Gold is expanding its bull to a tender American dollar, commercial tensions

Gold prices are published by fresh all time, nearly USD 3,400, when Trump is thinking about removing Fed Powell for supporting the “Wait and see” approach in relation to interest rates.
Questions about the independence of the Fed significantly burdened the US dollar.
President Trump expresses confidence in commercial talks with several trade partners

The price of gold (Xau/USD) refreshes the highest levels to almost USD 3,400 at the beginning of the week. The precious metal strengthens when the bleeding of the American dollar (USD) and the independence of the Federal Reserve (FED) is threatened when the President of the United States (USA) Donald Trump believes that the removal of the chairman of the FED chairman Jerome Powell.

The American dollar index (DXY), which follows the Greenback value compared to the six main currencies, will drop to almost 98.00, the lowest level in three years. A technically tender American dollar makes gold a bargain plant for investors.

US President Trump criticizes Powell for not reducing interest rates, despite the fact that the prices of some goods and oil have dropped significantly. “Fed really owes the American nation to lower interest rates. This is the only thing for which he is good,” said Trump and added – “I’m not happy with it. If I want him, it will be really fast, believe me,” said Trump on Friday.

Meanwhile, the economic advisor of the White House Kevin Hassett also confirmed that the president and his team are looking for ways to throw Fed Powell. “The president and his team will continue to study this matter,” said Hassett on Friday.

Participants of the financial market recognized these comments as negative for the prospects of the American dollar, because they raise questions about the independence of the Fed from political operations, forcing them to further reduce the unthreatening status.

Recently, the constantly changing headers from Washington in their tariff program forced investors to re -assess the status of the American dollar as a “reserve currency”. Market experts believe that Donald Trump’s imposition on the worse than expected tariffs is painful for the US economy itself. Theoretically increasing economic worries in the US improve the unthreatening demand for precious metals, such as gold.

Daily Digest Market Movers: The price of gold could decrease if the global economic uncertainty decreases

The price of gold applies to steroids due to escalated commercial tensions and the weakness of the American dollar. However, a unthreatening demand for precious metal may soon decrease as US partners progress in commercial talks.
US President Trump expressed confidence in the contract with Japan and Mexico after meeting representatives last week. “I had a very productive call with the President of Mexico yesterday. Similarly, I met Japanese representatives of the highest level trade. It was a very productive meeting. Every nation, including China, wants to meet! Today, Italy! US President Donald Trump wrote on Thursday on the Platform of Truth.
On a long weekend, due to Holy Friday, Trump said: “There will be a trade agreement, 100%” and added: “But it will be an honest offer.” His comments appeared after the meeting with the Prime Minister of Italy (prime minister) Giorgia Meloni, the first leader of the European Union (EU), who will meet Trump after the announcement of mutual tariffs.
Meanwhile, President Trump is also convinced of a contract with China. “We have nice conversations with China. It’s really very good,” said Trump on Friday. In addition, American trade secretary Howard Lutnick also expressed optimism against the US-China trade agreement and said at the weekend: “We are convinced that it will work with China.”
Market participants expect that the closing of trade agreements between the USA and its trading partners, especially China, will lead to the reversal of mutual tariffs announced by Trump. This scenario will reduce global economic uncertainty and burden the unthreatening demand of precious metals.

Technical analysis: golden rallies to almost USD 3,400

The price of gold increases on Monday to almost USD 3,400. The precious metal showed a robust explosion for over a week after the turn of the annual growing channel formed on the journal. Up to the border of the above -mentioned chart pattern, it has been deleted from April 12, 2024, the highest in the amount of USD 2,431, while the lower limit has been placed from February 15, 2024, low 1,990.30 USD.

All compact and long interpretation medium movable (EMA) fall higher, which is suggested by a robust upward trend.

The 14-day relative strength (RSI) indicator jumps to almost 75.00, which indicates a robust stubborn shoot, although in purchased conditions.

Looking down, the highest level of April 11 3245 USD will act as a key support zone for a couple. On the other hand, a round level resistance of $ 3500 will act as a key resistance zone when the gold drops above $ 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 operate of jewelry, precious metal is widely seen as a unthreatening 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 augment 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 augment the EskaLA gold prices due to its unthreatening 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.

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