GOLD eyes US-China trade talks and third straight weekly gain
Gold price defends weekly gains early Friday, finding stiff resistance near $3,370
The US Dollar picks up bids on the US trade deal optimism with its Asian allies
The daily technical setup remains in favor of Gold buyers, with $3,400 a key topside barrier
Gold price holds Thursday’s rebound, defending weekly gains near $3,350 early Friday. Gold buyers catch a breather, taking stock of the trade developments globally after US President Donald Trump’s tariffs whiplash.
This Friday, the US Dollar (USD) sees fresh signs of life as risk sentiment remains upbeat on optimism for trade deals. Reuters reported that the Trump administration seems to be progressing in early trade talks with Asian allies South Korea and Japan.
On Thursday, Seoul’s delegation said that both sides aim to craft a trade package before the pause on reciprocal tariffs is lifted in July. Meanwhile, Japanese Finance Minister Kato Katsunobu held talks with US Treasury Secretary Scott Bessent in Washington on Thursday, noting that Bessent did not raise the Yen’s level in bilateral talks.In evidence of further progress, Japan’s chief negotiator, Economy Minister Ryosei Akazawa, will hold a second round of trade talks with Bessent next week.
Receding recession fears, following encouraging earnings reports from American tech giants, offer some respite to the beleaguered US Dollar.The resurgent US Dollar demand and trade deal hopes heading into the weekend limit the Gold price upswing. The US Federal Reserve (Fed) officials’ cautious stance on revising the policy, as they continue to assess the impact of Trump’s tariffs on the economy and inflation prospects, acts as a headwind for the recent upswing in Gold price.
However, Gold buyers remain hopeful amid a lack of certainty on the US-China trade talks front.
Looking ahead, traders will pay close attention to any trade-related headlines from the White House or US President Trump for fresh cues on the Gold price action. The end-of-the-week flows will also emerge as one of the forces behind the Gold and the US Dollar movement later in the day.
Daily technical analysis
The short-term technical outlook for the Gold price remains constructive as the 14-day Relative Strength Index (RSI) holds firm above the midline, currently near 65.
Gold price must find acceptance above the $3,400 threshold for resuming the uptrend toward the record highs of $3,500. Further up, the rising trendline resistance at $3,583 will come into play.
If the upside loses traction, a 21-day Simple Moving Average (SMA) test at $3,175 will be inevitable on a sustained move below Wednesday’s low of $3,260.The line in the sand for Gold buyers is seen at the $3,200 barrier.
GOLD eyes US-China trade talks and third straight weekly gain
Gold price holds Thursday’s rebound, defending weekly gains near $3,350 early Friday. Gold buyers catch a breather, taking stock of the trade developments globally after US President Donald Trump’s tariffs whiplash.
This Friday, the US Dollar (USD) sees fresh signs of life as risk sentiment remains upbeat on optimism for trade deals. Reuters reported that the Trump administration seems to be progressing in early trade talks with Asian allies South Korea and Japan.
On Thursday, Seoul’s delegation said that both sides aim to craft a trade package before the pause on reciprocal tariffs is lifted in July. Meanwhile, Japanese Finance Minister Kato Katsunobu held talks with US Treasury Secretary Scott Bessent in Washington on Thursday, noting that Bessent did not raise the Yen’s level in bilateral talks.In evidence of further progress, Japan’s chief negotiator, Economy Minister Ryosei Akazawa, will hold a second round of trade talks with Bessent next week.
Receding recession fears, following encouraging earnings reports from American tech giants, offer some respite to the beleaguered US Dollar.The resurgent US Dollar demand and trade deal hopes heading into the weekend limit the Gold price upswing. The US Federal Reserve (Fed) officials’ cautious stance on revising the policy, as they continue to assess the impact of Trump’s tariffs on the economy and inflation prospects, acts as a headwind for the recent upswing in Gold price.
However, Gold buyers remain hopeful amid a lack of certainty on the US-China trade talks front.
Looking ahead, traders will pay close attention to any trade-related headlines from the White House or US President Trump for fresh cues on the Gold price action. The end-of-the-week flows will also emerge as one of the forces behind the Gold and the US Dollar movement later in the day.
Daily technical analysis
The short-term technical outlook for the Gold price remains constructive as the 14-day Relative Strength Index (RSI) holds firm above the midline, currently near 65.
Gold price must find acceptance above the $3,400 threshold for resuming the uptrend toward the record highs of $3,500. Further up, the rising trendline resistance at $3,583 will come into play.
If the upside loses traction, a 21-day Simple Moving Average (SMA) test at $3,175 will be inevitable on a sustained move below Wednesday’s low of $3,260.The line in the sand for Gold buyers is seen at the $3,200 barrier.
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