XAUUSD is moving in a descending channel, and the market has reached the lower high area of the channel
#XAUUSD Analysis Video
Gold prices have been going through a bit of a rollercoaster lately. After dipping earlier this week, they found some footing—and the reason behind it? A softer US dollar.
Here’s what happened: The latest US inflation numbers came in lower than expected. That was a relief for many who feared price hikes driven by tariffs. Since inflation didn’t spike as predicted, investors felt confident enough to move away from ultra-safe assets and take more risks in the stock market.
This shift in behavior also brought fresh hope for interest rate cuts from the Federal Reserve later this year. Lower interest rates usually make gold more attractive, as it doesn’t yield interest on its own. When rates go down, gold becomes a safer and more appealing alternative for investors.
So, while gold did take a slight dip, it wasn’t all doom and gloom. Thanks to the weaker dollar and easing inflation worries, the metal managed to steady itself and avoid a deeper drop.
Big Political Moves Are Shaping Investor Sentiment
Trade Deals Could Reshape the Investment Landscape
Politics always plays a big role in the gold market, and right now, trade agreements and peace talks are at the center of it all.
President Donald Trump recently made headlines by securing a massive $600 billion in trade deals during a visit to Saudi Arabia. Moves like this often lead investors to shift funds away from traditional safe-haven assets like gold, especially if they think global growth is about to get a boost.
If more trade deals are announced, we could see some investors looking to put their money into assets tied to growth and productivity—pulling capital away from gold in the process.
Eyes on Peace Talks Between Ukraine and Russia
In another part of the world, there’s growing attention on possible peace talks between Ukraine’s President Zelenskyy and Russia’s Vladimir Putin. The meeting might take place in Istanbul, although nothing’s confirmed yet. Both the US and Europe are pushing for it, and if it happens, it could help calm some of the global tensions.
However, if those talks fall through, new sanctions could be introduced, which would likely stir up more uncertainty—and that’s where gold could shine again. Investors usually run to gold when things start looking shaky on the global stage.
India’s Gold Demand Is Slowing—but That’s Not the Whole Story
India is one of the largest gold consumers in the world, so when demand shifts there, the entire market feels it. Recently, India’s trade deficit narrowed, and a big reason was a drop in gold imports.
Gold prices had surged earlier, which led many buyers in India to hold off on purchases. When prices rise too quickly, everyday buyers tend to step back, and that’s exactly what happened. As a result, India’s overall trade deficit improved—from $21.5 billion in March to around $18.9 billion in April.
XAUUSD is moving in a descending Triangle
But that’s not the only factor at play. A drop in crude oil prices also contributed, reducing India’s import bill. Together, lower gold and oil imports helped bring the trade numbers into a more comfortable zone.
Still, this doesn’t mean the gold story is fading in India. Demand often picks back up when prices stabilize, especially during wedding seasons and festivals, which are deeply tied to gold in Indian culture.
High-Net-Worth Investors Still Trust Gold
While everyday buyers might pause during price spikes, wealthy investors are still leaning into gold. Amy Lo, the head of UBS Wealth Management in Asia, recently pointed out that rich clients are gradually moving away from US-dollar investments. Instead, they’re exploring other options—gold, cryptocurrencies, and even China-based assets.
Why this shift? Well, the global financial environment is full of uncertainties. Inflation, potential rate cuts, and global political issues make it hard to predict what’s coming next. In such times, gold becomes a trusted way to preserve wealth.
As Amy Lo put it, “Gold is getting very popular.” It’s not just about quick profits—it’s about safety, diversification, and preparing for whatever the global markets might throw next.
Final Summary: Gold Isn’t Done Yet—It’s Just Adapting
Gold has been through a lot recently, from shifting inflation numbers to major geopolitical changes and trade headlines. And while it isn’t soaring right now, it’s still holding strong in the background.
A weaker dollar and softer inflation readings gave it a lifeline, while political developments around trade and global diplomacy continue to create a back-and-forth scenario for investors. In India, we’re seeing a pause in buying due to high prices, but long-term demand remains deeply rooted in cultural and economic habits.
Meanwhile, the rich aren’t turning their backs on gold. They’re still adding it to their portfolios as a way to stay protected in uncertain times.
So, if you’re wondering whether gold is out of the game, the answer is no. It’s just playing a quieter, more strategic role, waiting for its moment to shine again.
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