- The price of gold recovers positive traction on Monday as geopolitical risks revive the demand for safe refuge.
- The USD remains depressed below a maximum of several weeks and further benefits from the precious metal.
- The market approach now moves to the crucial of the FOMC policy of two days that begins on Tuesday.
The price of gold (Xau/USD) remains in its modest intradic advances above the level of $ 3,250 during Monday’s Asian session, although it lacks strong continuation purchases or a bullish conviction. In the context of the prolonged war between Russia and Ukraine, an escalation of the conflict in the Middle East maintains the geopolitical risk at stake. In addition, the uncertainty about the tariff plans of US President Donald Trump weighs on the feeling of investors and benefits the traditional precious metal of safe refuge.
Meanwhile, the growing economic uncertainty due to Trump’s tariffs does not help the US dollar (USD) to capitalize on the rebound inspired by the optimist monthly US employment report. UU. Apart from this, bets for an imminent start of the federal reserve rate cuts cycle (FED) provide additional support at the price of gold without performance. However, operators seem reluctant to carry out aggressive bets and choose to stay out of the day before the two -day FOMC policy meeting that begins on Tuesday.
What moves the market today: the price of gold is supported by the reactivation of the demand for safe refuge and a weaker USD
- In an interview broadcast on Sunday, Russian President Vladimir Putin declared that Russia has the means and strength to bring the conflict in Ukraine to a logical conclusion. This occurs before the high unilateral fire declared by Putin on May 8-10. However, Russia dismissed the proposals of Ukraine and the US for a high unconditional fire of 30 days.
- Israeli Prime Minister Benjamin Netanyahu promised to respond to the ballistic missile attack of the Yemen’s rebels who hit the Ben Gurion International Airport on Sunday and added that Iran would also face consequences for the attack. In response, Iran’s Minister of Defense, Aziz Nasirzadeh, said Tehran would counterattack if the US or Israel attacked.
- US President Donald Trump announced on Sunday a 100% tariff over all films produced in foreign countries. Its unpredictable commercial posture concerns investors, promoting flows to safe shelters that help gold to extend their rebound since the minimum last week near the round figure of $ 3,200.
- The operators reduced the bets that the Federal Reserve will cut rates as soon as in June after the best publication of the expected employment data of the United States. UU. On Friday, which showed that the economy added 177,000 jobs in April compared to the 130,000 expected. Additional details revealed that the unemployment rate remained stable at 4.2%, indicating an still resistant US labor market.
- The US dollar, however, struggles to attract significant buyers and remains depressed below a maximum of several weeks reached last Thursday in increasing economic uncertainty due to Trump’s tariffs. This provides additional support to the XAU/USD couple before the long -awaited two -day FOMC policy meeting that begins on Tuesday.
- In addition, the speeches of influential officials of the FED later will be analyzed in search of information about the future career of monetary policy and to boost USD’s demand. Meanwhile, the ISM services PMI of the USA
Gold price bundles need to wait a movement beyond 3,260-3.265 $ before positioning any additional movement up
From a technical perspective, the precious metal showed some resistance below the Fibonacci recoil level of 50% of the upward movement since the neighborhood of the $ 2,900. The subsequent rebound from the neighborhood of $ 3,200 justifies a certain caution before positioning for an extension of the recent setback from the level of $ 3,500, or the historical maximum reached in April. However, any additional movement is more likely that in front of strong resistance near the horizontal support break of 3,260-3.265 $, which has now become resistance. However, a sustained force beyond the latter could raise the price of gold to the supply zone of 3,348-350 $ en route to the intermediate obstacle of 3,367-3.368 $ and the round figure of $ 3,400.
On the other hand, weakness below the 3,225 $ region (FIBO 50% level) could continue to find some support before the level of $ 3,200. A convincing rupture below that level would cause the price of gold to be vulnerable to accelerate the fall towards the confluence of 3,170-3.165 $, which includes the level of 61.8% of fibo. and the simple mobile average (SMA) of 200 periods in the 4 -hour graph. Some continuation sales will be seen as a new trigger for bassists and pave the way for a new short -term depreciation movement.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. US dollar was the strongest currency against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.07% | -0.31% | -0.43% | -0.06% | -0.47% | -0.71% | -0.28% | |
| EUR | 0.07% | 0.03% | -0.10% | 0.28% | -0.13% | -0.37% | 0.06% | |
| GBP | 0.31% | -0.03% | -0.36% | 0.25% | -0.16% | -0.40% | 0.03% | |
| JPY | 0.43% | 0.10% | 0.36% | 0.39% | -0.03% | -0.18% | 0.27% | |
| CAD | 0.06% | -0.28% | -0.25% | -0.39% | -0.70% | -0.65% | -0.22% | |
| Aud | 0.47% | 0.13% | 0.16% | 0.03% | 0.70% | -0.24% | 0.19% | |
| NZD | 0.71% | 0.37% | 0.40% | 0.18% | 0.65% | 0.24% | 0.42% | |
| CHF | 0.28% | -0.06% | -0.03% | -0.27% | 0.22% | -0.19% | -0.42% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
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.
