Gold struggles for fixed fixed direction; Flat lines near the record high amid mixed signals
- Gold price is still well supported by the uncertainty surrounding Trump’s aggressive policies.
- More bets to reduce the federal reserve rate benefit more than the yellow metal, although the covers are a significant increase in the US dollar.
- The improvement in global risk morale would ensure caution of some Xau/USD.
The price of gold (Xau/USD) remains confined to a narrow trading range near the peak at all during the first half of the European session on Friday and it appears to be about to record strong gains for the second week in a row. Investors are still concerned about the potential economic repercussions of US President Donald Trump’s aggressive policies. This, in addition to the bets that the Federal Reserve (FED) will reduce interest rates several times in 2025, it was found that they are major factors that act as an illustrative element of unrestricted yellow metals.
However, Xau/USD bulls refrain from putting new bets amid a positive risk tone, supported by positive comments from the United States and Canada’s commercial talks and reports that there will be enough democratic voices to avoid the closure of the US government. Regardless of this, the additional recovery of the US dollar (USD) is one of the lowest multi -month -long levels on Tuesday contributes to determining the bullish direction of the price of gold. However, the basic background indicates that a less -resistant course is still in the upward direction.
Daily Digest Market Movers: The price of gold is merged before the next stage amid increasing commercial tensions, and reduce the interest rate.
- US President Donald Trump raises the bet in the war of tariffs, saying that he will impose a 200 % duty on European wine and cucopnies unless the European Union removes additional fees on American whiskey. Trump earlier threatened to respond to any counter measures announced by the European Union.
- This comes in addition to Trump’s tariff by 25 % on all imports of steel and aluminum, which entered into force on Wednesday, prompting concerns about the risk of more escalation in the tariff war between the United States and its higher commercial partner, and pushing the safe gold price to a new record on Friday.
- Traders intensify their bets that the Federal Reserve will have to reduce interest rates this year by more than expected, amid an increasing possibility of economic shrinkage on the back of the aggressive policies of the Trump administration. Expectations were raised by inflation figures in the United States this week.
- In fact, the data released on Wednesday showed that the Consumer Prices Index in the United States (CPI) rises less than expected, by 2.8 % year on year in February, a decrease from 3 % in the previous month. Moreover, the basic scale fell to an average of 3.1 % on an annual basis of the 3.3 % increase registered in January.
- In addition, the US producers’ price index (PPI) did not change in February, and the annual rate slowed to 3.2 % of 3.7 % in January. This referred to the signs of relieving inflationary pressure in the United States, which, along with the labor market in the United States, supports the prospects for more mitigation by the Federal Reserve.
- Traders are currently pricing three basis points for interest rate discounts in all of June, July and October. This, in turn, is seen as another factor that supports the unsuccessful yellow metal, although a mixture of factors retains the cover on other gains.
- Global risk morale gets a slight lifting in response to some positive comments outside the White House and Canadian officials. Doug Ford, Prime Minister of Ontario, said that the meeting with US Minister of Trade Howard Lootnick reduced the temperature in the ongoing trade war.
- Moreover, Russian President Vladimir Putin expressed his police support for a 30 -day ceasefire proposal presented by the United States and Ukraine. This, in addition to reports that there will be enough democratic voices to avoid the closure of the US government, which enhances investor confidence.
- Meanwhile, the US dollar index (DXY), which tracks Greenback against the currency basket, is its recovery from the lowest level since October 16 for the third consecutive day. This also contributes to determining the bullish direction of the commodity during the Asian session.
- Traders are now looking for the initial version of the Memorine and Invulation Index in Michigan, the United States for short -term opportunities. The market concentration will then turn into a two -day decisive monetary policy meeting from next Tuesday.
The bulls remain from the price of gold on the margin, amid the circumstances that overwhelm their peak on the weekly graph; Uneously ready to give up yet
From a technical perspective, this week can be considered through the horizontal resistance of 2928 to 930 dollars and exceeding the height of the previous record, about $ 2956, as a new operator for bulls. However, the RSI indicator on the daily chart is still close to the peak purchase area and makes wisdom waiting for some monotheism in the near term or a modest decline before the next stage. However, this broader setting indicates that the less resistant path for the price of gold remains on the upper side and supports the chances of extending the firm upward trend for about three months.
Meanwhile, any new buying slide is likely to attract new buyers near the $ 2956 region, which can decrease the price of gold below to a horizontal resistance point of 2930 to $ 928. The latter should be a major pivotal point and a convincing break below may pay some technical sale, which must pave the way for the deeper losses. The Xau/USD pair may then speed up the 2900 dollar number on its way to the $ 2,880, or the weekly LOW touched on Tuesday.
The risks of feelings common questions
In the world of financial terminology, the terms used on a large scale “risks” and “risk” indicate 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 more willing to buy risk -framed assets. In the “risk” market, investors start playing it safely because they are concerned about the future, thus buying less risky assets more confirming than bringing back, even if they are 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.
