- The XAU/USD quotes above $ 3.120 while the markets are prepared for broad commercial measures of the US; The weakness of the dollar compensates to increase yields.
- Trump will reveal tariff plans; The options include general tariffs of 20% or country tax by country.
- Gold has risen 23% since its minimum after the elections; Operators observe a possible dismantling if tariffs turn out to be less aggressive than feared.
The price of gold extends its profits on Wednesday, staying close to historical maximums while market participants expect the tariff plans of the US president, Donald Trump, around 20:00 GMT. The Xau/USD quotes at $ 3.122, earning 0.28%.
The US release day has finally arrived. Trump is expected to reveal reciprocal tariffs, which are intended to reduce the US trade deficit with their partners. Last week, he announced a 25% tariff on imported cars and the suspension of tariffs on Mexico and Canada is expected to end on April 3.
A day ago, media reports suggested that three options are being discussed: a 20%general tariff, stepped tariffs and specific tariffs applied country by country.
Standard Chartered analyst Suki Cooper, commented: “If the tariffs are not as extensive as it was feared, there could be a dismantling of some gold positions, in which case the apartment of the physical market will be key to establishing the negative side.”
Since US President Donald Trump won the elections, gold prices initially fell before recovering and winning more than 23% since the minimum of November 14, when the Xau/USD reached $ 2,536.
The prices of the ingot have extended their earnings despite the increase in US yields, however, the general weakness of the US dollar (USD) maintained firm gold prices above the $ 3,100 mark.
The US economic data have passed to the background in the middle of the nerves through tariffs. The ADP revealed that private companies hired more people than expected, while factory orders expanded above the estimates, although they showed some signs of deceleration.
This week, the operators focus on the announcement of Trump tariffs, the ISM services PMI for March, the non -agricultural payroll figures and the speech of the president of the Fed, Jerome Powell.
What moves the market today: the price of gold rises in the middle of high yields of the US
- The 10 -year bonus of US bonus rises three basic points to 4.19%. The real US yet yields rise to three PB to 1,862%, according to the yields of the US Treasury values ​​protected against inflation (Tips) at 10 years.
- The National Employment Report for March showed that companies added 155,000 jobs, exceeding expectations of just over 105,000 and significantly more than the increase of 84,000 February, pointing out a continuous strength in the hiring of the private sector.
- Meanwhile, factory orders increased 0.6% monthly in February, slightly above the 0.5% forecast, although slowing down from the 1.8% increase in January.
- Looking ahead, Donald Trump is expected to announce reciprocal tariffs on US commercial partners during a speech in the White House Rosas garden, a movement that will probably stir market volatility and global commercial tensions.
- The last estimate of the GDP Now model of the Atlanta Fed indicates that GDP for the first 2025 quarter is expected to contract 3.7%, below the 2.8% estimate of March 28.
- Futures of the money market discount more than 73 basic points of interest rate cuts by the Federal Reserve (FED).
XAU/USD technical perspective: The price of gold goes from historical maximums about $ 3,150
The upward trend in gold prices remains intact; However, the lack of commitment of buyers to bring prices to historical maximums keeps the yellow metal quoting laterally. The Relative Force Index (RSI) is above level 70, indicating overcompra territory. Operators must take into account that, due to the strength of the trend, the most extreme reading can reach 80. Therefore, a greater increase is anticipated.
If the Xau/USD remains above $ 3,100, buyers maintain control. An extension of the rally would trigger a breakdown of the historical maximum at $ 3,149, followed by the $ 3,200 mark. On the contrary, a fall below $ 3,100 would exhibit the maximum of March 20, which has since supported $ 3,057, followed by the 3,000 $ brand.
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.
