After Trump presented the trade agreement with the United Kingdom, the market is showing a shift towards more risky assets. Gold contracts are losing 1.8% today, falling to around $3,300 per ounce. Declines are also visible in 10-year U.S. bonds, whose yields are returning to around 4.37% (+8 basis points since the beginning of the session).
Investors are starting to ease their risk-off strategies, which have been pushing gold prices to new highs at a dynamic pace since the beginning of the year. This pace particularly increased amid growing concerns about international trade tensions following Trump's announcement of retaliatory tariffs. Today's announcement of the agreement with the United Kingdom is only the first step in straightening international relations, but it signals to investors a potential departure from the negative scenario of a trade war.
Gold contract prices are testing the psychological support level of $3,300. Dropping below this level may increase the risk of forming a double top pattern, which in classical technical analysis would signal a sell-off. Source: xStation
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