GOLD hurt by US-China trade deal hopes; buyers still hopeful?
Gold price opens the week on a bearish note amid US-China trade deal optimism.
The US Dollar holds a bullish opening gap amid a generalized risk-on market profile.
Gold price closed Friday above 21-day SMA, then at $3,307, where next?
Gold price is licking its wounds after witnessing a steep sell-off in the opening trades, sending the bright metal to its lowest level in five days near the $3,250 level.
The latest leg down in Gold price is driven by a generalized upbeat mood as investors cheer ‘’substantial progress’ touted by the United States and China following their high-stakes trade talks in Geneva over the weekend.Increased hopes that the world’s two largest economies will finally reach a trade deal after last month’s tit-for-tat tariffs on each other almost put a halt to their foreign trade. This broader market optimism has diminished Gold’s appeal as a traditional safe haven.However, the Gold price downside appears capped, as a US-Sino joint statement on the Geneva trade talks is eagerly anticipated for fresh trading impetus.
Additionally, Gold price continues to receive support from the ongoing geopolitical tensions between India and Pakistan and Russia-Ukraine.Meanwhile, Ukrainian President Volodymyr Zelenskyy stated that he hopes for a full and temporary ceasefire with Russia to begin on Monday, May 12. However, Moscow effectively rejected the proposal and called for direct negotiations instead without preconditions.
Looking ahead, several key factors remain, including trade and geopolitical risks, which could continue to keep Gold sellers in check.Markets also focus on US trade talks with Japan and the European Union (EU), which remain a cause for concern, especially after the European Commission announced last week that it plans to introduce countermeasures on up to EUR95 billion ($107.2 billion) of US imports, if negotiations with Washington were to fail to eliminate tariffs applied by US President Trump.
Daily technical analysis
Gold price closed Friday above the 21-day SMA, then at $3,307, keeping buyers hopeful.However, the 14-day RSI appears to be on the verge of turning bearish as the leading indicator threatens the midline.
If the RSI holds the midline, a rebound toward the 21-day SMA support-turned-resistance at $3,313 will unfold. Acceptance above that level will call for a test of the falling trendline resistance at $3,433, where the intermittent resistance aligns.A sustained move above that level will open the door toward the record high of $3,500.
Conversely, a daily candlestick closing below the 21-day SMA at $3,313 will likely negate any bullish bias in the near term, opening up a fresh downtrend toward the 50-day SMA at $3,138.Ahead of that, the May 1 low of $3,202 will be challenged.
GOLD hurt by US-China trade deal hopes; buyers still hopeful?
Gold price is licking its wounds after witnessing a steep sell-off in the opening trades, sending the bright metal to its lowest level in five days near the $3,250 level.
The latest leg down in Gold price is driven by a generalized upbeat mood as investors cheer ‘’substantial progress’ touted by the United States and China following their high-stakes trade talks in Geneva over the weekend.Increased hopes that the world’s two largest economies will finally reach a trade deal after last month’s tit-for-tat tariffs on each other almost put a halt to their foreign trade. This broader market optimism has diminished Gold’s appeal as a traditional safe haven.However, the Gold price downside appears capped, as a US-Sino joint statement on the Geneva trade talks is eagerly anticipated for fresh trading impetus.
Additionally, Gold price continues to receive support from the ongoing geopolitical tensions between India and Pakistan and Russia-Ukraine.Meanwhile, Ukrainian President Volodymyr Zelenskyy stated that he hopes for a full and temporary ceasefire with Russia to begin on Monday, May 12. However, Moscow effectively rejected the proposal and called for direct negotiations instead without preconditions.
Looking ahead, several key factors remain, including trade and geopolitical risks, which could continue to keep Gold sellers in check.Markets also focus on US trade talks with Japan and the European Union (EU), which remain a cause for concern, especially after the European Commission announced last week that it plans to introduce countermeasures on up to EUR95 billion ($107.2 billion) of US imports, if negotiations with Washington were to fail to eliminate tariffs applied by US President Trump.
Daily technical analysis
Gold price closed Friday above the 21-day SMA, then at $3,307, keeping buyers hopeful.However, the 14-day RSI appears to be on the verge of turning bearish as the leading indicator threatens the midline.
If the RSI holds the midline, a rebound toward the 21-day SMA support-turned-resistance at $3,313 will unfold. Acceptance above that level will call for a test of the falling trendline resistance at $3,433, where the intermittent resistance aligns.A sustained move above that level will open the door toward the record high of $3,500.
Conversely, a daily candlestick closing below the 21-day SMA at $3,313 will likely negate any bullish bias in the near term, opening up a fresh downtrend toward the 50-day SMA at $3,138.Ahead of that, the May 1 low of $3,202 will be challenged.
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