Gold struggles to regain momentum on Trump's softer stance on US-China trade war

Gold prices marginally cooled off from the Asian session's high of $3367 but are holding well above $3300 mark. The decline in prices was attributed to U.S. President Trump's remark on Wednesday that signaled a softer stance on the ongoing US-China trade war. He stated that the current 145% tariffs on Chinese imports will be reduced “substantially” once a deal is reached. “It will come down substantially, but it won’t be zero,” he said from the Oval Office.
The statement aligns with Treasury Secretary Scott Bessent’s earlier comments, suggesting de-escalation could begin in the “very near future" but it would have to be mutual, laying emphasis on the fact that USA won't unilaterally cut the duties levied on Chinese goods.

XAU/USD TECHNICAL OVERVIEW 

Technical Structure: The daily chart of Gold showcases breakdown of the Shooting Star candlestick formed earlier, solidifying the possibility of a trend reversal while a strong bounce back from the 55-SMA on 4-hour timeframe suggests the moving average emerges as a crucial dynamic support. Formation of a Bearish Flag on 15-Minute timeframe signals at further selling pressure. 

Intraday Strategy/ Intraday Trend: The intraday sentiment favours the strategy of Buying on Supports and Selling on Resistance as the trend remains Rangebound to Bearish.

Weekly Trend: Strong Bullish

Major Resistance: 3338, 3350, 3367

Major Support: 3320, 3310, 3291