- The gold falls $ 100 from the historical maximum after signs of de -escalation of the US Treasury Secretary, Besent, with China.
- Despite a setback, gold continues to rise 29% so far this year due to the uncertainty of Fed, commercial risks and geopolitical tensions.
- The World Gold Council informs tickets of 21,000 million dollars in ETFs in the first quarter, the second highest quarterly figure in history, pointing out a robust demand.
The price of gold goes back after reaching a historical maximum of $ 3,500, but the traders that ensure profits and appetite for the risk in improvement make the ingot move down, although the yields of the US Treasury fall. At the time of writing, the Xau/USD remains about $ 3,400, with a fall of more than 0.63%.
The last -hour news of the US Treasury Secretary, Scott Besent, who said he sees a broken down with China, improved the mood on the market, which represents an obstacle to the prices of the ingot. From the headlines, the yellow metal has moved down $ 50 from around $ 3,420 to $ 3.370.
Despite this, uncertainty about US commercial policies and the attacks of President Donald Trump to the Federal Reserve (Fed) can boost the demand for gold and raise prices. So far in the year, gold prices have remained almost 29% up due to Trump’s geopolitics and changing humor.
Last week, President Jerome Powell said the Fed would continue to depend on the data and even mentioned the possibility of a stagning scenario, recognizing: “We could find ourselves on the challenging stage in which our double mandate goals are in tension.”
In the midst of this context and an uncertain economic perspective, investors come to security, since gold Ethfs flows are increasing, according to the World Gold Council (WGC).
“The Golden ETFs physically backed globally reported strong tickets in March, totaling $ 8.6 billion. This helped boost the total flows of the first quarter to 21,000 million dollars (226t), the second highest quarterly level in terms of dollars, only behind the 24,000 million dollars (433t) of the second quarter of 2020,” the WGC revealed.
Daily summary of market movements: The price of gold goes back to $ 3,400 in a risk environment
- The 10 -year American treasure bonus yield falls two basic points to 4,395%.
- The real US yu. They follow the same trend, lowering two basic points to 2,175%, as shown by the yields of the treasure values ​​against inflation to 10 years from the US.
- In the rates markets, the monetary market traders have incorporated 91 basic points of Fed fees cuts by the end of 2025, with the first expected cut in July.
- As for data, the US economic agenda of this week will be full of speakers of the FED, PMIS flash of Global S&P, orders of lasting goods and the final reading of the feeling of the consumer of the University of Michigan.
Xau/USD technical perspective: The price of gold goes back after reaching $ 3,500
The alcista gold trend remains intact, however, the fall below $ 3,400 was ephemeral, since the precious metal recovers some land. If buyers want to test the $ 3,500 again, they must overcome the $ 3,450 again before trying the historical maximum. However, the relative force index (RSI) has become overcompatted, and not reaching 80 could pave the way for a decline in the ingot.
At the bottom, the Xau/USD daily closure below $ 3,400 could push the price of gold to $ 3,350, followed by $ 3,300.
FAQS GOLD
Gold has played a fundamental role in the history of mankind, since it has been widely used as a deposit of value and a half of exchange. At present, apart from its brightness and use for jewelry, precious metal is considered an active refuge, which means that it is considered a good investment in turbulent times. Gold is also considered a coverage against inflation and depreciation of currencies, since it does not depend on any specific issuer or government.
Central banks are the greatest gold holders. In their objective of supporting their currencies in turbulent times, central banks tend to diversify their reserves and buy gold to improve the perception of strength of the economy and currency. High gold reserves can be a source of trust for the solvency of a country. Central banks added 1,136 tons of gold worth 70,000 million to their reservations in 2022, according to data from the World Gold Council. It is the largest annual purchase since there are records. The central banks of emerging economies such as China, India and Türkiye are rapidly increasing their gold reserves.
Gold has a reverse correlation with the US dollar and US Treasury bonds, which are the main reserve and shelter assets. When the dollar depreciates, the price of gold tends to rise, which allows investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rebound in the stock market tends to weaken the price of gold, while mass sales in higher risk markets tend to favor precious metal.
The price of gold can move due to a wide range of factors. Geopolitical instability or fear of a deep recession can cause the price of gold to rise rapidly due to its condition of active refuge. As an asset without yield, the price of gold tends to rise when interest rates lower, while the money increases to the yellow metal. Even so, most movements depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (Xau/USD). A strong dollar tends to keep the price of gold controlled, while a weakest dollar probably thrusts gold prices.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
