The price of gold is back after a historical increase exceeding 3000 dollars on Trump’s commercial problems
- Gold briefly reaches an unprecedented rise at $ 3,004 an ounce before settling less at $ 2,982 amid the fluctuation of the US dollar.
- Geopolitical tensions rise with Russia’s stopping of Ukraine. The Chinese Central Bank extends to buy alloys, and boosts gold.
- The recession in the United States is afraid to escalate after the globalized spirits report, raising the stakes that can reduce the federal reserve from politics in 2025.
Gold prices fell after set a record, exceeding $ 3,000, as merchants are still not sure of US President Donald Trump’s policies. This is the weakness of the US dollar, to pay the precious metal to reach the highest level at all times, which amounted to 3,004 dollars an ounce, telling before it fell to 2982 dollars, and lost 0.21 % a day.
Political geography also affects the request of gold. Ukraine-Russia has stopped at a crossroads, and the latter appears to be hesitant to commit to calm for 30 days.
Meanwhile, the Popular Bank of China (PBOC) increased the fourth consecutive alloys reserves in February, according to the World Gold Council (WGC).
The fear of the recession surrounding the USA (United States) Greenback is sent to Spin, which raised the demand for inappropriate metal. This increased the risk that the Federal Reserve (Fed) will reduce policy by 66 basis points (BPS) in 2025, decreasing from 74 basis points a day ago.
Traders focus on the Federal Reserve Policy decision next week. The President of the Federal Reserve, Jerome Powell, pointed out that “market measures for inflation expectations have increased, driven by tariffs,” which indicates that commercial policies can contribute to the renewal of prices.
The wisdom of the data, the Consumer Morals Index at the University of Michigan (UOM) has scored a bleak print, while inflation expectations are aimed at higher due to US President Trump’s tariff.
Next week, the American economic schedule will include retail sales, housing data, monetary policy decisions at the Federal Reserve and Economic Expectations.
Digest Market Mark: The price of gold is dropped in the soft US dollar
- Treasury bonds in the United States for 10 years have regained some land and climbed five basis points by 4.320 %.
- The real returns of the United States, as measured by the 10 -year -old securities (TIPS), which are linked to the opposite connection to gold prices, rises four and a half BPS by 2.013 % via Reuters.
- The US dollar index (DXY), which tracks the value of Greenback compared to six currencies, decreased 0.14 % to 103.71.
- The Consumer Feelings Survey study at the University of Michigan (UOM) in March revealed a sharp decrease in feelings, as it decreased to 57.9 out of 64.7, much less than the expectations of 63.1.
- Inflationes increased, with American inflation increased for 12 months from 4.3 % to 4.9 %. Over a period of five years, consumers expect inflation to 3.9 %, with an increase of the previous 3.5 % estimate.
- Despite the cooler inflation data expected, economists warn that the customs tariff for American imports can lead to an increase in inflation in the coming months.
- On Wednesday, 25 % of the American tariff entered steel and aluminum in the middle of the night, where US President Donald Trump is fighting to reduce the trade deficit by applying imports to imports.
Technical expectations Xau/USD: The price of gold is struggling to bear more than 3000 dollars
The price of gold is finally declined to reach a teacher of $ 3000. The withdrawal is seen as the bulls before launching a second attack to achieve a daily closure above the highest level at $ 3,004. The following main main resistance levels that were seen are $ 3,050 and $ 3100.
On the other hand, the first support is $ 2950, which, if wiped, can pave the way to test 2,900 dollars before 2850 dollars. The next support will be less than February 28 at $ 2,832.
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.
