Golden bulls turn into caution amid the tone of positive risks; Negative potentials seem limited
- The price of gold reaches a new high record, with a group of factors continuing to increase demand for safe term.
- Expectations that you nourish DOVISH are expected additional Xau/USD and support additional gains.
- Conditions that extinguish it, positive risk tone, and a modest USD cover for precious metals.
The price of gold (Xau/USD) decreases slightly after touching one of the fresh highlands at all on Thursday and remains in its defense during the early European session, although the negative side appears to be a flirt. It seems that the bulls are now reluctant to put new bets in the conditions in which intelligence overlooks the daily chart and a positive risk tone, which tends to undermine safe alloys. Regardless of this, the power of the modest US dollar (USD) contributes to determining the upward trend of precious minerals.
However, the downside of the gold price is still linked in the wake of uncertainty about US President Donald Trump’s aggressive policies and its impact on the global economy. Moreover, the ongoing geopolitical risks arising from the ongoing conflicts in the Middle East should continue to work as a delicious country the price of gold. The increasing bets that the Federal Reserve (Fed) will resume the price cutting course sooner than expected in favor of Xau/USD.
Daily Digest Market Movers: The bulls stop gold prices for breathing in the mood of the optimistic market
- Asian stock markets follow the gains that are overnight in Wall Street, supported by the Federal Reserve decision to maintain interest rates unchanged and maintain the price reduction expectations for this year. As it was widely expected, the US Central Bank maintains fixed interest rates for the second meeting in a row and indicated that it would provide discounts in price rates of 25 points by the end of this year.
- In addition, US President Donald Trump and Russian President Vladimir Putin on Tuesday agreed to immediately stop the strikes against energy infrastructure in the Ukraine war. Moreover, Ukrainian President Folodimir Zelinski and Trump also agreed to work together to end Russia’s lengthy war, which strengthened investor confidence.
- Meanwhile, federal reserve officials have reduced their growth expectations for this year amid the increasing uncertainty about the impact of the Trump administration’s aggressive policies on economic activity. Trump has imposed a 25 % flat duty on steel and aluminum since February and threatened to impose a mutual tariff and a sector, raising fears of a global trade war.
- Traders now see more than 65 % chance that the Federal Reserve Reserves will resume the price cutting course at the June Policy meeting. This, in turn, fails to help the US dollar in registering any meaningful recovery from its lowest levels earlier this week, and some support must be provided to the price of unrestricted gold amid the risk of increasing the escalation of tensions in the Middle East.
- The Israeli army said that it fired a limited penetration in Gaza, a day after the aerial bombardment of the tape that broke the two -month -old ceasefire with Hamas. Moreover, Israeli Prime Minister Benjamin Netanyahu warned against the expansion of the violent war, which should continue to support the valuable and safe metal and reduce any corrective segment.
- Traders are now looking for the latest monetary policy updates from the Bank of England and the Swiss National Bank. Later during the North American session, the US economic list-which includes the usual weekend demands, the Philly Fed manufacturing index, and current home sales data-can produce short-term opportunity around Xau/USD.
It seems that the price of gold is prepared to prolong multiple rising periods for months, while more than $ 3000
The daily relative strength index (RSI) remains higher than 70 marks, and the excessive conditions in the peak area and stop the bulls from putting fresh bets. Consequently, it would be wise to wait for some monotheism in the short term or a modest decline before traders began locating to extend the firm upward trend that he witnessed during the past three months or so. However, the last penetration through the $ 3,000 psychological mark and the subsequent movement indicates that the course of less resistant to the price of gold remains to the upward trend.
Meanwhile, any corrective segment of some purchases is likely to attract an area of 3,023-3,022 dollars. This should help reduce the downside near the $ 3,000 sign, which must now work as a major pivotal point for short -term traders. A convincing break below the latter may lead to some technical sale and withdraw the price of gold to 2,980-2,978 dollars on the road to the $ 2956 area. The declining track can extend towards 2930 dollars support before Xau/USD drop to the brand of $ 2900 and a swing last week, about $ 2.880.
The risks of feelings common questions
In the world of financial terminology, the two terms are widely indicated by “risk” and “risk” to the level of risks that investors in the stomach want during the aforementioned period. In the “risk” market, investors are optimistic about the future, and therefore they are more willing to buy risky assets. Relatively modest.
Usually, during periods of “risks”, stock markets will rise, most goods-with the exception of gold-value, will benefit from positive growth expectations. The currencies of countries that are a source of heavy goods are enhanced due to increased demand and the height of encrypted currencies. In the “risk” market, the bonds-especially the major government-golden barking bonds, and safe clips such as the Japanese yen, the Swiss franc and the US dollar.
The Australian dollar (AUD), the Canadian dollar (CAD), the New Zealand dollar (NZD) and the small FX such as RUBLE (RUB) and Rand South African (Zar), tend to rise in the “risk” markets. This is because the economies of these currencies are largely dependent on the exports of the basic commodity for growth, and the goods tend to rise in prices during the risk periods. This is because investors expect more demand for raw materials in the future due to an increase in economic activity.
The main currencies that tend to rise during “risk” periods are the US dollar (US dollar), Japanese yen (JPY) and Swiss franc (CHF). The US dollar, because it is the world’s reserve currency, and because investors in times of crisis buy the debts of the US government, which are safe because the largest economy in the world is unlikely to fail to pay. Elaine, from increasing demand for Japanese government bonds, because a high percentage is kept by local investors who are unlikely to get rid of them – even in a crisis. The Swiss franc, because strict Swiss banking laws provide investors to protect capital.
