Gold prices increase in the midst of food task and commercial uncertainty

Gold rises higher after decline

Gold () fell by 1.95% on Wednesday after the (FED) maintained the fund rate at 4.25-4.5% for a third consecutive meeting.

The feeling of the market became cautious after the president of the United States declared that it would not reduce 145% of tariffs on Chinese products to advance commercial conversations. This comment threw doubts about the possible progress at an upcoming meeting between US and Chinese officials in Switzerland. As a result, the lack of optimism on a commercial agreement strengthened the state of gold as a safe asset.

At the same time, the Federal Reserve’s decision to maintain its reference interest rate without changes in the pressure down over the gold, which does not offer performance. The Fed also expressed increasing concerns about increasing inflation and unemployment, maintaining a cautious position on future monetary policy. The president of the FED, Jerome Powell, emphasized that the Central Bank is not considering a preventive rate cut in response to any economic consequence of ongoing tariff tensions, further influencing investors’ expectations.

Xau/USD rose during Asian and early European commercial sessions. Today, the Bank of England () will announce its base rate at 11:00 am UTC, which can trigger market volatility. In addition, the US unemployment claims report will leave at 12:30 pm UTC. The lower figures than expected could stop the rally in Xau/USD, although any setback is likely to be short. On the contrary, the highest numbers than expected can push Xau/USD higher around $ 3,083.

Euro weakens after the decision of the Fed interest rate

On Wednesday, the euro () fell widely by 0.59%, after the Federal Reserve left interest rates without changes, in line with market expectations.

“They were a bit more customs than many in the market expected, and they really did not change or water any of the opinions about inflation above the average or that the job market is sold at a low level,” said Marvin Loh, senior strategist of the global market in State Street. “I still think we are in an extended retention period until the data indicates that they need to do something and/or get much more commercial clarity,” Loh added.

The (USD) remains stable against the euro today. The currency clings to its profits after its greatest increase in two weeks after the Fed comments about the growing economic risks of increasing inflation and unemployment. The expectation of facilitating commercial tensions between Washington and Beijing further supports backback. Investors await the US meeting on Saturday on commercial rates in Switzerland, hoping that countries progress in the regulation of commercial relations.

EUR/USD remained above the important 50 -day mobile average. Today, the Bank of England (BOE) will announce its interest rate decision at 11:00 AM UTC. The announcement can add some volatility to EUR pairs. In addition, the US report at 12:30 PM UTC can cause volatility in all USD pairs. The key levels to observe EUR/USD are supporting 1,12700 and resistance to 1,13800.

GBP remains close to its maximum of three years

0.6% fell on Wednesday, continuing to consolidate before the Bank of England (BOE) meeting.

It is widely anticipated that the BOE decreases interest rates in 25 basic points (BP) to 4.25% on Thursday, marking its fourth cut of consecutive rates. Monetary flexibility is anticipated due to the growing concerns about the slowdown in economic growth due to the commercial tariffs of US President Donald Trump. Investors will analyze the meeting, the first since the tariffs were introduced, for any change in the tone or economic projections of the bank. In addition, the United Kingdom inflation decreased more than expected in March, falling from 2.8% to 2.6%, which supports the case for rate reduction.

“We have a slightly more cautious opinion,” said Shaan Raithatha, a senior economist at Vanguard. “Although we recognize that the inflation perspective is softening, there are some short -term risks,” he added, before mentioning the improvement of growth prospects, the highest public services prices and the attempt evidence that the increase in contributions of the national insurance and a national life salary “begin to feed until the final prices.”

GBP/USD increased during the Asian and early European commercial sessions. The BOE will announce its tariff decision today at 11:00 am UTC. Merchants must also monitor the summary of the monetary policy and the votes of the monetary policy committee. The regulator can deliver a call ‘aggressive cut’, which means that they will reduce the rate but will project less rate reductions in the future. In this case, GBP/USD can recover slightly. On the contrary, if the BOE sounds explicitly, the stop will probably fall for 1,32500.