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Gold prices slipped on Friday, poised to end the week in the red.
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China denies any active trade negotiations with the U.S., contradicting Trump's statements.
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Investors seem to be betting on the deal rumors, lifting stock markets and pulling back from Gold.
Gold (XAU/USD) continues to retreat this Friday, currently hovering around $3,300 and on track to close the week in negative territory. The decline reflects growing uncertainty surrounding the state of U.S.-China trade relations. While U.S. President Donald Trump has suggested that negotiations are underway, China has publicly denied that any talks are taking place, leaving markets struggling to interpret the true status of the conflict.
Earlier in the day, Bloomberg reported that China is considering exempting some U.S. goods from tariffs as rising costs strain the domestic economy. This headline sparked volatility across global markets. Simultaneously, Bloomberg noted that China is preparing emergency economic measures, including new financial and policy tools, to cushion the economy against external shocks.
Market Movers: Trump’s Latest Trade Claims
- As Friday unfolded, Trump made further headlines during European trading hours, stating that over 200 trade deals have been made and that Chinese President Xi Jinping has been in contact with him. These unverified remarks stirred risk appetite, leading to gains in equities and weighing on safe-haven assets like Gold.
- Elsewhere, central banks made notable headlines. The Swiss National Bank (SNB) reported a first-quarter profit of 6.7 billion Swiss Francs (CHF), largely driven by gains in its Gold holdings. Meanwhile, Kenya’s central bank is reportedly exploring the possibility of adding Gold to its reserves to reduce reliance on the U.S. dollar, according to Bloomberg.
- Gold’s rapid rise this year has also triggered a surge in retail interest in China, leading to record trading volumes on the Shanghai exchange. Reuters reports that the frenzy has prompted regulatory warnings amid growing concerns over speculative behavior.
- U.S. Treasury Secretary Scott Bessent added to the flurry of trade-related news by suggesting that the U.S. and South Korea could soon reach a preliminary trade agreement. These headlines, hinting at improving global trade conditions, have added further pressure on Gold.
Technical Analysis: Gold Rally Cools Amid Shaky Fundamentals
Gold’s explosive rally appears to be losing steam as profit-taking sets in and optimism around global trade weighs on demand for safe havens. Traders seem to be pricing in the possibility of an imminent U.S.-China trade deal, despite China's firm denial of any ongoing negotiations. The key risk now lies in the market potentially misreading diplomatic language—mistaking political posturing for progress—while an actual deal may still be far off. In such a case, a rebound back toward $3,500 could be in the cards.
From a technical perspective, the daily Pivot Point at $3,335 marks the first major level that bulls would need to reclaim to regain momentum. An early test of resistance at $3,381 (R1) was attempted at the open but failed to hold. A break above this level could open the door toward R2 resistance at $3,414, with the $3,400 psychological handle in focus.
On the downside, Gold briefly dipped below the S1 support at $3,302 before recovering above it. If bearish pressure resumes, the next support lies at S2 near $3,256, followed by a critical floor around $3,245—the April 11 high and a key technical inflection point.
In summary, while Gold’s long-term bullish case remains intact, short-term sentiment appears vulnerable to trade rhetoric and shifting macro headlines. Traders should remain cautious amid headline-driven volatility.
