As trade prospects evaporate, gold falls below $3,300, US Dollar holds steady.

Gold loses gains amid lower US Treasury rates and weaker DXY.

Trump’s unwillingness to eliminate China tariffs sans concessions depresses markets.
Traders anticipate GDP, ISM, and Nonfarm Payrolls this week.
Gold price reversed Thursday’s gains and fell below $3,300 as the Dollars remained strong and Gold failed to profit on decreasing US Treasury rates. The precious metal fell over 1.60% to $3,294 as the US-China trade battle deescalated.

US President Donald Trump’s remarks keep markets unsettled. Bloomberg reported that China wants to exclude certain US items from tariffs. The news made traders happy, but later Trump said, “I will not lift China tariffs if they give us something.”

The Greenback gained 0.23% at 99.51 despite the US Dollar Index (DXY) falling as sentiment soured. This keeps Gold from rebounding, and traders were taken off surprise after recording gains before the weekend.

The University of Miami (UoM) recorded the fourth-lowest US consumer sentiment score since the late 1970s in April.

Next week, traders will watch the March US JOLTS data, Q1 2025 GDP, ISM Mfg PMI, and April Nonfarm Payrolls.

Prime Market Terminal predicts a 92% possibility of the Fed not lowering rates at the forthcoming meeting. However, traders predict the fed funds rate to conclude the year at 3.45%, 86 basis points lower.

Daily digest: Gold falls as dollar recovers
The US a ten- Treasury note rate declined five basis points to 4.266%.
The 10-year Treasury Inflation-Protected Bonds rates fell four and a half bps to 1.968%.
Michigan Consumer Sentiment dropped from 57 to 52 in April. Consumers’ one-year inflation forecasts climbed from 5% to 6.5% and five-year from 4.1% to 4.4%.
On Thursday, Ohio Fed President Beth Hammack said the Fed might move in June if evidence supports it but that uncertainty is affecting business planning.
XAU/USD technical outlook: Bullish but testing $3,200.
Due to purchasers’ reluctance to push prices beyond $3,400, gold falls below $3,300 despite its advance. Buyer momentum is diminishing, according to the RSI. This allows sellers to decrease XAU/USD.

Support begins at $3,250. A break of the latter will reveal the April 3 top of $3,167 and the 50-day moving average at $3,041.

If buyers recapture $3,300, the March 22 peak of $3,386 would prohibit sellers from driving prices below. The next resistance level is $3,400, then $3,450, and $3,500.