Last week XAU/USD settled at $ 2861.25, an increase of $ 63.31 or +2.26%.
Technically, the most important trend is up. A trade by $ 2886.86 will indicate a resumption of the upward trend. The closest support is the former top for $ 2790.17. Although we do not expect trend change, the market runs the risk of a shift in Momentum or a short -term correction.
Tarif battle are arranged again while China returns
Gold’s newest leg higher was fed by renewed trade tensions in the US china. President Trump imposed new rates on Chinese goods and granted a temporary delay to Mexico and Canada. In response, Beijing introduced retaliation rights, including a rate of 15% on the American liquid natural gas.
These trade disruptions have fueled inflation problems, because higher import costs are in danger of increasing consumer prices. Now that the FED is already careful with austerity, long -term tariff fights can slow down the policy improvement, so that Gold’s profession is further supported as inflation.
Fed is determined as the inflation risks increase
The Federal Reserve kept its benchmark percentage at 4.25% -4.50% in its most recent meeting and emphasized the need for sustainable progress on inflation before the cutbacks are considered. Various FED officials warned that tariff-controlled price pressure could keep the policy tighter for longer than the markets expect.
Bond markets reflected this uncertainty, with the treasury revenues being firm. The 10-year yield was higher and signales the skepticism of investors above the speed reductions in the short term. In the meantime, the US dollar remained resilient, which limited Gold’s benefit, but the wider upward trend did not derail.