- Gold goes back from $ 3357 of all time, because Powell warns Fed’s goals, they can conflict, increasing stagflation concerns.
- Mixed market: Dow is immersed in the Unitedhealth disaster, while other indexes see modest profits.
- Trump signals the progress of trade with the EU and China; EBC lowers the 25 BPS indicator, expanding the global discrepancy of politics.
Gold withdrew on Thursday before the Easter Easter wagon, losing 0.60%, after gaining profits of almost USD 400 in the last seven commercial days of uncertainty as to the United States commercial policy (USA). /USD trades at USD 3319 after reaching a record level of USD 3357 earlier in the session.
The market mood closed the last trade day of the week, with two of the three main American indexes, and the Unitedhealth Group group hit Dow Jones. Wednesday speech of the chairman of the Federal Reserve (FED) Jerome Powell It is still digested by markets.
The chairman of Fed Powell became Hawkish, revealing that the frail economy and high inflation can be contrary to the two central bank goals, enabling a stagflation scenario.
“We can find ourselves in a difficult scenario in which our double goals are tense,” he said. “If that happened, we would think about how far the economy is from every goal, and potentially different time horizons over which these appropriate gaps would be expected.”
When it comes to commercial talks, Trump said he was doing well and added that he was very sure of the trade agreement with the European Union (EU) and China.
In terms of data, European Central Bank (EBC) reduced rates with 25 base points earlier and US Economic Docket It was revealed that the American labor market remains solid, but not so housing, after printing forceful building permits, but frail apartments begin.
Daily Digest Market Movers: Gold Price decreases when the US Resust grows
- 10 years of the US Treasury performance increases five base points to 4.333%. Real real real, climbing five BPS up to 2.163%, as 10-year-old securities in the US shows, which does not limit gold prices.
- The initial unemployed claims in the USA for a week ending on April 12 brought 215,000, down from 224 thousand. And below the forecast 225 thousand – high strength on the labor market.
- Building permits increased by 1.6% to 1.482 million, exceeding 1.45 million estimates. In contrast, the start of the housing rapidly dropped from 1.494 million to 1.324 million, which indicates softness in housing.
- On the markets of the money market, the sales market valued at 86 base points of FED rates until the end of 2025, with the first reduction expected in July.
XAU/USD Technical perspectives: gold prices, but remains ready to test fresh records
Increasing up Gold Prices remain despite withdrawal on Thursday, below USD 3330. When precious metals cut some of their earlier losses, the price action indicates a lack of acceptance of lower prices, opening the door to further growth.
From the point of view of the rush, the relative force indicator (RSI) is purchased, but not close to the extreme level 80. Nevertheless, because RSI strives to below, it suggests that the cards are on average return. In the case of this result, the first XAU/USD support would be USD 3300. The violation of the latter will be revealed on April 16 the lowest lowest level 3229 USD.
If the bulls raise prices above USD 3350, they can test the peak of the year (YTD), followed by 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 exploit of jewelry, precious metal is widely seen as a sheltered 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 escalate 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 escalate the EskaLA gold prices due to its sheltered 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 forceful dollar tends to maintain the price of gold price, while a weaker dollar can raise gold prices.
