Daily Price Outlook
During early European trading session, the Gold price (XAU/USD) continued to slide lower, trading around $3,270 level.
However, this bearish bias follows recent developments suggesting progress in trade negotiations between the United States and several Asian countries, which reduced safe-haven demand for Gold.
Gold Price Pressured by Trade Deal Progress and Tariff Negotiation Hopes
However, the decline in Gold prices was triggered after US Treasury Secretary Scott Bessent’s television interview on Sunday, where he highlighted that multiple trade deals with key Asian partners were progressing well.
Bessent emphasized that while China remains a unique case, deals with other Asian nations are moving along strongly.
Adding to the positive trade sentiment, US Agriculture Secretary Brooke Rollins mentioned ongoing daily conversations with China over tariffs, suggesting that easing measures could soon be realized. This optimism weighed on Gold, which typically benefits from trade uncertainty.
Although, the declines in the Gold could be limited as the Chinese Foreign Ministry clarified on Monday that there had been no recent phone call between President Xi Jinping and President Trump.
They also noted that no negotiations or consultations on tariffs had occurred, injecting a degree of caution back into markets and slowing Gold’s decline.
Focus on US Nonfarm Payrolls: Impact on Fed’s Decisions and Gold Prices
Moving ahead, traders will focus on Friday’s US Nonfarm Payrolls (NFP) report for April to gauge the strength of the job market.
This is important as it could impact the Federal Reserve’s next move at the May 7 meeting. Recent US data, including a drop in Durable Goods Orders and lower consumer confidence, hints that the economy may be slowing down.
Hence, the strong or weak jobs report could change expectations about interest rate hikes, which in turn would affect Gold prices. When rates rise, Gold becomes less appealing because it doesn’t earn interest like other investments.
Gold Prices Impacted by Australian News and Weak Demand from China
Another factor that has been impacting gold price is the news from Australia. Toubani Resources, a gold mining company listed on the ASX, announced a $160 million debt package through a joint venture.
This boosted investor confidence in the gold sector. Meanwhile, Thailand’s bond market is seeing its strongest monthly inflows in over three years, helped by a stronger baht and hopes for interest rate cuts — trends that were partly supported by earlier rises in gold prices.
However, gold prices stayed under pressure because of weak demand in China. In the first quarter of 2025, China's gold consumption dropped by 5.96% compared to last year, according to the China Gold Association.
Jewelry demand fell sharply by almost 27% due to high prices. Although gold bar and coin purchases jumped nearly 30%, it wasn’t enough to balance the overall decline in demand.
GOLD (XAU/USD) – Technical Analysis
Gold prices continue to consolidate within a defined descending triangle, a bearish continuation pattern, while maintaining higher low formations near $3,268. A descending trendline caps upside momentum, with sellers firmly defending the $3,331 zone.
Recent candlestick action has produced multiple spinning tops and a bearish engulfing near resistance — a sign of prevailing indecision giving way to downside pressure.
The RSI is hovering at 46.66, recovering modestly from oversold territory but still below the midline, indicating weak bullish momentum.
Notably, there is no significant bullish divergence, suggesting buyers lack strong conviction. Price remains compressed below the 50-EMA ($3,316), which is sloping downward — a bearish signal.
The broader structure still favors sellers unless $3,331 is decisively broken. Failure to break above the triangle resistance could invite renewed pressure toward $3,268, and if breached, $3,233 support may come into play. A break above $3,331 would negate the bearish setup and expose $3,371 as the next major resistance.
The market also shows hints of a broader bear flag developing on higher timeframes, raising the stakes for upcoming sessions.
Traders should monitor for Doji or shooting star confirmations near resistance to validate short entries, while three white soldiers around $3,268 could signal a trend reversal.
Related News
- EUR/USD Price Analysis – April 28, 2025
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