Gold (XAU/USD) edges higher to $3,180 in early Asian trading as easing trade tensions reduce safe-haven demand. Key US economic data and Fed commentary in focus today.
The Gold price (XAU/USD) is trading modestly higher near $3,180 in Thursday’s Asian session, recovering slightly from recent losses. However, improving risk appetite and progress in US-China trade negotiations may limit further upside for the precious metal.
Key Factors Influencing Gold Prices Today
1. Easing Trade War Tensions Weigh on Safe-Haven Demand
US and China agree to reduce tariffs after negotiations in Geneva.
US cuts tariffs on Chinese goods from 145% to 30%.
China lowers tariffs on US imports from 125% to 10%.
Iran signals willingness for a nuclear deal, easing geopolitical risks.
Ole Hansen, Saxo Bank’s Head of Commodity Strategy, noted:
“Improved risk sentiment has temporarily reduced gold’s appeal as a safe-haven asset.”
2. US Economic Data in Focus
Today’s market-moving events include:
US April Retail Sales – A key indicator of consumer spending.
Producer Price Index (PPI) – Inflation insights ahead of next Fed meeting.
Fed Chair Jerome Powell’s speech – Any hints on interest rate policy could impact gold prices.
3. Gold Price Outlook: Resistance and Support Levels
Short-term resistance: $3,200 (psychological barrier).
Support level: $3,150 (recent low).
A break above $3,200 could signal further gains, while a drop below $3,150 may extend losses.
Will Gold Rebound or Extend Losses?
While reduced trade tensions are pressuring gold, several factors could still support prices:
✔ Ongoing geopolitical risks (Middle East tensions, US-China relations).
✔ Potential Fed rate cut speculation if US data disappoints.
✔ Weaker US Dollar could boost gold’s appeal.
Gold Price Forecast: What’s Next?
Bullish Scenario: Weak US economic data or dovish Fed signals could push gold toward $3,250.
Bearish Scenario: Strong retail sales and hawkish Fed comments may drive prices back to $3,100.
Conclusion: Should Traders Buy or Sell Gold Now?
Gold’s near-term direction hinges on:
🔹 US economic data releases (Retail Sales, PPI).
🔹 Fed Chair Powell’s remarks.
🔹 Further developments in US-China trade talks.
Traders should monitor these catalysts before taking new positions. A cautious approach is recommended until clearer trends emerge.
Gold Trading Tips for Today
📌 Watch $3,150 support – A break lower could signal further declines.
📌 Key resistance at $3,200 – A breakout may confirm bullish momentum.
📌 Fed speech impact – Powell’s tone could drive volatility.
