Gold prices edged higher after posting their biggest one-day gain in four weeks, as a weakening dollar and trade and geopolitical risks stoked safe-haven demand.
Gold prices soared by 2.8% on Monday, approaching $3,390 per ounce, amid deteriorating relations between Washington and Beijing and the intensification of the Russia-Ukraine conflict. China accused the US of breaching a recently reached trade deal and vowed to take measures to safeguard its own interests, despite the White House later confirming that Chinese leaders might deliver a speech this week.
Meanwhile, the EU has once again issued a warning that if President Trump follows through on his tariff threats, the EU will take countermeasures.
As the negotiations show almost no sign of breakthrough, the latest development has dampened optimism about the US reaching agreements with its two major trading partners. The dollar has dropped to its lowest level since 2023, reflecting growing concerns over Trump’s policies and their economic impact.
All of this highlights the safe-haven appeal of gold. Since hitting a record high above $3,500 per ounce in April, gold’s safe-haven appeal has been waning. However, so far this year, gold has still risen by more than a quarter. Goldman Sachs said last week that gold will continue to serve as an inflation hedge in long-term investment portfolios, just like oil.
In terms of geopolitics, Russia and Ukraine concluded the second round of negotiations in Istanbul, but the two sides failed to get closer to the process of ending the war. Meanwhile, US President Donald Trump said that the United States would not allow uranium enrichment to be part of any agreement reached with Iran, while Tehran is striving to ensure that any agreement will include the lifting of sanctions.
Oil prices rose for a second consecutive day as a weakening dollar increased the appeal of dollar-denominated commodities and geopolitical unrest limited the possibility of increased supply from Russia and Iran.
Technical analysis:
Gold: Before the holiday, our plugin clearly indicated on gold that we should attempt to buy at least once near 3280. Currently, the green zone near 3280 has performed exceptionally well. After a brief dip, the price has strongly rebounded by nearly 100 dollars. For today, we are waiting to observe the price’s pullback near 3350 to confirm whether it is a new demand zone or a liquidity sweep signal. We suggest paying attention to both possibilities. For detailed positions, please consult the plugin.
(Gold 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and note “666” in the message.
Nasdaq: We were hoping for a pullback after the price rebounded before the holiday, but the conditions were not triggered and the price did not rise above 21,543. You can continue to monitor it intraday or shift the area slightly upwards to observe the liquidity sweep before shorting. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and note “666” in the message.
Crude oil: Is the price movement exactly as we predicted before the holiday? First it rose, then fell, and then started to rally? Within the day, we suggest paying attention to the signal of momentum breakthrough, and closely monitor the performance near 63.50. Both breakthrough and pullback confirmation after breakthrough can be attempted. For detailed positions, please consult the plugin.
(Crude Oil 15-Minute Chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the picture, please contact V: Hana-fgfg and note “666” in the message.
Today’s key economic data and events to focus on:
17:00 Unemployment Rate in Eurozone for April
17:00 Eurozone May consumer price index flash estimate (year-on-year)
22:00 U.S. April JOLTS Job Openings (in ten thousands)
22:00 US April Durable Goods Orders Revised (MoM)
