empty
07.05.2025 09:14 AM
Gold Returns to Growth

Gold has resumed its upward movement as investors analyzed trade-related comments from U.S. Treasury Secretary Scott Bessent while awaiting the Federal Reserve's decision on interest rates.

Bessent recently stated that several attractive offers were made to the United States during negotiations with trade partners, reiterating that some deals might be announced as soon as this week. However, no specific details followed, causing investors and traders to question the credibility of these developments. While the U.S. Treasury Secretary mentioned the possibility of a significant reduction in tariffs on U.S. goods, he also clarified that no major concessions would be made for trade partners.

This image is no longer relevant

This position slightly softens the rhetoric regarding the domestic market but dampens hopes for a quick recovery of global trade relations and the resolution of ongoing conflicts. In the context of growing economic instability caused by the pandemic and geopolitical factors, protectionist measures—even in a milder form—are likely to worsen the situation. Restricting access to the U.S. market, even with some tariff reductions, will pressure partner economies, forcing them to seek alternative development paths and strengthen their domestic markets. In the long term, such an approach could lead to the fragmentation of the global economy, a decline in international trade volumes, and slower economic growth.

Nevertheless, according to Bessent, the latest GDP data do not suggest an impending recession. He emphasized the resilience of consumer spending, which remains the key driver of economic growth. However, recent U.S. trade balance figures tell a different story. A sharp 14% month-over-month increase in imports indicates a slowdown in economic growth, which will likely continue in the near term.

Bessent also noted the importance of closely monitoring the global economic situation. Geopolitical tensions, supply chain disruptions, and the energy crisis in Europe could negatively affect U.S. economic growth. Therefore, although the current indicators appear encouraging, vigilance is necessary to remain prepared for potential challenges.

This image is no longer relevant

As for gold prices, they rebounded due to fears that trade tensions may further slow the global economy. Added to this is the Federal Reserve, which is expected to maintain a wait-and-see approach today to assess how the trade policies implemented last month impact the economy before making any changes to U.S. interest rates. The Fed is expected to keep rates unchanged at this meeting, despite repeated criticism from President Trump toward Fed Chair Jerome Powell for not cutting rates.

From a technical standpoint, buyers need to overcome the nearest resistance at $3400 to aim for $3421, above which it will be challenging to gain a foothold. The most distant target stands at the $3450 area. Bears will attempt to regain control of $3369 in case of a decline. If they succeed, a breakout of this range would deal a serious blow to the bulls and push gold toward a low of $3341, with the prospect of reaching $3313.

Jakub Novak,
Analytical expert of InstaTrade
© 2007-2025

Recommended Stories

GBP/USD Overview – June 11. What Will Inflation Influence?

The GBP/USD currency pair fell sharply in the first half of Tuesday but retraced back to its original position in the second half. Traders may have assumed in the morning

Paolo Greco 03:31 2025-06-11 UTC+2

EUR/USD Overview – June 11: Even News About Negotiations Doesn't Help the Dollar

The EUR/USD currency pair continued trading sluggishly on Tuesday, maintaining an upward bias. The macroeconomic backdrop has been absent for two days in a row, but there have been some

Paolo Greco 03:31 2025-06-11 UTC+2

Japan Hopes for a Positive Outcome in Trade Negotiations—Otherwise, Recession and Rising Inflation Loom

The revised estimate of Japan's Q1 GDP showed that the economy contracted less than previously estimated, with consumption figures also revised upward. GDP declined by 0.2% year-over-year instead

Kuvat Raharjo 00:21 2025-06-11 UTC+2

GBP/USD: Labor Market Cools Down, But the Pound Holds Its Ground

The UK labor market data published on Tuesday turned out to be unfavorable for the pound. However, the GBP/USD pair is not rushing to dive downward, as the overall weakness

Irina Manzenko 00:21 2025-06-11 UTC+2

The Dollar Is Doomed, Though It Doesn't Know It Yet

In war, all methods are justified. U.S.–China trade negotiations are ongoing in London, and everything is being utilized—from education to rocket engines. Washington is prepared to make concessions, including lifting

Marek Petkovich 00:21 2025-06-11 UTC+2

The Dollar Stabilized, but It Won't Last Long

The latest CFTC report indicates that the sell-off of the U.S. dollar has either ended or is close to ending. The net short position against major currencies decreased by $1.094

Kuvat Raharjo 18:45 2025-06-10 UTC+2

No News Is Already Good News

Trade negotiations between the United States and China are set to continue for a second day, as both sides aim to ease tensions surrounding technology exports and rare earth elements

Jakub Novak 11:19 2025-06-10 UTC+2

EUR/USD. Analysis and Forecast

Today, the EUR/USD pair is under pressure, having failed to consolidate above the 1.1435 level and showing intraday declines toward the psychological level of 1.1400 and below, amid U.S. dollar

Irina Yanina 10:45 2025-06-10 UTC+2

Markets Hope for a Breakthrough in U.S.-China Trade Talks (Gold and GBP/USD May Continue Declining)

Markets have virtually come to a standstill in anticipation of the outcome of the trade negotiations between representatives of China and the United States. So far, there have been

Pati Gani 10:44 2025-06-10 UTC+2

The ECB Is Ready to Wait

The euro and the pound remain within a range against the U.S. dollar, experiencing some pressure following the first day of negotiations between China and the U.S. However, in addition

Jakub Novak 10:27 2025-06-10 UTC+2
Can't speak right now?
Ask your question in the chat.
 

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 InstaTrade anyway.

We are sorry for any inconvenience caused by this message.