Gold (XAUUSD) prices are hovering around 3,380 USD on Wednesday. Demand for safe-haven assets may weaken if tariff negotiations go well. Discover more in our analysis for 7 May 2025.
XAUUSD forecast: key trading points
- Gold (XAUUSD) halted its advance as markets await US-China trade talks
- The outcome of today’s Federal Reserve meeting may influence the trajectory of Gold (XAUUSD) prices
- XAUUSD forecast for 7 May 2025: 3,434
Fundamental analysis
Gold (XAUUSD) prices stabilised around 3,380 USD midweek, pausing their two-day rally amid anticipation of upcoming talks between US and Chinese officials. The news curbed demand for safe-haven assets. However, there is no certainty that the talks will take place, or if they do, that they will produce successful outcomes.
These negotiations represent a crucial step towards an agreement between Washington and Beijing to ease trade tensions. The situation escalated in April when Donald Trump raised tariffs on Chinese imports to 145% while slashing them for most US trading partners. In response, China imposed its high tariffs.
The market is now focused on the US Federal Reserve meeting, which will conclude tonight. Comments from Fed Chairman Jerome Powell may shed light on the future direction of interest rates.
Markets broadly expect the Federal Reserve to keep rates unchanged.
The outlook for Gold (XAUUSD) is favourable.
XAUUSD technical analysis
On the Gold (XAUUSD) H4 chart, conditions are in place for renewed bullish momentum, with the price aiming for 3,434 if it successfully rebounds from the 3,358 level.
Summary
Gold (XAUUSD) appears stable, although the market has paused its two-day rise to gather more data. The forecast for today, 7 May 2025, suggests renewed buying momentum targeting 3,434.
Source: Roboforex
