- The price of gold is maintained with a gain of 0.5% on Tuesday while euphoria for the commercial agreement between the US and China fades quickly.
- The operators question recent agreements since details about the content of the current agreements with the United Kingdom and China are not provided.
- Operators are buying some safe refuge protection at current prices discounted around $ 3,250.
The gold (Xau/USD) has a long way to recover up to $ 3,500, currently quoting about $ 3,253 at the time of writing on Tuesday. The precious metal recovers parts of the correction of 2.65% that took place on Monday after the announcement of the commercial agreement between the US and China. The operators are beginning to be cautious due to the lack of details in the announcement, and another outbreak could boost the bilge to the historical maximum established last month. Therefore, the current movement in the price of precious metal could be a good time to buy in the fall.
“The devil is in the details during the negotiations,” said Christopher Wong, an Oversea-Chinese Banking Corp. Meanwhile, the president of the Bank of the Federal Reserve (FED) of Chicago, Austan Goolsbee, warned that even the current levels of tariffs will continue to have an inflationary impulse, reports the New York Times, while Deutsche Bank issued a report saying that the relaxation of trade with China will not feed a quick cut of interest rates by the Fed.
What moves the market today: the EU is now Trump’s goal
- For the Mining Company Northern Star, based in Perth, obtaining the equipment and materials necessary to operate a gold mine in a remote part of Alaska was already expensive. The commercial war of the US president, Donald Trump, is not helping, and his pogo mine project flirts with becoming profitable or even in losses if a tariff relief does not arrive soon, reports Bloomberg.
- On Monday, President Trump said the US has the advantage in his commercial discussions with the European Union. “The European Union is in many other ways than China. We have barely started with them. We have all the letters. They treated us very unfairly,” Trump said in the White House.
- A great drop in commercial barriers between the US and China reduces the prospects of a serious inflationary supply crisis. Even so, inflation is still stubborn enough for Fed to probably are not in a hurry to cut interest rates, they write economists from Deutsche Bank. Despite the relaxation of the commercial war, “policies will probably maintain inflation at uncomfortably high levels for the Fed,” suggests the Deutsche team. “This announcement reinforces, therefore, our opinion that the Fed will be slow to cut rates this year.” The basic assumption of Deutsche is that the next Fed fees cut will not arrive before December, reportsche Bank reports on a Monday report. The gold and interest rates of the US have an inverse relationship where lower rates often support a higher price of gold and vice versa.
- At 12:30 GMT, the consumer price index (CPI) of the US of April:
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- The general monthly CPC is expected to shoot at 0.3%, from -0.1% deflationary in March. The annual figure is expected to remain stable at 2.4%.
- The underlying monthly CPC is expected to rise to 0.3%, from 0.1% in March. The annual figure is expected to remain unchanged by 2.8%.
Technical analysis of the price of gold: stable for now
“Near, but without cigarettes,” seems to be the situation for President Trump again. Several operators and analysts are cautious with respect to the commercial agreement conceived with China, which is just a 90 -day relief. In addition to reducing tariffs for 90 days, there are no fundamental elements for markets to cling, as future dates for negotiations, issues, additional numbers or anything material to see a continuation of the impulse. It makes sense that experienced operators remain cautious and buy values ​​such as gold after Monday’s correction.
The daily pivot point in $ 3,248 coincides with that key technical level in $ 3,245, the maximum of April 11, identified in previous weeks. From here, it would be healthy to see if gold bundles can push the price again at $ 3,289, resistance R1 for this Tuesday. Above, 3,341 $ could be a stretch, although it would mean a Friday’s maximum test and R2 resistance.
In the lower part, a double ground is being formed about $ 3,195, which coincides with intra -dialy support S1. From there, the next key technical level comes into play at 3,167 $ (maximum of April 3), just before the S2 support at $ 3,155. In the event that these two levels are broken under pressure, the simple mobile average (SMA) of 55 days comes into play at 3,121 $.
Xau/USD: Daily graphic
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
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.
