The price of gold is submerged to a minimum of more than a month, it seems vulnerable near the 3,150 $ area

• The price of gold continues to lose ground on Thursday and is pressured by a combination of factors.
• Commercial optimism between the US and China Socava the gold refuge gold amid the increase in US bond yields.
• The operators now expect the US CPI and the speech of the president of the FED, Jerome Powell, to obtain a new impulse.

The price of gold (Xau/USD) falls for the second consecutive day, also marking its third day of negative movement in the last four, and descends to a minimum of more than a month, below the level of $ 3,150 during Thursday’s Asian session. The optimism led by the de -escalation of a potentially harmful commercial war between the US and China – the two largest economies in the world – turns out to be a key factor that continues to undermine the gold of safe refuge. In addition, the commercial truce between the US and China for 90 days has relieved concerns about a recession in the US and has forced investors to reduce their bets for a more aggressive policy relief by the Federal Reserve (FED). This continues to support an additional increase in the yield bonds of the US and contributes to divert flows from the yellow metal that does not yield.

Meanwhile, the US dollar (USD) struggles to capitalize on the positive rebound of the previous day from the weekly minimum despite the aforementioned support of support. However, this is recently to provide support to the price of gold. Even a slight deterioration in the feeling of global risk, as indicated by a generally weaker tone around variable rental markets, does not help the precious metal to attract significant buyers. Apart from this, the rupture and closure below the 3,200 $ brand suggests that the least resistance path for the Xau/USD is down. The operators now expect the publication of the US Production Price Index (IPP) and the appearance of the Fed President Jerome Powell, to obtain clues about the trajectory of feat cuts, which should provide a new impulse to the merchandise.

Daily summary of market movements: the price of gold remains weighed by commercial optimism and the reduction of bets for aggressive fed rate cuts

• The US and China agreed to drastically reduce tariffs for at least 90 days. In addition, US president Donald Trump said Tuesday that he could see himself directly dealing with Chinese President Xi Jinping, about the details of a commercial pact.
• This helps to relieve market concerns about a slowdown in the world’s largest economy and drag the price of safe refuge gold to a minimum of more than a month on Thursday amid expectations of less cuts of interest rates by the Federal Reserve.
• The operators are now valuing a little more than 50 basic points of FED fees cuts for the year, below more than a complete percentage point of reductions valued last month. This raises the 10 -year Treasury bond performance at its highest level in a month.
• The Vice President of the Fed, Philip Jefferson, warned that the announced tariffs and uncertainty about US commercial policy could derail any recent progress in inflation. Jefferson added that recent inflation data shows additional progress towards the 2% objective and described the current policy position as well positioned to respond to developments that may arise.
• In addition, the president of the Chicago Fed, Austen Goolsbee, said that some parts of the April Inflation Report represent the matched nature of the data, and will take time for current inflation tendencies to be reflected in the data. Goolsbee added that it is now a time for the US Central Bank to wait for more information and try to overcome noise in the data.
• For its part, the president of the Fed of San Francisco, Mary Daly, said that the US economy and the labor market are solid, and inflation is decreasing. With a moderately but not excessively restrictive monetary policy, the US Central Bank can expect to adjust interest rates amid uncertainty and respond to what arises in the economy, Daly added.
• However, the US dollar bundles seem reluctant and choose to wait for the publication of the US Production Price Index, which is expected later during the North American session. Apart from this, the appearance of the president of the FED, Jerome Powell, will be observed in search of clues about the future trajectory of feat cuts, which will boost the USD and provide a new impulse to the Xau/USD pair.
• Ukrainian President Zelenskyy had said that he would surely attend the first peace conversations with Russia, scheduled for this Thursday in Istanbul. However, Kremlin announced that Russian President Vladimir Putin will skip the meeting.
• The Israeli army said Wednesday that he intercepted a missile from Yemen to his territory. In a new escalation of violence in the region, an intense wave of Israeli bombings on Wednesday killed up to 80 people in Gaza. This maintains the geopolitical risks at stake, although recently to provide support to the precious metal.

The price of gold breaks below the 61.8% FIBO level, seems vulnerable to falling more to the support zone of 3,135-3.133

From a technical perspective, the night break below the 3,200 $ brand and a subsequent fall below the 61.8% fibonacci recoil level of the strong upward movement in April could be seen as a new trigger for bass operators. In addition, the oscillators in the daily chart have begun to gain negative traction, suggesting that the price of gold could extend the fall to the support zone of 3,135-3,133 $. Some continuation sales have the potential to drag to the Xau/USD pair towards the 300 $ brand, which, if it breaks, could expose the following relevant support near the 3,060 $ region.

On the other hand, an attempt to recover above the region of 3,168-3.170 $ (level of 61.8% FIBO) could now face a strong resistance before the $ 3,200 mark, or the peak of the Asian session. Any additional movement could now be seen as a sale opportunity and runs the risk of quickly fading near the $ 3,230 area, or the 50%setback level. The latter should act as a pivotal point, above which a new short coverage movement could raise the price of gold to the intermediate obstacle of $ 3,265 en route to the round figure of $ 3,300 (level of 38.2% FIBO).