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.

Recommended Stories

Análisis del par GBP/USD. El 12 de agosto. Una inflación que ya no decide nada.

El par de divisas GBP/USD el lunes se movió de forma muy débil. Como ya dijimos, el trasfondo fundamental sigue siendo fuerte y resonante, pero los traders parecen haberse tomado

Paolo Greco 06:45 2025-08-12 UTC+2

Análisis del par EUR/USD. El 12 de agosto. Nunca había pasado, y ahora otra vez.

El par de divisas EUR/USD el lunes continuó negociándose de forma súper tranquila. El trasfondo macroeconómico estuvo ausente por segundo día de negociación consecutivo, y el trasfondo fundamental el mercado

Paolo Greco 06:45 2025-08-12 UTC+2

Análisis del par GBP/USD. Vista previa de la semana. Un paquete de estadísticas británicas que la libra no necesita.

El par de divisas GBP/USD continúa un sólido movimiento alcista después de una corrección de un mes. Para la corrección había fundamentos técnicos (el precio no puede moverse siempre

Paolo Greco 04:31 2025-08-11 UTC+2

Análisis del par EUR/USD. Vista previa de la semana. Al dólar le esperan nuevas pruebas.

El par de divisas EUR/USD muestra todos los signos de reanudación de la tendencia alcista, que debería llevar el nombre de Trump. La caída de la moneda estadounidense comenzó prácticamente

Paolo Greco 04:31 2025-08-11 UTC+2

WTI - West Texas Intermediate. Análisis de precios. Pronóstico. Trump amenaza a India y China con aranceles adicionales sobre la importación de petróleo ruso, lo que genera preocupaciones sobre la redirección de los suministros.

El petróleo West Texas Intermediate (WTI), que es el referente del crudo estadounidense, rebotó desde un mínimo de cinco semanas y subió por encima de los $63,50 en medio

Irina Yanina 04:25 2025-08-07 UTC+2

Análisis del par GBP/USD. El 7 de agosto. ¿Qué nos tiene preparado el Banco de Inglaterra?

El par de divisas GBP/USD el miércoles volvió a negociarse con bastante calma, pero la balanza poco a poco se inclina a favor de la libra (y también del euro)

Paolo Greco 04:25 2025-08-07 UTC+2

Análisis del par EUR/USD. El 7 de agosto. Trump inicia una nueva ronda de escalada en la guerra comercial.

El par de divisas EUR/USD durante la mayor parte del miércoles volvió a negociarse con una volatilidad muy baja. Esta semana hay realmente muy pocos eventos macroeconómicos, pero al mismo

Paolo Greco 04:25 2025-08-07 UTC+2

Análisis del par GBP/USD. El 6 de agosto. La libra espera el veredicto del Banco de Inglaterra.

El par de divisas GBP/USD se mantuvo prácticamente sin cambios durante la mayor parte del martes. En principio, no hay nada sorprendente en esto, ya que al menos

Paolo Greco 04:23 2025-08-06 UTC+2

Análisis del par EUR/USD. El 6 de agosto. La confianza en las instituciones de EE.UU. cae rápidamente.

El par de divisas EUR/USD durante el martes volvió a negociarse de forma bastante tranquila, como si la semana pasada no hubiera sucedido nada grave ni resonante. Pero

Paolo Greco 04:23 2025-08-06 UTC+2

Libra británica. Avance de la semana

La libra tendrá un contexto noticioso esta semana más interesante que el euro. La diferencia, en esencia, es solo una: esta semana el BoE será el último del "gran trío"

Chin Zhao 07:42 2025-08-04 UTC+2
¿No puede hablar ahora mismo?
Ingrese su pregunta en el 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.