- summary:
- The price of gold extended its standard criticism series amid the weakening of the dollar, but the position of the Federal Reserve Chairman, Jerome Powell, the Falcons brings the opposite wind.
The price of gold rose to new standard levels on Thursday in feeding the investor’s concerns, while the commercial tariffs remain in focusing before the great weekend on the Great Friday. The commodity rose to $ 3,357 an ounce in the immediate market in the European session, where it got weekly gains to 4.6 % in addition, the gold price increased by 26.7 % on an annual basis.
The commodity gains were tamed by Federal Reserve Chairman Jerome Powell “waiting and the President” on Wednesday. Analysts earlier seemed confident that the central bank was likely to announce a reduction in the interest rate in May, but Powell was honest with caution, saying that the mass tariff war could negatively affect the American economy, but emphasizing the need to keep inflation rates low.
A return on US Treasury bonds has been placed less than 4.35 % for the best part of last week, which reduces pressure on inappropriate gold. Also, the US dollar lost its luster on fears that the American economy could soon enter into a recession if the war of commercial tariffs continues. The DXY index is still less than 100 marks, the fifth consecutive day that was in that region. The continuation of this trend will keep the price of gold on the rising track in the short term.
However, on the negative side, US President Donald Trump met with representatives of Japanese trade on Wednesday, describing the discussions as a big step. More conversations can be in the pipeline in the new week, and this may lead to a decrease in demand for safe haven for gold.
Gold price expectations
The momentum on the price of gold is invited for more negative side without the axis mark at $ 3330. The yellow metal is likely to possibly stop at the downtown direction at $ 3,300 at first support. The ongoing control of the sellers will lead to the collapse of this level and will likely open the way to test 3,281 dollars.
On the contrary, a fracture above $ 3330 will turn the momentum into the upper direction. Xauusd is likely to face initial resistance at $ 3,348. Fracture above this barrier will nullify the narration of the downside. Moreover, this momentum can lead to stronger gains for a $ 3,370 test.
