Gold prices are falling today mainly due to easing global trade tensions and a shift in investor sentiment away from safe-haven assets like gold towards riskier investments like stocks. Recent events such as the delay of US tariffs on European goods and positive signals from US-China trade talks have reduced fears of an impending trade war. This has lowered demand for gold as a safe-haven asset.
Furthermore, the US dollar has shown signs of strengthening. Since gold is priced in dollars, a stronger dollar makes gold more expensive for holders of other currencies, which reduces international demand and puts pressure on prices.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Gold’s bullish momentum is fading, although the long-term uptrend has not yet been broken. From a technical perspective, the 50-day exponential moving average (blue line on the chart) remains an important support, having halted price declines twice on April 7 and May 15. The technical resistance point is the peak from the May 23 session and the double peak in the area of historical maxima.
Source: xStation
