- The price of gold regains positive traction because trade-related uncertainties increase safe-hovel assets.
- The USD struggles to woo buyers despite the Hawkish break of Fed.
- Bulls seem unaffected by a positive risk tone, which goes to weaken the XAU/USD pair.
The Gold Price (XAU/USD) attracts some dip-curtains during the Asian season on Thursday and conducts rallies above the $ 3,400 mark in the last hour, which reverses a major part of the two-week-to-overnight slide. US President Donald Trump expected a quick solution to the US-China trade war that he has no real hurry to sign any deal. This, with geopolitical risks arising from the Russia-Ukraine war, underlines the conflict in the Middle East, and a dangerous military conflict on the India-Pakistan border, safe-hevan bullion.
Meanwhile, the initial market response to the Federal Reserve (Fed) Hawkish stop declined short -term amidst the increased economic uncertainty led by Trump’s rapid shifting trend on Wednesday. This, in turn, fails to assist the US dollar (USD) to capitalize on the minor benefits of the previous day and is seen as another factor reducing the demand for gold price. However, a generally positive tone around the equity markets can hold the XAU/USD bull back and keep the lid on any meaningful benefit.
Daily Digest Market Movers: Gold Price Bulls see to maintain control between constant safe-heven demand
- US President Donald Trump said on Wednesday that he was not open to reduce 145% tariffs imposed on China to encourage trade-war talks. It holds a lid on optimism under the leadership of the announcement of US-China trade talks later this week and gives some support for the price of safe-heaven gold.
- The airports in Moscow were closed in Moscow amidst a large-scale Ukrainian drone attack ahead of the three-day Trus of the Russian President Vladimir Putin. In addition, Ukraine said that Russia launched the directed bomb on this Thursday about three hours after the first ceasefire came into force.
- Meanwhile, the Israeli army stated that it had completely disabled the main airport of Yemen in the capital Sanaa, which is controlled by Hauthis. In response, a member of the top political body of Hauthis said that Israeli attacks were reacting. It holds the geopolitical risk in the game and further reduces the XAU/USD pair.
- The Federal Reserve, as widely expected, unchanged its major interest rate unchanged in a range between 4.25% -4.5% at the end of the two -day monetary policy meeting on Wednesday. In the accompanying statement, the US Central Bank said that uncertainty about the economic approach has increased further.
- At the post -meeting press conference, Fed Chair Jerome Powell also said that there is a great deal of uncertainty about tariffs and said that the right thing is that further clarity is awaited. This suggests that the US Central Bank is never bending to cut rates soon, although it failed to influence a US dollar bull.
- Trump said on the truth social that he would announce a major trade deal with representatives of a large and highly respected country on Thursday, first of many. It usually supports positive risk tone around equity markets and can serve as a headwind for precious metal.
- The market will focus on Trump’s press conference at 14 GMT at the Oval Office. In addition, the US Weekly will affect the dynamics of the USD value on Thursday and will provide a fresh inspiration to the XAU/USD pair later during the North American session.
After cleaning $ 3,434-3,435 immediate hurdle, the price of gold can aim to resume all-time peaks
From a technical point of view, the emergence of fresh purchases near $ 3,260 resistance-support-support and later step is in favor of XAU/USD bull. In addition, osterators on the daily chart are comfortably holding in the positive area, suggests that the least resistance to the price of gold remains upside down. $ 3,434–3,435 area, or beyond the weekly high, buy positive bias, and allow commodity to retract all-time peaks and make a new effort to win a $ 3,500 psychological mark.
On the other hand, $ 3,465–3,460 region may continue to act as immediate strong support of $ 3,328–3,327 area and $ 3,300 round figure. A solid brake under the latter will deny the near-period positive attitude and indicate some technical sales. The bottom trajectory can then pull the price of gold on $ 3,223-3,222 area and the swing of previous week, $ 3,200 around the neighborhood $ 3,265–3,260 intermediate support N route.
US-China Trade War Fasting
Generally, a trade war is an economic conflict between two or more countries due to extreme protectionism at one end. This means the creation of business obstacles, such as tariffs, resulting in counter-career, increase in import costs, and therefore cost life.
An economic conflict between the United States (US) and China began in early 2018, when President Donald Trump determined trade obstacles on China, claiming unfair commercial practices from Asian giants and intellectual property theft. China took ventilative action, applying tariffs on several American goods such as automobiles and soybeans. In January 2020, the two countries increased tension until the US-China stage signed a trade deal. The agreement required structural reforms and other changes in China’s economic and trade rule and pretended to restore stability and confidence between the two countries. However, the Koronwirus epidemic focused on the struggle. Nevertheless, it is worth noting that the President Joe Biden, who took over after Trump, placed the tariff in place and even added some extra levy.
Donald Trump’s return to the White House as the 47th US President has provoked a new wave of tension between the two countries. During the 2024 election campaign, Trump promised to impose a 60% tariff on China, once he returned to the office, which he did on 20 January 2025. With Trump Back, the US-China trade war is to resume, where it was abandoned, to affect the policies of one of the global supplys, especially to affect a type of flaws along with malfunctions, especially in investment malfunctions.
