GOLD looks to $3,400 and beyond on renewed trade jitters
Gold price stages an impressive rebound from the weekly low of $3,260 early Thursday
The US Dollar fades recovery as trade concerns re-emerge while US business growth slumps
Gold price sees dip-buying as the daily RSI points higher in the bullish territory
Gold price rebounds from a weekly low of $3,260 early Thursday as buyers are back with vigour, although replicating the moves seen in Wednesday’s Asian session.
Markets appear cautiously optimistic this Thursday as they take account of the trade talks by the US President Donald Trump’s administration, concerning China and Japan. The recent relief rally on global stocks, triggered by Trump’s backpedalling on attacks on Federal Reserve (Fed) Chair Jerome Powell and his softer stance on the US-China trade deal, seems to have stalled.
The US Dollar (USD) also fades the recovery from over three-year lows against its major currency rivals, as sentiment stutters, allowing the Gold price to resume its uptrend toward a record high of $3,500 set on Tuesday.
On Wednesday, a Wall Street Journal (WSJ) report said that the White House is considering lowering Chinese import tariffs. Following the report, a source told Reuters that the Trump administration would look at reducing tariffs on imported Chinese goods.
However, the reviving trade optimism quickly evaporated after US Treasury Secretary Scott Bessent denied the WSJ report, noting that there’s ‘no unilateral offer’ to slash tariffs on China. Meanwhile, the US headline S&P Global US PMI Composite Output Index fell from 53.5 in March to 51.2 in April, hitting the lowest level in 16 months. The slump in US business growth raises concerns over an economic slowdown while keeping the door open for aggressive easing by the Fed in the coming months.
As investors digest the latest US-Japan trade talks, this narrative fuels a fresh leg down in the Greenback. Citing multiple government sources, the NHK broadcaster reported late Wednesday that the US told Japan that it cannot give Japan special treatment regarding tariffs during talks held earlier this month.Another roadblock on the trade front is the US threatening Canada with tariffs higher than 25% on Canadian cars.
In the day ahead, a bigger-than-expected dip in the German business sentiment data could threaten the latest EUR/USD uptick, reviving the demand for the US Dollar at the expense of Gold price. However, trade headlines will continue to remain the leading market force as US President Trump continues to backflip on his earlier tariff announcements.
Daily technical analysis
The short-term outlook for Gold price seems to have turned in favor of buyers as the 14-day Relative Strength Index (RSI) looks north while within the positive territory.
If the uptrend gathers traction, the Gold price could retake the $3,400 threshold en route to the record highs of $3,500.
In case Gold sellers return with conviction, a test of the 21-day Simple Moving Average (SMA) at $3,175 will be inevitable on a sustained move below the previous day’s low of $3,260, followed by the $3,200 barrier.
GOLD looks to $3,400 and beyond on renewed trade jitters
Gold price rebounds from a weekly low of $3,260 early Thursday as buyers are back with vigour, although replicating the moves seen in Wednesday’s Asian session.
Markets appear cautiously optimistic this Thursday as they take account of the trade talks by the US President Donald Trump’s administration, concerning China and Japan. The recent relief rally on global stocks, triggered by Trump’s backpedalling on attacks on Federal Reserve (Fed) Chair Jerome Powell and his softer stance on the US-China trade deal, seems to have stalled.
The US Dollar (USD) also fades the recovery from over three-year lows against its major currency rivals, as sentiment stutters, allowing the Gold price to resume its uptrend toward a record high of $3,500 set on Tuesday.
On Wednesday, a Wall Street Journal (WSJ) report said that the White House is considering lowering Chinese import tariffs. Following the report, a source told Reuters that the Trump administration would look at reducing tariffs on imported Chinese goods.
However, the reviving trade optimism quickly evaporated after US Treasury Secretary Scott Bessent denied the WSJ report, noting that there’s ‘no unilateral offer’ to slash tariffs on China. Meanwhile, the US headline S&P Global US PMI Composite Output Index fell from 53.5 in March to 51.2 in April, hitting the lowest level in 16 months. The slump in US business growth raises concerns over an economic slowdown while keeping the door open for aggressive easing by the Fed in the coming months.
As investors digest the latest US-Japan trade talks, this narrative fuels a fresh leg down in the Greenback. Citing multiple government sources, the NHK broadcaster reported late Wednesday that the US told Japan that it cannot give Japan special treatment regarding tariffs during talks held earlier this month.Another roadblock on the trade front is the US threatening Canada with tariffs higher than 25% on Canadian cars.
In the day ahead, a bigger-than-expected dip in the German business sentiment data could threaten the latest EUR/USD uptick, reviving the demand for the US Dollar at the expense of Gold price. However, trade headlines will continue to remain the leading market force as US President Trump continues to backflip on his earlier tariff announcements.
Daily technical analysis
The short-term outlook for Gold price seems to have turned in favor of buyers as the 14-day Relative Strength Index (RSI) looks north while within the positive territory.
If the uptrend gathers traction, the Gold price could retake the $3,400 threshold en route to the record highs of $3,500.
In case Gold sellers return with conviction, a test of the 21-day Simple Moving Average (SMA) at $3,175 will be inevitable on a sustained move below the previous day’s low of $3,260, followed by the $3,200 barrier.
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