Gold is maintained above $ 3,300 as geopolitical risks and US debt problems increase.

• The gold goes up while the operators prepare for the vote on the Trump Debt Fiscal Law Project.
• The moody’s reduction and the fall of the US dollar feed the demand for safe refuge for gold.
• The disturbances in the Middle East compensate for the relaxation of commercial tensions between the US and China, maintaining the appetite for the contained risk.

Gold prices advance more than 0.50% and remain above the 3,300 $ brand while operators are increasingly nervous about the vote of the United States Fiscal Law (USA), together with the growing tensions in the Middle East. The XAU/USD quote $ 3.307 after bouncing from a daily minimum of $ 3,285.

The mood of the market remains pessimistic, since the main rates of US shares record losses while the yield bonds of the US Treasury rise. Market participants are waiting for the approval of President Trump’s tax cuts bill, which, according to the Congress Budget Office (CBO), would add almost 3.8 billion dollars to the US national debt.

The approval could support US actions. However, the dollar reaction is uncertain after the reduction of Moody’s to the US government debt last Friday, which caused a sale of the USD, as indicated by the index of the US dollar (DXY).

The DXY, which tracks the performance of the US currency compared to another six, falls 0.52% to 99.49, which acts as a wind in favor for gold prices.

Increased tensions in the Middle East promoted gold prices, despite the fact that tensions between China and the US were broken down, since Beijing and Washington substantially reduced tariffs for 90 days to initiate negotiations in order to achieve a commercial agreement.

This week, the operators will be attentive to the Fed speeches, the preliminary PMIS, the housing data and the initial unemployment applications.

Daily Gold Market Movements: Gold is recovered amid high yields of US Treasury Bonds and a weak dollar

• The yields of the US Treasury bonds are shooting, since the 10 -year bonus yield of the US rises nine basic points to 4.58%. Meanwhile, US real yields also upload nine basic points to 2,229%.
• Gold prices are rising due to concerns about the increase in US debt last week, Moody’s, the International Qualification Agency, reduced the qualification of the US government of AAA to AA1, which promoted gold prices by getting rid of the US dollar and worsening the fiscal position of the United States.
• On Tuesday, those responsible for the Federal Reserve Policy (FED) commented that monetary policy is appropriate, recognizing that the increase in US import tariffs is prone to inflation and justifies maintaining rates.
• The price of gold could extend its profits, driven by geopolitical news. On Tuesday, CNN, citing multiple sources, revealed that Israel is preparing to attack Iranian nuclear facilities.
• The data of the Chicago Commerce Board (CBOT) suggest that the operators are discounting 48.5 basic points of relaxation towards the end of the year.

Xau/USD technical perspective: Gold ready to test $ 3,350 while the bulls take impulse

The recovery of the price of gold was extended for the third consecutive day, since the price action has registered successive days of higher and higher minimums, with attentive buyers at key levels of resistance. The momentum, as indicated by the relative force index (RSI), suggests that the upward trend will continue before the RSI reaches overcompra territory, which could justify a pause on the road.

Therefore, the first gold resistance would be the psychological level of $ 3,350. Once exceeded, the following objective would be $ 3,400, followed by the maximum daily of May 7, $ 338, before trying the historical maximum (ATH) of $ 3,500.

For a bassist reversal, gold bassists must drag cash prices below $ 3,300. Once surpassed, the immediate support appears in a minimum daily of May 20, $ 3,204, before the simple mobile average (SMA) of 50 days at $ 3,184.