GOLD falls sharply then recovers slightly from key confluenceOANDA:XAUUSD fell sharply and recovered slightly, as expectations of more such deals increased after US President Donald Trump announced a “groundbreaking” trade deal with the UK, undermining the metal’s appeal as a safe-haven asset.
The US and UK have reached a deal and markets are expecting more “tariff-free” avenues
Trump and UK Prime Minister Keir Starmer jointly announce the signing of a trade deal
• The UK will reduce tariffs on US goods from 5.1% to 1.8%;
• The US will maintain a uniform tariff of 10% on UK imports;
• The UK will further ease market access for US goods.
The US and China will continue high-level talks this Saturday
US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet with top Chinese economic officials in Switzerland on Saturday to discuss the outlook for trade relations.
Gold prices have hit record highs in recent months, largely due to global tensions caused by Trump's tariff policies.
China's central bank allows banks to buy foreign currency to import gold, signaling potential support
The People's Bank of China has approved commercial banks to buy foreign currency in the latest quota to pay for gold imports, supporting the possibility of increased physical gold demand in the market in the future.
With the implementation of the US-UK agreement, the recovery of risk appetite in the market and the approaching US-China negotiations, the safe-haven demand for gold has temporarily eased, and technical downward pressure has also emerged.
In addition, traders need to pay special attention to geopolitical developments with the focus on Russia - Ukraine when Ukraine has taken actions despite Russia's warnings on May 9.
Any escalation of the conflict will immediately support gold's sudden price increase.
Analysis of OANDA:XAUUSD technical outlook
On the daily chart, after a sharp decline from the weekly target of $3,430, gold's decline has paused and recovered slightly from the 0.382% Fibonacci retracement level. The area around $3,292 is also an important support area as it is a confluence of important technical support factors, with the appearance of EMA21 (major support), the lower edge of the price channel which is the short-term trend price channel and the 0.382% Fibonacci retracement level.
As long as gold remains above $3,292, it still has a bullish outlook in the short term, and in case gold falls below this level, it will likely test technical support at $3,267 in the short term, more than $3,245.
For the day, with the current position, gold still has a bullish outlook, and the notable points will be listed as follows.
Support: $3,300 – $3,292 – $3,267
Resistance: $3,351 – $3,371
SELL XAUUSD PRICE 3334 - 3332⚡️
↠↠ Stop Loss 3338
→Take Profit 1 3326
↨
→Take Profit 2 3320
BUY XAUUSD PRICE 3259 - 3261⚡️
↠↠ Stop Loss 3255
→Take Profit 1 3267
↨
→Take Profit 2 3273
