As Powell's warnings about the impact of the trade war increased market volatility, US stocks and the US dollar fell sharply and gold prices hit new highs.
Powell warned that the central bank may have less flexibility to quickly mitigate the economic impact of President Donald Trump's trade war, comments that sent stocks lower on Wednesday. Powell reiterated that the Fed is in no rush to cut interest rates and that it would be "better to wait until the situation becomes clearer before considering any adjustments to the policy stance." He also acknowledged that the Fed could face a difficult situation where its two policy goals of price stability and maximum employment conflict, as Trump's tariffs could push up U.S. inflation and slow economic growth.
XAUUSD have risen nearly $700/ounce, or nearly 28%, this year, driven by tariff disputes, expectations of interest rate cuts and strong central bank buying, outpacing the 27% gain in 2024.
Gold prices have continued to rise as the escalating trade war raises concerns of a global recession. At the same time, the Trump administration is preparing to pressure other countries to limit trade with China in response to US tariffs in US-China trade talks.
U.S. President Donald Trump on Tuesday ordered an investigation into possible tariffs on all critical minerals imported into the United States, marking a new escalation in his dispute with global trading partners and an effort to pressure China. The latest escalation in tensions between the world’s two largest economies has hurt sentiment in financial markets overall, sending investors fleeing to safe-haven assets like gold.
However, a profit-taking or positive developments in US-China trade relations could trigger a sell-off. Therefore, readers/traders need to closely monitor developments surrounding the trade war to make timely changes in their trading plans to suit the market context.
Technical Outlook AnalysisXAUUSD
On the daily chart, gold continues to find and renew all-time highs with an absolutely supported uptrend in both the short, medium and long term. In the long term, the price channel will be set as the main trend with the main support from EMA21, while in the short term, gold is still in an uptrend with support from the 0.382% Fibonacci extension levels and the raw price point of 3,300USD right after.
In terms of momentum, the Relative Strength Index (RSI) is entering the overbought zone, a downward RSI below 80 would be considered a signal for a possible correction. Going forward, the trend and outlook for gold prices remain bullish, and declines should only be considered short-term corrections.
But this note will be important, in a market where assets (Gold) are overbought, making them a bubble, any correction will cause serious selling sentiment. As in the current context, we cannot know when the US-China war will cool down, and any positive move around this war will cause selling sentiment in the gold market, which is considered a traditional safe haven asset.
During the day, the bullish outlook for gold prices will be listed again by the following positions.
Support: 3,303 – 3,300 USD
Resistance: 3,337 – 3,371 USD
SELL XAUUSD PRICE 3396 - 3394⚡️
↠↠ Stop Loss 3400
→Take Profit 1 3388
↨
→Take Profit 2 3382
BUY XAUUSD PRICE 3309 - 3311⚡️
↠↠ Stop Loss 3305
→Take Profit 1 3317
↨
→Take Profit 2 3323
Powell warned that the central bank may have less flexibility to quickly mitigate the economic impact of President Donald Trump's trade war, comments that sent stocks lower on Wednesday. Powell reiterated that the Fed is in no rush to cut interest rates and that it would be "better to wait until the situation becomes clearer before considering any adjustments to the policy stance." He also acknowledged that the Fed could face a difficult situation where its two policy goals of price stability and maximum employment conflict, as Trump's tariffs could push up U.S. inflation and slow economic growth.
XAUUSD have risen nearly $700/ounce, or nearly 28%, this year, driven by tariff disputes, expectations of interest rate cuts and strong central bank buying, outpacing the 27% gain in 2024. Gold prices have continued to rise as the escalating trade war raises concerns of a global recession. At the same time, the Trump administration is preparing to pressure other countries to limit trade with China in response to US tariffs in US-China trade talks.
U.S. President Donald Trump on Tuesday ordered an investigation into possible tariffs on all critical minerals imported into the United States, marking a new escalation in his dispute with global trading partners and an effort to pressure China. The latest escalation in tensions between the world’s two largest economies has hurt sentiment in financial markets overall, sending investors fleeing to safe-haven assets like gold.
However, a profit-taking or positive developments in US-China trade relations could trigger a sell-off. Therefore, readers/traders need to closely monitor developments surrounding the trade war to make timely changes in their trading plans to suit the market context.
Technical Outlook Analysis
XAUUSD On the daily chart, gold continues to find and renew all-time highs with an absolutely supported uptrend in both the short, medium and long term. In the long term, the price channel will be set as the main trend with the main support from EMA21, while in the short term, gold is still in an uptrend with support from the 0.382% Fibonacci extension levels and the raw price point of 3,300USD right after.
In terms of momentum, the Relative Strength Index (RSI) is entering the overbought zone, a downward RSI below 80 would be considered a signal for a possible correction. Going forward, the trend and outlook for gold prices remain bullish, and declines should only be considered short-term corrections.
But this note will be important, in a market where assets (Gold) are overbought, making them a bubble, any correction will cause serious selling sentiment. As in the current context, we cannot know when the US-China war will cool down, and any positive move around this war will cause selling sentiment in the gold market, which is considered a traditional safe haven asset.
During the day, the bullish outlook for gold prices will be listed again by the following positions.
Support: 3,303 – 3,300 USD
Resistance: 3,337 – 3,371 USD
SELL XAUUSD PRICE 3396 - 3394⚡️
↠↠ Stop Loss 3400
→Take Profit 1 3388
↨
→Take Profit 2 3382
BUY XAUUSD PRICE 3309 - 3311⚡️
↠↠ Stop Loss 3305
→Take Profit 1 3317
↨
→Take Profit 2 3323
Note
🔴SPOT gold fell below $3,320 an ounce, down 0.66% on the day.Trade active
Plan BUY +45pips close a part move SL to entry.🔥Note
![GOLD MARKET ANALYSIS AND COMMENTARY - [April 21 - April 25]](https://s3.tradingview.com/7/7GAfyzLf_mid.png)
Note
🔴Spot Gold Hits New HighGOLD SPOT continued to extend early Asian trading, surpassing previous highs and refreshing an all-time high of $3,359.38 per ounce, accumulating around $30 on the day, extending gains by 0.9%.
Note
🔴Gold Breaks Through $3,430, Pulls Up Over $100 On The DaySpot gold broke through the $3,430 per ounce price level and extended its record high, pulling up over $100 internally and accumulating nearly 10% this month.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🔰| Forex trading
🧩Get an average of 1200 pips per month
🧩Consulting on Risk Management
🧩Account management
🧩Forex signals have a high win rate
🚨🚨🚨FREE SIGNALS: t.me/+8q3AxDD9CsRjYzI1
🧩Get an average of 1200 pips per month
🧩Consulting on Risk Management
🧩Account management
🧩Forex signals have a high win rate
🚨🚨🚨FREE SIGNALS: t.me/+8q3AxDD9CsRjYzI1
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.