- The price of gold attracts some DIP buyers after a weaker closing of the second day on Tuesday.
- Permanent uncertainties related to trade and a softer tone of risk bring the benefits of unthreatening goods.
- The reduced feder speed assumes that the plants are a tail for USD and limit the outstanding yellow metal.
The price of gold (Xau/USD) maintains the tone of the offer during the early European session on Wednesday and is currently trading just below USD 3340. Fears of the potential economic fall on the part of the US President Donald Trump’s tariffs, together with the plants that the Federal Reserve (FED) will keep interest rates higher for a longer period, appetite for investors with more risky assets. This is due to the generally weaker tone around the capital markets and helps to revive the demand for unthreatening precious metal after weaker closing the second day on Tuesday.
In addition, a modest American dollar (USD) withdraws from the highest level from June 23, affected after the release slightly stronger than expected in June inflation data, offers additional support for the price of gold. However, the growing acceptance of the FED would delay the reduction of interest rates, among the miniature reception of inflation in the USA, should limit any significant losses and reduce the infalled yellow metal. This, in turn, justifies caution for Bulls Xau/USD as focusing on the release of the American manufacturer’s price index (PPI) later during the North American session.
Daily Digest Market Movers: The price of gold uses a weaker risk tone, retreating USD
- Statistics of US work statistics announced on Tuesday that the main indicator of consumer prices (CPI) increased the most in five months, by 0.3% in June, and the annual rate accelerated to 2.7% from 2.4% in May. Meanwhile, the core meter, which excludes fluctuations in the cost of food and energy, increased by 2.9% y / r / Rz 2.8% in the previous month.
- The data caused concerns about the inflationary effects of the US President Donald Trump and confirmed the factory that the federal reserve would maintain higher rates for a long time. This raised the US tax bond, and the American dollar to the highest level from June 23, pulling the price of gold to a multi -day trough.
- President Boston Fed, Susan Collins, noticed that it is challenging to determine the monetary policy at the moment among uncertainty, and the solid economy gives the American central bank to take on another interest rate traffic. Tariffs can augment inflation in the second half of 2025 and push the core inflation to about 3% until the end of the year, added Boston.
- Separately, President Dallas Fed Lorie Logan said that the basic thing is that monetary policy must stick to for a while to bring inflation. Logan added that tariff increases seem to cause additional inflation pressure for some time, and the early reduction of the rate by the FED risks deeper economic scars on a longer way to price stability.
- Meanwhile, Trump said on Tuesday that 200% of tariffs for pharmaceutical imports would appear by the end of the month. This is based on Trump’s tariff notifications for over 20 countries and 50% tariff for copper imports last week, which keeps investors on the edge and helps safely willing precious metal on Wednesday.
- Traders are now waiting for the American manufacturer’s price index to be released, which was later to be determined during the North American session. In addition, the comments of influential FOMC members will drive USD and provide a fresh impulse of the Xau/USD pair. Meanwhile, mixed basic background justifies caution of aggressive traders.
The price of gold must exceed the $ 3,365 barrier for bulls to maintain compact -term control
From a technical point of view, the goods show a certain resistance below the 100-speed straight movable medium (SMA) on a 4-hour table and for now it seems that he has stopped the slide from a three-week top on Monday. After saying, the oscillators on the aforementioned chart have not yet confirmed the stubborn bias and justify caution before positioning in order to obtain further profits. Therefore, any subsequent movement can confront an immediate obstacle near the region 3 342-3 343 USD, above which the price of gold can again check a horizontal barrier of 3 365-3 366 USD. However, some of the following purchases would prepare the ground in the direction of recovering a round number of USD 3,400.
On the other hand, the weakness below USD 3320 or weekly affected on Tuesday, it is more likely that it will find decent support near the figure of a round of 3300 USD. Then the region 3 283-3 282 USD takes place or during the weekly affected low last Tuesday, which, if it is broken, would make the price of gold to accelerate the correction fall towards the July swing, around 3248-3 $ 247 zone.
Frequently asked risk questions
In the world of financial jargon, two commonly used terms “risk” and “risk” relate to the level of risk that investors are willing to manage in the applied period. humble.
Usually, during “risk” periods of stock market markets will augment, most of the goods-except for gold-will gain value because they benefit from positive development. Currency of nations, which are powerful exporters of goods, strengthen due to increased demand and cryptocurrencies. On the “Risk” market, bonds are growing-especially gigantic government bonds-the gold is shining and unthreatening currencies, such as Japanese Jen, Swiss franc and American dollar.
Australian dollar (AUD), Canadian dollar (CAD), New Zealand dollar (NZD) and smaller FX, such as Rubel (Rub) and Rand Rand (ZAR), all tend to augment markets that are “risky”. This is due to the fact that the economies of these currencies are largely dependent on the export of goods for growth, and the goods tend to augment prices during risk periods. This is due to the fact that investors provide for a greater demand for raw materials in the future due to increased business activity.
The main currencies, which tend to grow during periods of “risk”, are the American dollar (USD), Japanese yen (JPy) and the Swiss franc (CHF). American dollar, because it is a global reserve currency, and because in the time of crisis investors they buy a US government debt, which is seen as unthreatening, because the largest economy in the world will not guess. Jen, from increased demand for Japanese government bonds, because high percentage is kept by domestic investors who will rather lose them – even in crisis. French Swiss, because the strict Swiss banking regulations offer investors to augment capital protection.
