- The price of gold drops on Friday and seems to be ready to close this week with losses.
- China says there are no business conversations ongoing with the US, refuting Trump’s claims about ongoing negotiations.
- Operators seem to be buying rumors of an agreement, pushing up rise and reducing their exposure to gold.
The price of gold (Xau/USD) is on the defensive on Friday, almost erasing all the profits on Thursday, and seems to be ready to close this week in red. The fall occurs in the midst of a growing confusion about the state of the commercial conflict between the United States (USA) and China, with US President Donald Trump giving the impression that conversations and China are being carried out by refusals.
In Friday’s first operations, Bloomberg published a headline that China is considering exempting some American tariff products as costs shoot, shaking the markets from one side to another. At the same time, Bloomberg also reported that the country is preparing emergency plans to deal with external clashes with new financial and political tools.
What moves the market today: SNB records profits for gold fever
- After the Swiss National Bank (SNB) registered a benefit of 6,700 million Swiss francs (CHF) thanks to its gold holdings in the first quarter of 2025, the Central Bank of Kenya says that it is considering adding gold to its reserves to diversify their currency holdings beyond the dollar and other currencies, Bloomberg reports.
- Record recovery in gold and its great intradÃa movements have caused a stir in China by stimulating retail demand, fanning unprecedented negotiation volumes in the Shanghai bag and generating warnings of the authorities, reports Reuters.
- The US Treasury Secretary, Scott Besent, said the US and South Korea could reach an “agreement of understanding” on trade as soon as next week, says Bloomberg. More and more holders on possible trade agreements should exert the downward pressure on gold.
Technical analysis of the price of gold: problems related to semantics
Gold recovery, overheated, seems to need additional cooling. The operators seem to be buying rumors that a commercial agreement between the US and China could arrive very soon, although China contradicts those rumors. The risk here could be that the markets are misunderstanding the US semantics about whether they are “speaking” or “negotiating”, and that no agreement is achieved in the short term, with a possible revision at 3,500
Looking at the technical levels, the daily pivot point at $ 3,335 is the first level and intradic that needs to be recovered. IntradÃa resistance R1 saw a small attempt at testing very early in the opening of this Friday, around $ 3,381. Above, the price of gold could extend the recovery towards R2 resistance at $ 3,414, exceeding the $ 3,400 zone.
At the bottom, the S1 support this morning broke briefly, although now the price action is reversing again above it, at $ 3.302. Below, the S2 support at $ 3,256 precedes the key technical soil about $ 3,245 (maximum of April 11).
Xau/USD: Daily graphic
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.
