The price of gold returns to $ 3,300

• The price of gold rises for the third consecutive day in the middle of a sustained vendor bias of the USD.
• US fiscal concerns and Fed rates cutting bets drag USD to a minimum of almost two weeks.
• Commercial tensions between the US and China and geopolitical risks further benefit from the Xau/USD.

The price of gold (Xau/usd) prolongs its weekly upward trend for the third consecutive day and goes beyond the 300 $ brand, reaching a maximum of a week and a half during the Asian session on Wednesday. The American dollar seller (USD) remains unchanged in the midst of US tax concerns, which led to a reduction in the sovereign credit rating of the US government last Friday. This, in turn, is considered a key factor that acts as a tail wind for merchandise.

Meanwhile, Federal Reserve officials (FED) adopted a cautious tone about the economic perspectives of the USA. In addition, renewed commercial tensions between the US and China support the perspectives of an additional short -term appreciation movement for the precious metal of safe refuge.

What moves the market today: the price of gold is supported by a combination of factors; seems prepared to appreciate even more

• The president of the United States, Donald Trump, presses the Republicans of the Chamber to approve their broad fiscal bill, which could add between 3 and 5 billion dollars to the already heavy debt load in the country. This occurs after Moody’s reduced the Credit Credit Qualification of the US government last Friday, citing growing deficits, which are still weighing on the US dollar and raise the price of gold above the 3,300 $ brand on Wednesday.
• Federal Reserve officials on Tuesday expressed concerns about the economic perspectives of the US in the midst of uncertainty linked to Trump’s commercial policies. In fact, the president of the Fed of Cleveland, Beth Hammack, sees an increase in the probabilities of a stagflation scenario and said that uncertainty about the commercial policies of the US government makes it increasingly difficult for those responsible for policy managing the economy.
• Separately, the president of the Fed of St. Louis, Alberto Musalem, said that companies and households are containing in their decisions amid uncertainty, which could affect economic perspectives. In addition, the president of the Fed of Atlanta, Raphael Bostic, warned that the US economy will see a slowdown in the activity and how consumers will respond to another round of inflation.
• The data published last week pointed to signs of a decrease inflation, while the disappointing number of monthly retail sales of the United States increased the probability of several quarters of slow growth. This should allow Fed to maintain their policy relaxation bias. In addition, the operators are currently valuing the possibility of at least two rate cuts of 25 basic points by the end of this year.
• China accused the US of abusing export control measures and said the Trump administration is violating the trade agreements of Geneva. In fact, the US issued a guide warning companies that do not use the Huawei Ascend chips. China’s Ministry of Commerce said Wednesday that US measures on advanced chips are “typical of unilateral harassment and protectionism.”
• CNN, citing several American officials aware of the developments, reported on Tuesday that new intelligence collected by the USA indicates that Israel is preparing for possible attacks on Iran’s nuclear sites. This maintains the geopolitical risks at stake, which should provide an additional impulse to the XAU/USD torque and support the perspectives of an additional short -term appreciation movement.

The price of gold could aim to test the following relevant obstacle near the area of ​​3,360-3.365 before trying to recover the 3,400 mark

From a technical perspective, the rupture sustained during the night above the 3,250-3,260 region, which coincided with the simple mobile average (SMA) of 200 periods in the 4-hour graph, was seen as a key trigger for upward operators. A subsequent movement beyond the $ 3,300 mark and positive oscillators in schedules/day validate the short-term constructive perspective for the price of gold. Therefore, some follow-up force towards the test of the following relevant obstacle, around the horizontal zone of 3,360-3.365, it seems a different possibility. The impulse could extend even more and allow the Xau/USD to recover the round figure of $ 3,400.

On the other hand, the weakness below the minimum of the Asian session, around the 3,285 $ region, is more likely to attract new buyers and remain limited near the resistance turned into a support of 3,260-3.250 $. However, a convincing rupture below the latter could cause some technical sales and drag the price of gold towards the 3,200 $ brand. This is closely followed by the support of 3,178-3.177 $, below which the XAU/USD could accelerate the fall towards the minimum last week, around the area of ​​$ 3,120, or the lowest level since April 10, en route to the 3,100 $ mark.