- Xau/USD rallies, like Trump, warns 50% of the EU import tariffs, escalating the trade war and increasing secure demand.
- The US House transfers a budget with a value of $ 4 trillion, and data on voting and Senate inflation.
- Talks about Ukraine and Iran facilitate geopolitical stress, but the markets remain reluctant.
The resumed escalate in the Gold price resumed on Friday, and yellow metal increased nearly 2% a day and 5% per week, because the US dollar (USD) weakened further after US President Donald Trump escaled the “commercial war” with the European Union (EU). This and the misfortunes of investors regarding the American fiscal attitude maintain the prices of higher bulls, and XAU/USD trades 3,59 USD after detaching the lowest level 3287 USD.
Before Wall Street opened, Trump said that discussions with the EU “do not go soon”, threatening to apply 50% tariffs to EU imports on June 1. The Secretary of the US Treasury Scott Bessent also commented: “The president believes that the EU proposals were not the same quality as we saw from other important trading partners.”
Meanwhile, the bullion was strengthened by the transition “One Big Beautiful Bill” by Trump in the American chamber of representatives, which would add almost $ 4 trillions to the US debt ceiling. The bill will then be transferred to the Senate for approval.
On the geopolitical front, the Russian Minister of Foreign Affairs said that work on the memorandum leading to the suspension of weapons in Ukraine is promoted. Meanwhile, the USA and Iran ended on Friday on the fifth round of negotiations in Rome regarding the progressive Tehran nuclear program.
As for data, American housing data in May was mixed because building permits were rolled up, but in April a recent sales of houses improved. In the meantime, a lot of FED speakers run by St. Louis Fed Alberto Musalem and Chicago’s Fed Austan Goolsbee, he crossed news wires.
Next week, the American economic document will contain orders for fixed goods, releasing the last minutes of the Fed meeting, the second estimation GDPand the preferred FED inflation indicator, basic personal consumption price indicator (PCE).
Gold Daily Market Movers: Skyrockets among the risk aversion stimulated with Trump’s comments
- The US tax bond has stopped their progress, and the 10-year profitability of the treasury note fell almost three base points (BPS) to 4.505%. Meanwhile, real yields are also inheritance of 2.4 BPS up to 2.165%.
- Gold prices prospects are confident, taking into account the frail mood of the market in relation to American assets caused by the growing fiscal deficit in the United States, which ignited the reduction of the US government’s debt from AAA to AA1.
- The fiscal package approved by the American lower house is to escalate the debt ceiling by $ 4 trillion.
- The American dollar index (DXY), which tracks the Buck value in relation to the six currencies basket, will drop by over 0.66%, down to 99.24, which is a wind for noble metal denominated by a dollar.
- Permits for the building of the US in April fell from 1.481 million to 1.422 million due to the loss of 4% of mom. On the contrary, the recent sales of houses in the same period increased by 10.9% Mom from 0.67 million to 0.743 million, revealed the office of the Universal List of List.
- Mumalem Fed from St. Louis said that companies are trying to come up with how to manage uncertainty about supply chains, supplies and inflation. Meanwhile, Fed Goologe from Chicago said that the Fed must wait for the dust to heal, the bar for action is higher until it happens.
- Cash markets suggest that traders value valuations at 49.5 base points at the end of the year, according to this Main market terminal data.
XAU/USD Technical perspectives: jumps above USD 3350
Gold price He extended his profits, ready to test $ 3,400 in the near future. The liquid shoot remains sturdy, as the relative strength indicator (RSI) has shown, which is intended to escalate with enough space before it turns.
After saying, the first Xau/USD resistance is USD 3,400, the swing on May 7 is $ 3,438, followed by USD 3,450 and the highest level (ATH) at USD 3500.
On the bear’s side, if Gold They fall below USD 3300, expect to be transferred to the lowest level May 20 $ 3 204, before a 50-day straight movable average (SMA) to USD 3199.
Frequently inflicted by American-chin
In general, the trade war is an economic conflict between two or more countries due to extreme protectionism at one end. This means creating trade barriers such as tariffs that cause a counterattack, escalating import costs, and thus maintenance costs.
The economic conflict between the United States (USA) and China began at the beginning of 2018, when President Donald Trump established trade barriers for China, claiming that unfair commercial practices and theft of intellectual property from the Asian giant. China took retaliation, imposing tariffs on many American goods, such as cars and soy. The tension escalated until both countries signed trade agreements in the American-Chinese phase in January 2020. The agreement required structural reforms and other changes in the Chinese economic and commercial system and pretended to restore stability and trust between two nations. However, Coronevirus’s pandemic focused on the conflict. It is worth mentioning, however, that President Joe Biden, who took office after Trump, kept the tariffs and even added additional fees.
The return of Donald Trump to the White House as 47. The US president caused a fresh wave of tension between two countries. During the election campaign in 2024, Trump undertook to impose a 60% tariff on China after returning to the office, which he did on January 20, 2025. With the return of Trump, the trade war in the USA-China is aimed at resuming where it remained, with the principles of Tatat, influencing the global economic landscape among the global resources, which will reduce, which will reduce, which will reduce, which will reduce, which will reduce, which will reduce, which Especially investments, as well as directly nutrition in indexing consumers.
