Gold prices rise on technical rebound, but gains may be limited by risk-on sentiment.

Gold prices rose in early Asian trading, driven by a possible technical recovery after a 2.5% decline in front-month Comex futures overnight. However, gains may be limited by a risk-on mood, fueled by renewed optimism over trade talks and the possibility of lowered US tariffs on Chinese imports. Spot gold was up 0.3% at $3,315.41/oz.

Gold prices experienced a significant rebound in early Asian trading, climbing by 0.3% to $3,315.41 per ounce. This recovery can be attributed to a possible technical upturn following a 2.5% decline in front-month Comex futures overnight. However, the gains may be limited by a risk-on market sentiment, which is bolstered by renewed optimism over trade talks and the potential for reduced US tariffs on Chinese imports.

US President Donald Trump has dismissed the possibility of lowering the 145% tariffs on Chinese goods to facilitate trade negotiations. Despite this, China has reiterated its willingness to engage in dialogue, and US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will meet with Chinese officials in Switzerland this week. This renewed optimism has contributed to a positive market sentiment, potentially limiting gold's price gains [2].

Technical analysis also suggests that gold is attempting to recover from recent declines. Analysts at Economies.com predict that gold's price may stabilize below $3,400, with positive signals emerging on the Relative Strength Index (RSI), indicating a potential bullish trend [3].

Barrick Gold (GOLD), one of the world's largest gold mining companies, is expected to report strong first-quarter earnings, with analysts predicting an EPS of $0.30, a 58% increase from last year. Revenue is projected to reach $3.13 billion, representing a 14% rise. Despite geopolitical risks in Mali, the promising Reko Diq project offers future growth potential. Analysts have set an average target price of $24.86 for Barrick Gold, with a potential upside of 30.66% from the current price of $19.03 [1].

In conclusion, gold prices have shown resilience, driven by technical recovery and market optimism over trade negotiations. While the potential for reduced tariffs may limit gold's price gains, the metal remains supported by strong fundamentals and technical indicators.

References:
[1] https://www.gurufocus.com/news/2833551/barrick-golds-gold-q1-profits-boosted-by-high-gold-prices-amid-mali-challenges
[2] https://www.aa.com.tr/en/americas/trump-says-no-to-reducing-tariffs-on-chinese-imports/3560456
[3] https://www.economies.com/commodities/gold-analysis