prices have slipped around 2.2% today to trade at $3176 at the time of writing. It appears safe-haven appeal is finally waning thanks to a combination of factors.
US-China Deal
The talks over the weekend between the global powers were one of the first dominos which have kept Gold prices under pressure. Today China’s Commerce Ministry announced a pause on the unreliable entity list for 17 US firms and halted export controls on 28 entities for 90 days starting May 14.
Just another step toward easing the tensions.
President Trumps Gulf Trip
US President Donald Trump is on a four-day investment drive to the Gulf states which so far has been impressive. Deals announced yesterday with Saudi Arabia include a $600 billion investment commitment in the US on top of arms sales to the Gulf state of around $142 billion.
This has been followed by today’s announcements that Qatar will be investing in the US and this started with a commitment to buying around 160 Boeing (NYSE:) jets. The White House confirmed: “Qatar plans to invest in the US over the next five years.”
These announcements, while not trade deals exactly, will still inject a wee bit of optimism into financial markets which will no doubt weigh on haven demand.
Trade Deal Announcements Move Closer
On the trade deal front, there was a post by a Fox Reporter on X:
“Trade-tariff deals with Japan and South Korea said to be “close,” according to Wall Street sources close to the White House. Timing unclear. India deals as well, though it has been throttled by the tensions with Pakistan.”
This would be another major step in the right direction on the trade deal front and will only add to Gold’s woes should it come to fruition.
Russia-Ukraine Conflict
As for the Russia Ukraine conflict, there has been growing chatter, at least from a Ukrainian perspective about an Istanbul meeting tomorrow.
For the third day in a row, the Kremlin hasn’t confirmed if Vladimir Putin will go to Istanbul on Thursday or who will represent Russia at the possible peace talks. Pressure is growing for Putin to meet with Volodymyr Zelenskyy.
Putin’s spokesperson, Dmitry Peskov, said they’ll announce the Russian delegation once Putin gives the go-ahead. “So far, no instructions have been given,” he said.
From the US, envoy Witkoff stated that he and Marco Rubio will go to Istanbul on Friday but he is unsure if Putin will attend. If any positive developments materialize from the proposed talks, this could further strengthen the retreat from havens and weigh on Gold prices.
Market Sentiment
Looking at overall client sentiment at OANDA and 73% of traders are net-long on Gold. I, however, hold a contrarian view of client sentiment. Given that 73% of traders are long on Gold there is a possibility the precious metal may continue to decline.
Technical Analysis – Gold (XAU/USD)
From a technical standpoint, Gold has broken through a key support area at 3200.
On the daily timeframe, Gold has broken below the period-14 RSI 50 level which hints at a change in momentum from bullish to bearish.
There is a key area around the 3170 handle which was the swing high the day following President Trumps universal tariff announcement on April 2.
A break off this level could lead to a test of support at 3150 and 3125 respectively.
A move higher from here needs to find support above the 3195-3200 area before resistance may be found at around the 3233 and 3245 areas respectively.
Gold (XAU/USD) Daily Chart, May 14, 2025
