Gold Daily | Spot Gold Prices Decline Amid US-UK Trade Hopes and Geopolitical Uncertainty

【Latest Gold Price and Recent Trends】

Spot gold prices fell to $3321.62 per ounce, reversing earlier gains due to the anticipated US-UK trade agreement announcement by President Trump. This news has increased market risk appetite, exerting pressure on gold as investors await the outcome of upcoming US-China trade talks. Previously, gold hit a record high of $3500.05 on April 22.

【Technical Analysis】

Gold regained some ground and rose to around $3407 per ounce due to dip-buying, supported by geopolitical risks including the US-China trade stance, the Russia-Ukraine conflict, and tensions between India and Pakistan. On the daily chart, gold rallied back above $3400, with a potential bullish breakout if prices exceed the $3434-$3435 area. Strong short-term support lies at $3365-$3360 and further at $3328-$3327. If prices drop below $3300, it could lead to a technical sell-off towards support at $3265-$3260.

【Market Sentiment and Economic Background】

Market sentiment improved with expectations of a US-UK trade agreement, which put pressure on gold as a safe-haven asset. The Federal Reserve maintained interest rates, citing increased risks of inflation and unemployment. Fed Chair Powell emphasized an appropriate policy stance, indicating readiness to act swiftly if needed, but current tariffs could hinder the Fed's goals. Additionally, geopolitical tensions, such as the Indio-Pakistani conflict, contribute to the mixed backdrop affecting gold prices.

【Analyst Opinions】

Analysts suggest that easing trade tensions, like a US-UK agreement, could negatively impact gold, though global geopolitical risks continue to support it. Fed's rate decisions and geopolitical developments will be crucial in determining gold's trajectory. While gold faces short-term pressure, opportunities for upward movement remain, emphasizing the need for buyers to reclaim the $3400 level for a bullish outlook.