XAUUSD Technical Analysis


Investors have stayed away from risk assets after the US slapped tariffs on $50bn worth imports from China, raising the stakes in a growing trade showdown with Beijing. How is the yellow metal impacted by this? Stay updated with this 4 April XAUUSD Technical Analysis.

4 April, GKFX – Gold (XAU/USD) is trading comatose around $1,334 in Asia but may find bids during the day ahead as S&P 500 index futures indicate the stocks are likely to open on a negative note, courtesy of escalating US-China trade tensions.

Escalating trade tensions weigh over risk assets

On Tuesday, the Trump administration revealed plans for a 25 percent tariff on 1,333 Chinese products ranging from industrial robots to locomotives. The total value of the goods subject to the tariffs is approximately $50 billion.

Meanwhile, China immediately vowed to retaliate, boosting fears of full-blown US-China trade war. Consequently, the S&P 500 futures are reporting a 0.30 percent drop. So, the yellow metal could gain altitude on safe-haven appeal. Also, US ISM non-manufacturing release and the resulting action in the dollar index (DXY) could influence the yellow metal.

4 April XAUUSD Technical Analysis

A break above $1,338 (10-day moving average) would open up upside towards $1,345 (April 2 high) and $1,352.4 (Jan. 29 high). On the downside, breach of support at $1,331.53 (session low) could yield a pullback to $1,329 (50-day moving average) and $1,321.25 (March 29 low).

Disclaimer

This article 4 April XAUUSD Technical Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

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