Gold price traded downwards in the New York session on Friday, losing 2.1% of its value and going at $3,275 at the spot market at the type of writing. The commodity has caved in under pressure from declining risk aversion as trade tariff tensions between the United States and China thaw.
News outlets reported widely on Friday that China was considering exempting certain US goods from its 125% trade tariffs. In addition, the world’s second-largest economy is reportedly exploring a détente on tariffs with the European Union. That could potentially expand the global market and add downward pressure on gold price.
Earlier in the week, US President Donald Trump had stated that China-US trade talks could get significant traction in the next two to three weeks. That set in motion the calming down of the high stakes risk aversion that had dominated the markets in recent weeks.
Meanwhile, Alphabet’s forecast-beating earnings has injected a positive momentum in the markets that could increase affinity towards equities, reducing the demand for safe haven gold. The tech giant reported revenues of $90.23 billion, beating the consensus forecast figure of $89.17 billion for the quarter ending March 2025.
In addition, EPS came in at $2.81, exceeding analysts forecast figure of $2.01. Furthermore, it announced a $70 billion share buyback, affirming good times for the AI industry despite recent market troubles. That sentiment will likely permeate into the broader equities markets.
Gold Price Prediction
Gold price pivots at $3,297 and the momentum signals control by the sellers. It will likely find the first support at $3,277. An extended downward momentum will break below that level and could take the lower to test $3,252.
Conversely, going above $3,297 will shift the momentum to the upside. If that happens, XAUUSD will likely rise to encounter the first barrier at $3,316. Breaking above that level will invalidate the downside narrative. Also, such momentum could extend the downside to test $3,340.
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