- Gold prices come together more than 2% on Monday with nervousness to the Fed interest rate decision.
- The geopolitical risks from Trump and Israel repel investors in gold.
- The rising risks persist and suppress the sellers in the open of precious metal.
Gold (XAU / USD) increases by more than 2% on Monday to $ 3,310 when writing the editorial's time, traders fleeing safe assets after an eventful weekend on the geopolitical front. The Houthi attack that struck Ben Gurion's airport this weekend and Israel's promise to retaliate while preparing for a large land offensive in Gaza is increasing the risks in the region again. Meanwhile, US President Donald Trump said military action could be an option to consider the United States to take control of Greenland.
Gold call increases as merchants are preparing for the decision of the Federal Reserve prices on May 7. During the weekend, Trump again expressed his aversion to the Fed and its president Jerome Powell. After calling Powell as a “steep”, the American president called on the members of the Federal Open Market (FOMC) committee to put pressure on President Powell to carry out rate cuts.
According to the Fedwatch Tool of Chicago Mercantile Exchange (CME), no drop in rate is planned for this Wednesday. Given the recent Non -agricultural payrolls Printing and the latest series of sectors data such as manufacturing and services, the American economy is starting to relax, but does not crash. This could be ammunition for the president of the Fed, Powell, against political pressure and the channel to the markets that the prices will remain stable longer until the Fed is comfortable enough to lower them.
Daily Digest Market Movers: sector consolidation
- Several Asian markets are closed for a public holiday on Monday. The United Kingdom is also closed.
- In the golden mines sector, some buy-back news with Gold Road Resources agreeing to be bought for $ 3.7 billion after the South African Golden Champs have softened its offer, concluding a public ship between Coentreprise partners, reports Financial Review.
- The CME Fedwatch tool shows the chances of a drop in the interest rate by the federal reserve at the May meeting of 5.2% against a probability of 94.6% without change. The June meeting sees 46.6% of a drop in rates.
Technical analysis of the price of gold: washing
Bullion springs above on Monday, while the greenback dropped lower at the start of the negotiation day. The synergy of communication vessels between the two assets comes a few days before the Fed rate decision. Generally, stable or higher rates are bad for gold because interest yields in bonds are more attractive than gold yield. However, there could be an escape in this story: if the rates remain high at the current levels, the American economy could weaken more, contract and trigger stagflation or recession, and gold is a better positioned coverage to resist this scenario.
Uplining, the R1 resistance at $ 3,265 has already been broken during a test at the top of the negotiation at the start of Monday. If a follow -up has come, the R2 at $ 3,337 could be a little too far away. Rather, look for $ 3,290 (May 1) and $ 3,320 (April 30) as nearby intermediate levels for rising resistance.
Lower, pivot at $ 3,244 with the technical level at $ 3,245 should do the trick and hold. In the event that reductions of ingots more, very close supports are present nearly $ 3,219 of intraday S1 support and $ 3197 S2 Intraday Support for Monday.
XAU / USD: Daily table
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.
