Gold Price News: Gold Edges Lower in More Subdued Trading

Gold prices were marginally lower on Tuesday, in more stable conditions as the market took stock of what appeared to be a de-escalation of the US-led trade war that has rattled the financial markets in recent weeks.

Prices moved in a range of $3,300 to $3,342 an ounce on Tuesday, compared with a wider range of $3,272 to $3,353 an ounce on Monday.

Sideways trading at $3,300

Gold prices have lacked direction since hitting a fresh all-time high of just over $3,500 an ounce on April 22. Since pulling back slightly from that peak, gold has seen largely sideways trading, moving a few dollars either side of $3,300 an ounce for the last five trading sessions.

For the moment, gold’s rally has stalled amid signs that US President Donald Trump may be forced to rethink recent trade tariffs or face economic consequences that could diminish his political support.

That said, gold’s reluctance to move much lower can be taken as a sign that the financial markets are still on edge amid uncertainty over US trade policies and their ultimate impact on the wider global economy. These uncertainties have weighed on higher-risk assets such as equities while supporting safe havens like gold.

Technical analysis

Turning to the technical charts, gold prices have shown some stability at just below ascending oblique minor resistance at $3,371 an ounce as of Tuesday, while trading some way above the 20-day moving average at $3,223 an ounce. Should prices come under downward pressure, attention will focus on ascending oblique minor support at $3,170 an ounce. The 10-day Relative Strength Index gives a broadly neutral reading of 61 – on the high side, but some way short of overbought territory.

Upcoming data

Looking ahead, Wednesday will bring Q1 GDP growth figures for both the Euro Area and the US, which will be closely watched as the markets assess the health of major economies and the implications for upcoming interest rate changes. Adding to this picture will be the US core PCE price index for March.