- Gold price remains stuck less than $ 3340 during the European trading session on Monday.
- Some sigh in Europe after Trump announced the delay in the European Union definitions until July 9.
- American debt fears are in the background, crowned the downside of precious metals.
The price of gold (Xau/USD) slips on Monday about $ 3333 at the time of writing this report, while the American markets are closed due to the holiday of the General anniversary. The small correction comes after the President of the United States (the United States), Donald Trump, issued a statement on the social truth that it will extend to July 9 in the final date of the European Union (EU) to face a 50 % tariff. The decision came after an invitation between Trump and European Commission President Ursula von der Lin on Sunday, and the European Union’s mediator should help a trade agreement with the Trump administration.
Although this euphoria on the risks seems attractive to joining, this does not mean that the height of the precious metal has ended. The most soft position on trade weakens the safe demand for gold, but the gravity of metal safety is still strong amid increasing concerns about the financial situation of the US government. Investors still are concerned that the Trump tax bill, which was approved last week on the House of Representatives and will be discussed in the Senate, will increase the United States and debt deficit.
Daily Digest Market Movers: US CREDIT UNDAGE = Upgrate the price of gold
- Citigroup Inc. Its target price for three months of gold to $ 3500/ounce on tariff concerns, high geopolitical risks and strong economic growth in China and India. “The demand for gold shoots all cylinders,” City analysts said in a note.
- US President Trump announced on Sunday that his plans to strike the European Union with a 50 % tariff will be delayed until July 9 to allow the time of both sides to negotiate a deal. On Friday, the American leader threatened 50 % of the expected mass, with Apple Inc. warning. It will be subject to 25 % definitions if IPHONE devices are not made in the United States.
- Josh Gilbert, a market analyst at Itoro, warned that these delays do not bring any structural changes to the Trump tariff policy. Bloomberg said: “All temporary suspension is good and good at the present time, but during this time we need to see more agreements in force to confirm Trump’s most negotiable approach,” Bloomberg said.
- The Prime Minister in Vietnam Vam Minh Cennah asked the Central Bank of the country, the Ministry of Finance and the relevant agencies to study the establishment of an organized golden exchange to enable transparent public trading and prevent smuggling and manipulation, according to a statement on the government’s website, according to Bloomberg reports.
- The US dollar also falls on Monday, and it extends losses on Friday, as it seems that enthusiasm has faded to the world’s reserve currency this year amid increasing financial concerns in the United States. The speculative traders remained landing on the dollar, but they reduced their status to $ 12.4 billion in the week ending May 20 from $ 16.5 billion in the previous week, according to CFTC DATA reports on Friday, according to Reuters reports.
Technical analysis of gold prices: The demand is still full
Gold returns back as investors escape the assets after the agreement between Trump and the iPhone of Lien to continue negotiating trade. However, the delay is only a secondary, for a period of one month only, and it is almost impossible for a trade agreement between the two blocs gold Due to increased uncertainty.
On the upper side, the R1 resistance at $ 3,386 is the first level that it is looking for as a resistance. Do not follow the R2 resistance at $ 3,415 away, and it can open the door to return to the round level of $ 3440 and possibly more track to the highest level ever at $ 3500.
On the other hand, some thick support appears in a state Gold price to retreat. On the negative side, Daily S1 support comes at $ 3,307, and protect the large number of $ 3300. Some intermediate support can come from S2 support at $ 3,258. Moreover, there is a pivotal technical level at $ 3,245, approximately approximately with the support of the S2 at 3,240 dollars.
Xau/USD: Daily chart
