Gold prices are currently facing downward pressure as a temporary easing of trade tensions between the U.S. and China boosts global equities, thereby reducing the demand for safe-haven assets. Technical traders are closely monitoring the support zone, with the 50-day moving average acting as a critical level. A break below this support could trigger a selloff.
Over the past weekend, the U.S. and China agreed to a 90-day suspension of tariffs during talks in Geneva. The White House also announced a reduction in the de minimus threshold for low-value shipments from China. Ole Hansen from Saxo Bank noted that this tariff truce has spurred a rally in stock markets, diminishing gold's safe-haven appeal.
Easing inflation data has increased expectations of Federal Reserve rate cuts, with markets anticipating potential cuts. Lower interest rates typically benefit gold. However, improved risk appetite is currently overshadowing this effect. Near-term gold prices forecast remains bearish, traders should monitor incoming inflation data and Federal Reserve commentary closely for direction.