Gold Eases as Risk Sentiment Improves, but Long-Term Demand Inta

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Macro theme:
- Gold prices retreated from recent highs as improved risk sentiment following the US-China trade deal and a stronger US dollar weighed on safe-haven demand.
- Gold ETFs recorded modest outflows in Apr, but the withdrawal slowdown suggests easing profit-taking pressure.
- In the near term, trade optimism may keep gold under pressure, though central bank demand and portfolio diversification continue to support the long-term outlook.

Technical theme:
- XAUUSD pulled back from the swing high near 3430, forming a lower high and moving into a sideways structure between EMAs.
- A close below 3230 could trigger further downside toward 3135,
- On the contrary, holding above 3230 may prompt a retest of the 3430 level.


Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness

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