GOLD down but not out; all eyes on US-China trade talks
Gold price hits fresh weekly lows below $3,300 early Friday.
The US Dollar firms up on US-UK trade deal, profit-taking ahead of US-China trade talks.
Gold price needs a daily close below 21-day SMA at $3,307 to negate near-term bullish bias.
Gold price is flirting with weekly lows below $3,300 early Friday as the US Dollar stands tall on renewed optimism on the US trade deals front.
The US Dollar stands tall against its major currency rivals as worries over a potential US economic downturn ease following the announcement of a “breakthrough deal” by US President Trump and British Prime Starmer on Thursday.The US-UK trade deal raised hopes that US trade agreements with other countries are in the offing, especially as the US and China begin their first high-level trade talks in Switzerland on Saturday.
US Treasury Secretary Scott Bessent and Chief Trade Negotiator Jamieson Greer will meet with China’s Vice Premier, He Lifeng, over the weekend.The revival of the King Dollar has exerted downward pressure on the Gold price, but it remains to be seen if sellers can retain control in the day ahead. Markets may likely take profits off the table on their USD and Gold positions as the looming US-China trade risks approach.
Investors could also see bargain hunting in the bright metal as geopolitical risks globally remain elevated. Analyst said, “Russia and Ukraine both reported attacks on their forces on the first day of a three-day unilateral ceasefire called by Russian President Vladimir Putin,” “Furthermore, Israel’s escalation with Iran-backed Houthis in Yemen and fears of a broader military conflict along the India-Pakistan border keep geopolitical risks in play,” Haresh added.
Adding to this, a hit to the Chinese trade balance in April due to the probable impact of US tariffs could also bode well for the traditional safe haven. Meanwhile, China’s expansion to its Gold reserves for the sixth straight month also serves in the interest of Gold buyers.
Daily technical analysis
Gold price fell sharply after facing rejection once again above the $3,400 barrier. In doing so, Gold price has breached the critical 21-day Simple Moving Average (SMA) at $3,306.However, the 14-day Relative Strength Index (RSI) has stalled its descent while defending the midline, suggesting that a rebound could be in the offing.
Gold price needs to recapture the $3,400 mark, above which buyers must establish a firm foothold above the two-week high of $3,440. The next topside target is at the record high of $3,500.
On the downside, Gold sellers yearn for a daily closing below the 21-day SMA at $3,306, which could negate any bullish potential in the near term, opening up a fresh downtrend toward the 50-day SMA at $3,129.Ahead of that, the static support at $3,260 and the May 2 low of $3,223 will be challenged.
GOLD down but not out; all eyes on US-China trade talks
Gold price is flirting with weekly lows below $3,300 early Friday as the US Dollar stands tall on renewed optimism on the US trade deals front.
The US Dollar stands tall against its major currency rivals as worries over a potential US economic downturn ease following the announcement of a “breakthrough deal” by US President Trump and British Prime Starmer on Thursday.The US-UK trade deal raised hopes that US trade agreements with other countries are in the offing, especially as the US and China begin their first high-level trade talks in Switzerland on Saturday.
US Treasury Secretary Scott Bessent and Chief Trade Negotiator Jamieson Greer will meet with China’s Vice Premier, He Lifeng, over the weekend.The revival of the King Dollar has exerted downward pressure on the Gold price, but it remains to be seen if sellers can retain control in the day ahead. Markets may likely take profits off the table on their USD and Gold positions as the looming US-China trade risks approach.
Investors could also see bargain hunting in the bright metal as geopolitical risks globally remain elevated. Analyst said, “Russia and Ukraine both reported attacks on their forces on the first day of a three-day unilateral ceasefire called by Russian President Vladimir Putin,”
“Furthermore, Israel’s escalation with Iran-backed Houthis in Yemen and fears of a broader military conflict along the India-Pakistan border keep geopolitical risks in play,” Haresh added.
Adding to this, a hit to the Chinese trade balance in April due to the probable impact of US tariffs could also bode well for the traditional safe haven. Meanwhile, China’s expansion to its Gold reserves for the sixth straight month also serves in the interest of Gold buyers.
Daily technical analysis
Gold price fell sharply after facing rejection once again above the $3,400 barrier. In doing so, Gold price has breached the critical 21-day Simple Moving Average (SMA) at $3,306.However, the 14-day Relative Strength Index (RSI) has stalled its descent while defending the midline, suggesting that a rebound could be in the offing.
Gold price needs to recapture the $3,400 mark, above which buyers must establish a firm foothold above the two-week high of $3,440. The next topside target is at the record high of $3,500.
On the downside, Gold sellers yearn for a daily closing below the 21-day SMA at $3,306, which could negate any bullish potential in the near term, opening up a fresh downtrend toward the 50-day SMA at $3,129.Ahead of that, the static support at $3,260 and the May 2 low of $3,223 will be challenged.
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