- Golden gatherings $ 90 this week, as the US dollar weakens amid growing trade tensions and geopolitical risks.
- Dali says in a bank that a policy is still restricted; It may be a neutral rate rising, echoing the increasing Powell tone.
- Traders focus on the main US data next week: Plash PMIS, durable goods, and final consumer morale.
The gold prices of the week are scheduled to end a positive note, an increase of more than 2.79 %, as the precious metal enjoyed $ 90 US dollar (USD) gathered due to the recent weakness under the uncertainty about world trade. At the time of writing this report, Xau/USD is traded at $ 3,326.
Xau/USD keeps $ 3,326 after ATH reached $ 3,358; The real returns are rising, but a long weekend rally rally
European and American markets have been closed due to the long Easter holiday, so news flows are light. Marie Dali, head of the Federal Reserve at San Francisco, has crossed the wires and said the economy is in a good place, although some sectors slow down. She added that the policy remains restricted in a good place, which exerts the low pressure on inflation, and added that neutral rates “may rise.”
The prices of alloys decreased after the highest level (ATH) of $ 3358, as traders booked profits due to the long weekend. A letter on Wednesday, honesty by the President of the Federal Reserve Jerome Powell The precious metal progress was crowned, although uncertainty about American trade policies and geopolitical risks may support gold Prices.
The returns have increased, as the return in the United States increased for 10 years by five basis points to 4.333 %. The real returns of the United States, which are calculated by the nominal observation return minus inflation, climbing five monuments protocol to 2.163 %, which is a reflective wind of gold prices.
next week , American economic list It will be filled with a wave of loudspeakers in the Federal Reserve, the American International Director, the orders of the durable goods, and the consumer morale reading at the University of Michigan.
Xau/USD price expectations: Technical expectations
The bullish trend of gold is still intact despite the decline on Thursday without a brand of $ 3330. With prices recovered some previous losses, the negative side does not indicate limited acceptance of low levels, making the door open for more gains.
Wise momentum, the RSI is still at the height of purchase but not yet at the level of 80 maximum. However, the medium recovery step on the horizon can be with the transformation of the relative strength index to a decrease.
In this case, the initial support lies in $ 3,300, followed by the lowest level on April 16 at $ 3229. In the upward direction, a break above $ 3,350 can prepare a test for a general rise to the date (YTD), with the next goal at $ 3400.
Common Gold questions
Gold played a major role in human history, as it was widely used as a store for value and exchange. Currently, regardless of its brilliance and use of jewelry, the precious metal is widely seen as a safe asset, which means it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against currency decline because it does not depend on any specific source or government.
Central banks are the largest gold holders. In their goal to support their currencies at troubled times, central banks tend to diversify their reserves and buy gold to improve the powerful power and currency. High gold reserves can be a source of confidence to the dissolved country. Central banks added 1136 tons of gold worth $ 70 billion to their reserves in 2022, according to the data of the Golden Golden Council. This is the highest annual purchase since the start of the records. Central banks of emerging economies such as China, India and Turkey increase their gold reserves.
Gold has a counter -relationship with the US dollar and the United States Treasury, which is one of the main reserves and safe assets. When the dollar decreases, gold tends to rise, allowing investors and central banks to diversify their assets at turbulent times. Gold is inversely associated with the origins of the risk. The assembly in the stock market weakens the price of gold, while sales in the most dangerous markets tend to prefer precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of deep stagnation can escalate the price of gold due to its safe situation. As a lower asset than the return, gold tends to rise with low interest rates, while the high cost of money usually reaches the yellow metal. However, most moves depend on how the US dollar (USD) is behaved as the original is priced in dollars (Xau/USD). The strong dollar tends to maintain the price of gold -controlled gold, while the weakest dollar is likely to increase the price of gold.
