Gold price snaps selling off after fresh Trump comments on tariffs

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

  • Gold price edges higher on Thursday after two days of firm selling pressure. 

  • US President Trump backtracks on earlier statements, China may receive a new tariff rate in the next two to three weeks. 

  • Markets are back to square one with equities on the back foot and safe-haven Gold being bid. 


Gold price (XAU/USD) is turning positive, recovering above the $$3,300 level at the time of writing on Thursday after two days of firm selling pressure since it topped at $3,500 on Tuesday. United States (US) President Donald Trump released more comments from the Oval Office late Wednesday, signaling that China may receive a new tariff rate in the next “two to three weeks” while countries that are currently in the negotiation phase might see reciprocal tariffs come in if negotiations are not going the way Trump wants, Bloomberg reports. 


Meanwhile, US Treasury Secretary Scott Bessent said on Wednesday that President Trump’s earlier comments were not an offer to take down US tariffs on China on a unilateral basis. When asked if there was no unilateral offer from the president to de-escalate, Bessent said “not at all”, Bloomberg reports.  The Treasury Secretary said that the administration is looking at multiple factors, not just tariffs, but including non-tariff barriers and government subsidies for China. 


Daily digest market movers: SNB books gain on Gold rush


  • The Swiss National Bank (SNB) has reported that its Gold holdings allowed the central bank to report a profit for the first quarter. The SNB notched up a gain of 6.7 billion Swiss Francs (CHF) from January through March, the central bank said in a statement on Thursday, Bloomberg reports.

  • Gold futures in Shanghai followed the recent sell-off in Gold and priced the largest intraday drop since 2013. Chinese investors rushed to take profit on the assumption that a China-US trade deal was imminent after comments from US President Donald Trump on Tuesday and Wednesday. 

  • Several trading firms are still signaling healthy buying taking place in Gold. “The temporary reprieve from Trump has fizzled out,” said Priyanka Sachdeva, a Singapore-based analyst at Philip Nova Pte. “Investors who missed the dip-buying wagon earlier in April drove the rise today.”, Bloomberg reports. 


Gold Price Technical Analysis: Half-baked


Bullion is seeing a slight recovery on Thursday and trades again above $3,300 after a quite harsh correction. Technical traders, though, might not be that rejoicing when looking at the daily price action, with Gold rejected on the topside at $3,367 earlier in the day, which roughly coincides with the daily R1 resistance at $3,363.


Looking at technical levels, the daily Pivot Point at $3,311 has already been recovered in early Asian trading, with the R1 intraday resistance already tested and rejected at $3,363. Further up, Gold price could extend the rally to the R2 resistance at $3,438.


On the downside, a floor is being formed near $3,245 (April 11 high) as an important technical pivotal level, with the S1 support at $3,236 just underneath it. In case that area does not hold, the S2 support at $3,185 and the technical pivotal level at $3,167 (April 3 high) should hold any downside pressure. 



XAU/USD: Daily Chart


* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Gold price hits two-week high as USD declines on deteriorating US fiscal outlookGold price (XAU/USD) prolongs the uptrend for the fourth consecutive day and climbs to a nearly two-week high, around the $3,344-3,345 area during the Asian session on Thursday.
Author  FXStreet
2 hours ago
Gold price (XAU/USD) prolongs the uptrend for the fourth consecutive day and climbs to a nearly two-week high, around the $3,344-3,345 area during the Asian session on Thursday.
placeholder
Gold edges higher, reclaiming $3,300, on rising geopolitical tensions and US fiscal woesGold (XAU/USD) breaks higher on Wednesday towards $3,308 at the time of writing, fueled by concerns that tensions in the Middle East might spiral out of control again and US fiscal woes. In late trading on Tuesday, CNN reported that Israel is considering targeting nuclear sites in Iran.
Author  FXStreet
Yesterday 09: 24
Gold (XAU/USD) breaks higher on Wednesday towards $3,308 at the time of writing, fueled by concerns that tensions in the Middle East might spiral out of control again and US fiscal woes. In late trading on Tuesday, CNN reported that Israel is considering targeting nuclear sites in Iran.
placeholder
Gold price retakes $3,300 amid a broadly weaker USD and reviving safe-haven demandGold price (XAU/USD) prolongs its weekly uptrend for the third straight day and climbs further beyond the $3,300 mark, to a one-and-a-half-week high during the Asian session on Wednesday.
Author  FXStreet
Yesterday 06: 03
Gold price (XAU/USD) prolongs its weekly uptrend for the third straight day and climbs further beyond the $3,300 mark, to a one-and-a-half-week high during the Asian session on Wednesday.
placeholder
Israel Allegedly Preparing to Strike Iranian Nuclear Facilities—Gold Surges Past $3,300!  CNN reports that Israel is reportedly preparing an attack on Iran’s nuclear facilities, driving gold prices sharply higher, reclaiming $3,300 and potentially heading for new record highs.
Author  TradingKey
Yesterday 03: 48
CNN reports that Israel is reportedly preparing an attack on Iran’s nuclear facilities, driving gold prices sharply higher, reclaiming $3,300 and potentially heading for new record highs.
placeholder
Gold price edges lower amid easing haven demand, headwinds from Fed and TrumpGold (XAU/USD) price edges slightly lower on Tuesday, looking for direction after giving back the previous day’s gains, falling back to around $3,226 at the time of writing.
Author  FXStreet
May 20, Tue
Gold (XAU/USD) price edges slightly lower on Tuesday, looking for direction after giving back the previous day’s gains, falling back to around $3,226 at the time of writing.
Real-time Quote