- Gold goes back while DXY rises 0.27%, limiting the recovery of precious metal despite the weak economic data of the USA.
- Trump suggests the possibility of reducing cars tariffs, promoting actions and reducing flows to safe shelters.
- Operators prepare for the publication of key US data, including GDP, underlying PCE and NFP figures.
The price of gold goes back during the American session on Tuesday while the dollar seems to recover, registering modest profits in the softest economic data medium in the US and a lower demand for safe shelters. At the time of writing, the XAU/USD is quoted at $ 3,323, with a 0.60%drop.
The United States shares markets (USA) continued to rise as investors were optimistic that President Donald Trump could reduce tariffs on cars, car parts and trucks, and soften the US position with respect to China. Meanwhile, an indicator of the value of the dollar against six currencies, the index of the US dollar (DXY), rose 0.27% above the level of 99.00 after reaching an annual minimum of 97.92 on April 21, limiting the advance of gold.
The US Treasury Secretary, Scott Besent, made statements at the White House, saying that there were some advances in commercial negotiations with India and Japan, but did not clarify the “conversations” between the US and Beijing.
To date, the prices of the ingots had registered a 25% gain promoted by uncertainty about US commercial policies and a federal reserve (Fed) less Dovish. However, the US economic calendar suggests that the labor market begins to soften, while the consumer trusted index of the Board Conference (CB) showed that households have become pessimistic about economic perspectives.
This week, the operators are pointing to the publication of US economic data, mainly hard data, including gross domestic product (GDP) data for the first quarter of 2025, the Personal Consumer Expenses Price Index (PCE) and underlying non -agricultural name figures.
What moves the market today: the price of gold goes back without being affected by the fall of yields in the US.
- The US Treasury bonus yield to 10 years falls three and a half basic points, reaching 4.17%.
- The real US yet yields collapsed three PB to 1.92%, as shown by the yields of the US treasure values protected against inflation at 10 years.
- The US Department of Labor reported that Jolts employment offers fell to 7,192 million in March, the lowest level since September. This was below the expectations of 7.5 million and fell from 7.48 million the previous month, pointing out a weaker labor demand.
- The US Conference Board Conference Board Index fell to 86.0 in April, its lowest level in almost five years, going down from 93.9 and below the 87.5 forecast, reflecting an increase in pessimism among consumers.
- The risks that the global economy enters recession is increasing, according to a Reuters survey.
Technical perspective of the Xau/USD: It remains bullish but is about to test the $ 3,200
The upward trend of the price of gold remains intact, but during the last five days of negotiation, the Xau/USD was consolidated within the range of $ 3,260 to $ 3.386, without being able to take off below the figure of $ 3,200 or above the 3,400 $ brand.
As measured by the relative force index (RSI), the impulse remains bullish, but the slope of the index is falling towards its neutral line. This indicates that neither buyers nor sellers are in command.
If the Xau/USD falls below $ 3,300, the following support would be the minimum of April 23, $ 3,260 before falling to $ 3,200. On the contrary, if gold rises above $ 3,400, the following resistance would be $ 3,450 before the historical maximum of $ 3,500.
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.
