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- The price of gold remains on a defense near 3,235 dollars in the early Asian session on Friday.
- The cancellation of the escalation in the global trade conflict still undermines the price of gold.
- Merchants of the American Employment Report in April, which is scheduled to be later on Friday.
The price of gold (Xau/USD) is lost to the lowest level in two weeks near 3,235 dollars during the early Asian session on Friday. Reducing trade tensions between the United States and its commercial partners has led to an increase in demand for safe calm, which weighs by facing precious metal.
US President Donald Trump has announced possible trade deals with India, South Korea and Japan, which seeks to transform the policy of customs tariffs into trade agreements. Moreover, the Chinese government media said late on Thursday that the United States had arrived in Tuchina to start trade talks on Trump’s tariff by 145 %.
The US dollar (USD) strengthens this positive development, making gold less attractive to other currency buyers. “The market believes that trade tensions are ignoring, and it is less concerned about the independence of the Federal Reserve, which reduces the demand for safe assets at the present time,” said Giovanni Stonovo, an UBS analyst.
Following the weakest of the weakest US local products (GDP) that was released on Wednesday, markets are now pricing higher opportunities in Federal Reserve Prices (Fed), although everything depends on commercial deals. This, in turn, may enhance the price of non -return gold.
The US recruitment report in April will be the most prominent later on Friday because it may push the Federal Reserve of the United States to start lowering prices sooner, not later. If the report shows a weaker result, this may lead to the benefit of the dollar dollar and achieve the negative aspect of the commodity price of goods from the US dollar.
Common Gold questions
Gold played a major role in human history, as it was widely used as a store for value and exchange. Currently, regardless of its brilliance and use of jewelry, the precious metal is widely seen as a safe asset, which means it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against currency decline because it does not depend on any specific source or government.
Central banks are the largest gold holders. In their goal to support their currencies at troubled times, central banks tend to diversify their reserves and buy gold to improve the powerful power and currency. High gold reserves can be a source of confidence to the dissolved country. Central banks added 1136 tons of gold worth $ 70 billion to their reserves in 2022, according to the data of the Golden Golden Council. This is the highest annual purchase since the start of the records. Central banks of emerging economies such as China, India and Turkey increase their gold reserves.
Gold has a counter -relationship with the US dollar and the United States Treasury, which is one of the main reserves and safe assets. When the dollar decreases, gold tends to rise, allowing investors and central banks to diversify their assets at turbulent times. Gold is inversely associated with the origins of the risk. The assembly in the stock market weakens the price of gold, while sales in the most dangerous markets tend to prefer precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of deep stagnation can escalate the price of gold due to its safe situation. As a lower asset than the return, gold tends to rise with low interest rates, while the high cost of money usually reaches the yellow metal. However, most moves depend on how the US dollar (USD) is behaved as the original is priced in dollars (Xau/USD). The strong dollar tends to maintain the price of gold -controlled gold, while the weakest dollar is likely to increase the price of gold.
