From Investing.com: 2025-04-07 04:18:00

Gold prices dropped sharply by 2.42% due to a wider market meltdown caused by escalating trade tensions between the US and China. The market saw a second day of decline as China imposed 34% tariffs on all US goods in response to US tariffs, leading to fears of a global recession. Despite fluctuations, gold rose by 15.3% this year, driven by central bank purchases and its status as a safe-haven asset. XAU/USD fell but started to recover, moving above the 25-day moving average. Investors should monitor trade developments involving major players like the US, China, India, and the EU.

The euro lost 0.86% against the USD as the US nonfarm payroll report showed an increase of 228,000 jobs, prompting concerns about the eurozone’s economy. Investors are worried about the impact of US tariffs on European goods and predict a 92% chance of the ECB cutting rates. EUR/USD rose during Asian and early European trading sessions, but traders should watch for news on trade tariffs and negotiations. Key levels to monitor are resistance at 1.10510 and support at 1.09540.

The Australian dollar plummeted by more than 4.5% against the USD, hitting a five-year low after China announced additional tariffs on US goods. The retaliation intensified global recession fears and caused a sharp decline in AUD/USD. Australian Treasurer Jim Chalmers expects economic growth to suffer from the trade war, with investors pricing in a 20% chance of an RBA rate cut in May. Traders should monitor trade tariff news and possible negotiations involving major players like the US, China, India, and the EU. Key levels for AUD/USD are resistance at 0.60610 and support at 0.59300.



Read more at Investing.com: Gold Falls Sharply Amid Intensifying Trade War and Recession Fears