XAUUSD fell to a two-week low on Thursday (May 1), mainly due to signs of easing trade tensions and a long holiday in China, the world's largest gold consumer. Investors will be looking ahead to the US non-farm payrolls report due today (Friday), which is expected to cause major market movements. Easing trade tensions between the US and other countries have kept investors optimistic throughout the week. In addition, easing US-China trade tensions have also added to the pressure on gold as there are no additional risks to stimulate safe-haven demand.
US President Donald Trump has decided to exempt some tariffs on the auto industry and made progress on deals with India, South Korea and Japan. On Wednesday local time, Trump said there was a great chance of reaching a trade deal with China and that there were "potential" trade deals with India, South Korea and Japan, and that he was working to reach agreements with the three countries.
The Trump administration hopes to reach preliminary trade agreements with several trading partners within weeks, U.S. Trade Representative Greer said Wednesday. U.S. Commerce Secretary Mattis Lutnick said at least one trade deal is close to being announced, several others are close to being finalized, and Trump may be waiting for an opportunity to announce them all at once.
Data released on Wednesday showed the US economy contracted in the first quarter and the personal consumption expenditures (PCE) price index was flat in March, turning investors' attention to the non-farm payrolls report due out today (Friday). The US non-farm payrolls report for April will be released on May 2 (8:30 a.m. ET). Expectations for the non-farm report are that traders and economists expect the report to show 133,000 new jobs in the US, average hourly earnings increased 0.3% month-on-month (up 3.9% year-on-year), and the U3 unemployment rate remained unchanged at 4.2%.
Fed policymakers said they would keep interest rates on hold until there are clear signs that inflation is falling toward the 2% target or there is a possibility that the job market is deteriorating.
Technical Outlook Analysis
XAUUSD Technically, gold remains in the best position for bullish expectations with support from the EMA21 and the 0.50% Fibonacci retracement. Meanwhile, the Relative Strength Index (RSI) is also reacting to the 50 level, which is considered the closest support in terms of momentum.
In the short term, if gold returns to trade above $3,270, it will be considered the best condition for a bullish recovery to end the broad-based correction.
However, if gold is sold below $3,228 and maintains its price action below this level, it will likely continue to decline with a subsequent target of around $3,163 in the short term.
In the day, considering the current position, gold still has conditions for a bullish outlook technically and the notable price levels will be listed as follows.
Support: $3,228 – $3,163
Resistance: $3,267 – $3,270
SELL XAUUSD PRICE 3270 - 3268⚡️
↠↠ Stop Loss 3275
→Take Profit 1 3262
↨
→Take Profit 2 3256
BUY XAUUSD PRICE 3174 - 3176⚡️
↠↠ Stop Loss 3170
→Take Profit 1 3182
↨
→Take Profit 2 3188
Trade active
Plan SELL HIT TP1 +80pips. Heading to TP2 😵😵😵Trade closed: target reached
Plan SELL Hit Full TP2 + 130pips🤕🤕🤕. Congratulations everyoneNote
![GOLD MARKET ANALYSIS AND COMMENTARY - [May 05 - May 09]](https://s3.tradingview.com/m/mUz8r4t2_mid.png)
Note
The possibility of gold rising to $5,000 would increase expectations for Bitcoin, with historical trends suggesting BTC price will rise to $155,000 or higher if conditions are right.Note
China increased its gold reserves for the sixth consecutive month in April, highlighting its strategic move to increase its accumulation of the precious metal amid record gold prices and ongoing trade tensions.
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🔰| 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.