empty
01.05.2025 11:40 AM
Why Gold Is Falling for the Third Consecutive Day

Gold is declining for the third straight day amid signs of potential progress in trade negotiations between the U.S. and several other countries, which is dampening demand for safe-haven assets—even as signs of economic slowdown emerge in major economies. These positive signals reduce the appeal of gold as a reliable safe-haven asset, despite concerning indicators of economic deceleration in the world's leading economies.

This image is no longer relevant

Investors, previously worried about the prospects of a global recession, are now looking hopefully at the potential resolution of trade disputes. Expectations of trade deals are pushing them toward higher-risk assets like equities, which weakens demand for gold. However, despite the optimism, concerns remain about the long-term stability of the global economy. Recent data points to a slowdown in the growth of the U.S. economy, which could renew interest in gold as a hedge against economic shocks.

In the short term, gold price dynamics will likely depend on the progress of trade negotiations and macroeconomic statistics. If progress on trade continues, pressure on gold will persist. Conversely, if economic outlooks deteriorate, gold may regain its position as a safe-haven asset.

As of yesterday, gold prices dropped 1.8% after U.S. Trade Representative Donald Trump's office stated that the first tranche of trade deals was close to being announced. Adding to the optimism, China Central Television reported that the U.S. had reached out to Beijing through multiple channels.

Still, gold remains near this year's highs after hitting a record above $3,500 last week. That surge was largely driven by investors seeking safety in gold, as Trump's fast-changing trade policies roiled markets and intensified fears of a global slowdown. Speculative demand in China and purchases by central banks also supported the rally.

As noted earlier, the U.S. economy contracted at the start of the year for the first time since 2022 due to a massive spike in imports ahead of tariff implementation. This prompted traders to ramp up bets on monetary policy easing in the U.S., with four quarter-point rate cuts already priced in by the Federal Reserve for this year to help stave off recession. Lower rates are generally positive for gold prices, as the metal does not yield interest.

Looking ahead, an important U.S. monthly jobs report is due Friday, which is expected to shed more light on the initial economic impact of Trump's trade policies.

This image is no longer relevant

As for the current technical picture of gold, buyers need to reclaim the nearest resistance at $3,255. This would allow for a potential move toward $3,296, above which breaking through will be quite challenging. The ultimate target would be the $3,347 level. In the event of a decline, bears will aim to take control at $3,209. If successful, a breakout below this range would deal a serious blow to bullish positions and push gold down to the $3,166 low with a potential slide toward $3,116.

Summary
Urgency
Analytic
Pavel Vlasov
Start trade
Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO

Recommended Stories

USD/JPY. El yen y la política: un lunes difícil para la moneda japonesa

Al inicio de la nueva semana de negociación, el par USD/JPY no puede determinar la dirección de su movimiento. Los traders no logran decidir cómo reaccionar ante las elecciones

Irina Manzenko 12:03 2025-07-21 UTC+2

La UE prepara un contraataque

Durante el fin de semana se supo que EE. UU. impondrá aranceles del 30% a todos los productos de la UE a partir del 1 de agosto de este

Jakub Novak 10:58 2025-07-14 UTC+2

Análisis del par GBP/USD. El 14 de julio. Tranquilidad, solo tranquilidad.

El par de divisas GBP/USD mostró una caída bastante significativa durante el viernes. En general, la libra esterlina ha estado cayendo durante 2 semanas, y este es un hecho

Paolo Greco 07:49 2025-07-14 UTC+2

Análisis del par EUR/USD. El 14 de julio. La posición de la Fed y Trump permanece sin cambios.

El par de divisas EUR/USD continuó el viernes con un movimiento descendente suave y débil. Como ya hemos mencionado muchas veces, el movimiento actual es una corrección en estado puro

Paolo Greco 07:49 2025-07-14 UTC+2

El oro volvió a subir

El precio del oro se estabilizó después de un fuerte aumento observado durante la sesión asiática de hoy. Los operadores siguen prestando mucha atención a las amenazas de imposición

Jakub Novak 10:31 2025-07-11 UTC+2

Análisis del par GBP/USD. El 9 de julio. ¿Qué implica la "Ley maravillosa" de Trump?

El par de divisas GBP/USD durante el martes volvió a moverse a la baja, lo cual sigue causando cada vez más sorpresa. Por supuesto, ya hemos dicho en múltiples ocasiones

Paolo Greco 05:22 2025-07-09 UTC+2

Análisis del par EUR/USD. El 9 de julio. ¿Qué juego está jugando Trump con los aranceles?

El par de divisas EUR/USD durante el martes mantuvo un ánimo de corrección. No hubo eventos macroeconómicos en este día, sin embargo, Donald Trump "leyó toda la lista" de países

Paolo Greco 05:22 2025-07-09 UTC+2

Análisis del par GBP/USD. El 8 de julio. Nadie necesita más el dólar, Trump está indignado.

El par de divisas GBP/USD durante el lunes descendió ligeramente, pero todavía no se puede hablar de una tendencia bajista. Desde el punto de vista técnico, el par permanece

Paolo Greco 07:54 2025-07-08 UTC+2

Análisis del par EUR/USD. El 8 de julio. Elegante. Donald Trump prolongó los plazos del "período de gracia".

El par de divisas EUR/USD se negoció durante el lunes con una inclinación bajista, aunque probablemente no hubo motivos de peso para el fortalecimiento del dólar. Recordemos que durante

Paolo Greco 07:54 2025-07-08 UTC+2

Análisis del par GBP/USD. El 7 de julio. El mercado vuelve a posponer sus expectativas sobre el recorte de tasas de la Fed.

El par de divisas GBP/USD también se mantuvo en el mismo lugar durante el viernes, ya que en ese día la sesión comercial estadounidense, en esencia, no funcionaba. No hubo

Paolo Greco 07:26 2025-07-07 UTC+2
¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.