in the “risk” markets. This is because the economies of these currencies are largely dependent on the exports of the basic commodity for growth, and the goods tend to rise in prices during the risk periods. This is because investors expect more demand for raw materials in the future due to an increase in economic activity.
The main currencies that tend to rise during “risk” periods are the US dollar (US dollar), Japanese yen (JPY) and Swiss franc (CHF). The US dollar, because it is the world’s reserve currency, and because investors in times of crisis buy the debts of the US government, which are safe because the largest economy in the world is unlikely to fail to pay. Elaine, from increasing demand for Japanese government bonds, because a high percentage is kept by local investors who are unlikely to get rid of them – even in a crisis. The Swiss franc, because strict Swiss banking laws provide investors to protect capital.
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