- XAU / USD rallies while Trump warns of 50% prices on EU imports, climbing trade war and demand for the demand for stay.
- The American chamber is due to a budget of $ 4,000 billion, with the Senate vote and inflation data.
- Discussions on Ukraine and Iran facilitate geopolitical stress, but the markets remain at risk.
The upward trend in Gold prices resumed on Friday, the yellow metal increasing almost 2% per day and 5% during the week, while the US dollar (USD) was weakened more after US President Donald Trump degenerated the “ Trade war '' with the European Union (EU). This and investor misfortunes concerning the American budgetary position propel the prices of ingots, with XAU / USD merchant at $ 3,359 after having rebounded a daily hollow of $ 3,287.
Before the opening of Wall Street, Trump said that discussions with the EU “are going nowhere” while threatening to impose prices at 50% on EU imports on June 1. The American Treasury Secretary Scott Bessent also commented: “The president thinks that the EU proposals were not of the same quality as we have seen from our other important negotiation partners.”
Meanwhile, ingots were stimulated by the adoption of `One Big Beautiful Bill '' of Trump to the House of Representatives of the United States, which would add nearly 4 dollars to the ceiling of American debt. The bill will then be adopted in the Senate for its approval.
In the geopolitical front, the Russian Minister of Foreign Affairs said that work on the memorandum leading to a ceasefire in Ukraine was advanced. Meanwhile, the United States and Iran concluded a fifth cycle of negotiations in Rome on the advanced nuclear program in Tehran on Friday.
Regarding data, data on American housing in May have been mixed as the construction permits collapsed, but sales of new houses improved in April. Meanwhile, a wave of fed speakers, led by Saint-Louis Fed Alberto Musalem and Chicago Nourished Austan Goolsbee, crossed the news son.
Next week, the American economic file will include sustainable goods orders, the publication of the last minutes of the Fed meeting, the second estimate of GDPAnd the FED favorite inflation gauge, the basic personal consumer expenses (PCE) price index.
Daily gold market memators: Skyrocket in the middle of aversion to risk stimulated by Trump's comments
- The bond yields of the US Treasury have interrupted their advance, the yield of the Note of the Treasury at 10 years decreasing by almost three basic points (BPS) to 4.505%. Meanwhile, American real yields are also down 2.4 bps to 2.165%.
- The prices of gold prices are optimistic, given the fragile mood of the market towards the American assets triggered by the increasing budgetary deficit in the United States, which triggered the demotion of Moody of the American government debt from AAA to AA1.
- The tax package approved by the American lower room is expected to increase the debt ceiling by 4 billions of dollars.
- The US dollar index (DXY), which follows the value of Buck against a basket of six currencies, flows more than 0.66%, down to 99.24, a rear wind for the precious metal labeled in dollars.
- American construction permits in April increased from 1.481 million to 1.422 million for a loss of 4% MOM. On the contrary, sales of new houses for the same period increased by 10.9% MOM, from 0.67 million to 0.743 million, revealed the US Census Bureau.
- Saint-Louis Fed Musalem said that companies find it difficult to understand how to manage uncertainty about supply chains, stocks and inflation. In the meantime, Chicago Fed Goolsbee said the Fed must wait until the dust emerges, the action bar is higher until it occurs.
- Monetary markets suggest that traders tariffed in 49.5 base points of relaxation towards the end of the year, according to Main market terminal data.
XAU / USD technical perspectives: jumps above $ 3,350 while the trend increases
Gold price extended his earnings, about to test the figure of $ 3,400 in the short term. The bullish momentum remains solid, as shown in the relative force index (RSI), which aims up with enough space before going to the purchase.
That said, the first resistance of XAU / USD is $ 3,400, the swing from May 7 to $ 3,438, followed from $ 3,450 and the top of all time (ATH) at $ 3,500.
On the lower side, if Gold Lower drops less than $ 3,300, expect a low-daily move on May 20 of $ 3,204, before the simple 50-day mobile average (SMA) at $ 3,199.
American-Chinese trade faq
In general, a trade war is an economic conflict between two or more countries due to extreme protectionism at one end. This implies the creation of commercial barriers, such as prices, which cause counter-barriers, an increase in import costs, and therefore the cost of living.
An economic conflict between the United States (United States) and China began in early 2018 when President Donald Trump set trade obstacles on China, claiming unfair commercial practices and an intellectual property flight from the Asian giant. China has taken reprisal measures, imposing prices on several American products, such as cars and soybeans. Tensions intensified until the two countries signed the US-China phase trade agreement in January 2020. The agreement required structural reforms and other changes to the economic and commercial regime of China and pretended to restore stability and confidence between the two nations. However, the coronavirus pandemic has focused on the conflict. However, it should be mentioned that President Joe Biden, who took office after Trump, maintained prices in place and even added additional samples.
Donald Trump's return to the White House as 47th American president sparked a new wave of tensions between the two countries. During the 2024 electoral campaign, Trump has committed to imposing prices of 60% on China once he became his functions, which he did on January 20, 2025. With Trump back, the American-Chinese trade war is supposed to resume the untrings in the global supply chains, resulting in a reduction in investment, in particular investments, and food consumption.
