Gold slides with Trump’s stopping on the duties of the European Union amid a high trading volume
- The price of gold decreases more than 0.50 %, as the improved feelings of the haven flows flow after an increase of 4.86 % last week.
- Trump postpones the European Union tariff by 50 % until July 9, which reduces the fears of the short -term trade war.
- Strong Chinese gold tensions and Ukraine Russia tensions maintain sound expectations.
Gold price More than 0.50 % decrease on Monday, amid the absence of a request on the assets of the resort after the US President Donald Trump was delayed by the Customs tariff for the European Union (the European Union). Meanwhile, trading remains thin due to the closure of financial markets (UK) and US financial markets. At the time of writing this report, Xau/USD is traded at $ 3336.
The market mood improved in Trump’s statement on Sunday, which prompted the age of duties on the products of the European Union until July 9. Therefore, the alloys are pressed after last week’s gains by more than 4.86 %, which is the most important increase since the week starts on April 7.
On Friday, Xau/USD extended its upward movement as Trump continued to pressure Apple (AAPL) to make iPhone devices in the United States. If not, 25 % of the duties will be imposed. At the same time, the speech escalated against the European Union, threatening to impose a 50 % tariff on its commodity. This golden metal led from $ 3,287 to the highest level last week, which is $ 3,365.
Despite the decline, the gold prices are scheduled to continue in the gathering, as Reuters revealed that “the net gold imports in China through Hong Kong more than twice in April of March, and it was the highest since March 2024, as the data showed.”
In addition, the geopolitical risks are still high after Russia attacked Ukraine on the third night in a row, causing an angry reaction to Trump.
This week, and American economic list It will contain permanent goods orders in April, the preparations of the Federal Open Market Committee meetings (FOMC), the second estimate of the total Q1 2025 for the local product (GDP) and the issuance of Personal Consumption Expenditure Expenses Index (PCE), the preferred inflation scale of the Federal Reserve.
Gold Daily Market Movers: Improves an improvement in risk appetite for gold prices
- US Treasury bonds are still fixed. Treasury bonds returned for 10 years, two basic points (BPS) on Friday to 4.509 %. Meanwhile, the real revenues in the United States also decreased, with 4 bits per second to 2.179 %.
- Gold price expectations are optimistic, given the mood of the fragile market towards the assets raised by the increasing financial deficit in the United States, which ignited the reducing Moody debts of US debt from AAA to AA1.
- The financial package approved by the US House of Representatives is expected to raise the debt roof by $ 4 trillion.
- The US dollar index (DXY), which tracks the value of Pak compared to a basket of six currencies, decreased by 0.10 % at 99.00, which is the back wind of precious metals provided by the dollar.
- Money markets indicate that traders are happy at 47.5 basis points for mitigation at the end of the year, according to the data of the main market station.
source: The main market station
Technical expectations xau/USD: Gold order to extend to $ 3400
Gold prices have declined slightly, and traders seem to book profits amid delicate liquidity and decreased fluctuations in the United States in observance of the holiday. Trump’s inconsistency with regard to commercial policies can keep prices swing violently once trading resumes on Tuesday.
From a technical perspective, the direction of golden bulls is still intact. If buyers make a daily closure over $ 3300, they can test the highest level last week of $ 3365. If it is exceeded, the next station is the number of $ 3400, followed by the highest level on May 7 at 3,438 dollars and the rise (ATH) at $ 3500.
On the downward side, then gold Less than $ 3,300 decreases, expecting a daily level on May 20 at a value of $ 3.204, before the simple moving average for 50 days (SMA) at $ 3,199.
Fed questions and answers
The monetary policy in the United States is formed by the Federal Reserve (Fed). The Federal Reserve has two states: to achieve price stability and enhance full employment. Its primary performance to achieve these goals is to adjust interest rates. When prices rise very quickly and inflation is 2 % higher than the Federal Reserve goal, it raises interest rates, which increases borrowing costs throughout the economy. This leads to the most powerful USD (USD) because it makes the United States a more attractive place for international investors to stop their money. When inflation decreases to less than 2 % or the unemployment rate is very high, the Federal Reserve may reduce interest rates to encourage borrowing, which weighs on the green back.
The Federal Reserve (Fed) holds eight political meetings annually, as the FOOC Open Market Committee (FOMC) evaluates economic conditions and takes monetary policy decisions. FOMC attends twelve officials of the Federal Reserve-the seven members of the Governor, the President of the Federal Reserve in New York, and four regional regional presidents, the remaining regional regional, who serve for one year on a roundabout.
In extreme situations, the Federal Reserve may resort to a policy called quantitative mitigation (QE). QE is the process that the Federal Reserve increases significantly from the flow of credit in a suspended financial system. It is a non -standard policy scale used during crises or when inflation is very low. The Federal Reserve’s favorite federal weapon was during the great financial crisis in 2008. It includes the printing of the Federal Reserve more than dollars and their use to buy high -quality bonds from financial institutions. QE usually weakens the US dollar.
The quantitative tightening (QT) is the reverse process of QE, as the Federal Reserve stops buying bonds from financial institutions and the manager does not re -invest from mature bonds, to buy new bonds. It is usually positive for the value of the US dollar.
