- Golden centuries 90 USD this week, because the American dollar is weakened in connection with growing trade tensions and geopolitical risk.
- Daly Fed claims that politics is still restrictive; Neutral speed can raise, reflecting the Jastrzębi tone of Powell.
- Traders focus on key data in the US next week: Flash PMI, robust goods and end -of -end consumers.
Gold prices will end the week with a positive note by over 2.79%, because the precious metal enjoyed USD 90 American dollar (USD) Because of the last weakness sponsored by uncertainty about global trade. At the time of writing, Xau/USD trades on 3,326 USD.
XAU/USD is 3,326 USD after reaching ATH in the amount of $ 3,58; Real yields are growing, but a long weekend profit rally
European and American markets are closed because of the long Easter weekend, so the flows of the message are delicate. The President of the Federal Reserve in San Francisco (Fed) Mary Dasy crossed the wires and said that the economy is in a good place, although some sectors tardy down. She added that the policy remains restrictive in a good place, exerting pressure down to inflation, and added that neutral rates could “grow”.
The prices of ores fell after reaching the highest level (ATH) in the amount of USD 3,58, because traders reserved profits due to the long weekend. Wednesday hawk speech through the Fed chair Jerome Powell Limited the progress of precious metals, although uncertainty about the trade policy in the USA and geopolitical risk can be the basis Gold Prices.
Performance increases, with 10-year T profitability in the USA five base points to 4.333%. The actual American profitability, which are calculated on the basis of nominal performance, minus inflation expectations, climb five BP to 2.163%, which is a wind for gold prices.
Next week US Economic Docket There will be a wave of FED speakers, S&P Global Flash PMI, orders for enduring goods and recent reading of consumer moods of the University of Michigan.
Price forecast XAU/USD: Technical perspectives
Uptrend Gold remains intact despite Thursday withdrawal below USD 3330. As the prices recover some earlier losses, the lack of subsequent defects suggests restricted acceptance of lower levels, maintaining the open door for further benefits.
In terms of momentum, the relative force indicator (RSI) remains purchased, but not yet at an extreme level of 80. However, the average inversion movement may occur on the horizon, and the RSI decreased lower.
In this case, the initial support is USD 3300, and then from 16 April at USD 3229. On the other hand, a break above USD 3350 could establish a year test (YTD), and the next goal is USD 3,400.
Gold often asked questions
Gold played a key role in human history because it was widely used as a magazine of values and an exchange medium. Currently, in addition to gloss and the apply of jewelry, precious metal is widely seen as a secure resource, which means that it is considered a good investment during turbulent time. Gold is also commonly perceived as protection against inflation and against the cushioning currencies, because it is not based on any specific issuer or government.
Central banks are the largest owners of gold. In order to support their currencies in turbulent times, central banks tend to diversify their reserves and buy gold to improve the perceived force of the economy and currency. High gold reserves can be a source of trust in the solvency of the country. Central banks added 1136 tons of gold worth about $ 70 billion to their reserves in 2022, according to world gold data. This is the highest annual purchase from the beginning of records. Central banks from emerging economies, such as China, India and Türkiye, quickly raise their gold reserves.
Gold has a reverse correlation with the US dollar and the American treasure, which are both the main reserves and safer resources. When the dollar absorbs, gold increases, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. The rally on the stock exchange tends to weaken the price of gold, while the sale in more risky markets favors precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fear of a deep recession can quickly raise the EskaLA gold prices due to its secure status. As a homeless resource, gold grows at lower percentage rates, while the higher cost of money is usually burdened with yellow metal. Despite this, most of the movements depend on how the US dollar (USD) behaves when the resource is valued in dollars (Xau/USD). This robust dollar tends to maintain the price of gold price, while a weaker dollar can raise gold prices.
