Gold Daily | Gold Prices Drop 1.4% Amid Strengthening Dollar and Easing U.S.-China Trade Tensions

【Latest Gold Price and Recent Trends】

Gold prices fell by over 1% as news emerged of China considering tariff exemptions on some U.S. products. As of the latest update, spot gold is down 1.4% at $3,302.81 per ounce. This decline is influenced by a stronger U.S. dollar, making gold more expensive for overseas buyers, thereby limiting demand. Recent positive developments in U.S.-China trade tensions also exerted downward pressure on gold.

【Technical Analysis】

On the daily chart, gold prices are trending slowly downward as the market digests stagflation risks, with potential entry points for buyers identified around the previous high of $3,167. For short-sellers, attention is on whether prices can break below this level, targeting the main trendline near $3,100. On a 4-hour chart, gold is testing support at $3,284, with buyers setting clear stop-losses and short-sellers hoping for a break below this critical support. The 1-hour chart reveals bullish targets at $3,367 and bearish focus on whether $3,285 support holds.

【Market Sentiment and Economic Background】

The market is adjusting to positive signals in trade tensions between the U.S. and China. Reports indicate China may exempt some U.S. imports from tariffs, seen as a sign of easing tensions, which weakens the appeal of gold as a safe haven. This shift comes amid U.S. President Trump's optimistic remarks about ongoing trade negotiations, countering previous claims of stalled talks. The dollar's recent strengthening also contributes to gold's price decline.

【Analyst Opinions】

Analysts suggest that while structural bullish factors for gold remain, such as emerging markets adjusting foreign reserves, positive news on tariffs could lead to further short-term price declines. The Federal Reserve's cautious stance on interest rate changes, coupled with global trade developments, suggests a continued demand for gold as a hedge against instability. Despite recent volatility, long-term fundamentals support the potential for gold prices to maintain an upward trend.