DBG Markets: Market Report for May 26, 2025

MARKET ANALYSIS

GOLDGOLD prices find appreciation, reaching the upper boundary of the consolidation zone. However, we can see that there is a greater chance for prices to buy further. The MACD and the RSI are seeing increased bullish volume with the rise of bullish momentum. Overall price action is still very bullish. Thus, we look for more bullish opportunities.

Fundamentally, we have some mixed readings. President Donald Trump agreed to delay the planned 50% tariff on European goods. Trump on Sunday set a July 9 deadline to buy time for negotiations with the bloc, backing away from his earlier threat to impose the tariff on June 1. However, trade concerns remain as Trump on Friday also warned Apple Inc. that it would be subject to 25% tariffs if it does not manufacture its iPhones in the US. Last week, bullion gained nearly 5%, supported by trade uncertainty and mounting concerns over the US economic and fiscal outlook. Trumps new tax bill, which recently approved by the House and now headed to the Senate for a vote expected by August, is projected to widen the US budget deficit by nearly $3 trillion over the next decade. These factors increase risk of trading the Dollar and will push GOLD prices higher as the Dollar becomes cheaper.

SILVERSILVER prices are currently finding a rise in market bullish movement with the RSI and the MACD seeing buying momentum and volume. This healthy uptrend is expected to continue in the coming days. The clear bounce off the EMA200 gives more chances that prices will break above 33.5028 and continue bullish. Thus, we will look for more buying opportunities this week.

DXYThe Dollar gets weaker. As we discussed earlier, Trump delays EU tariffs. This gave a rise to the Euro, pushing dollar prices down. Trump also threatened to impose a 25% tariff on iPhones sold in the US that are not manufactured domestically, raising concerns over broader trade tensions. There are also fiscal concerns revolving around the markets as Trumps sweeping spending and tax cut proposals had an indication of a possible undergoing of a “significant” revision in the Senate. Technically, further selling is also expected as the MACD and the RSI find increased selling volume and momentum. Overall price action also follows through with further selling as we previously read. Thus, we remain looking for more selling opportunities.

GBPUSDThe Pound rises significantly after Trump announces more time for the EU deal, contributing to the overall weakness of the dollar. We can see the MACD and the RSI find increased bullish volume and momentum. This healthy uptrend is expected to continue in the coming days.

AUDUSDThe Aussie dollar has broken out of the consolidation zone and is currently seeing an increased rate to go beyond 0.65250, with the MACD and the RSI reporting increased bullish momentum and volume. Australia will release monthly CPI data on Wednesday and retail sales on Friday. These updates have gained more importance after the central bank opened the door to further policy easing last week. A rate cut in July is now priced at a 65% probability, with a total easing of 75 basis points expected by early next year. However, for now, we will continue to look for more bullish opportunities.

NZDUSDThe Kiwi is currently finding an increased bullish movement with the RSI and the MACD finding increased buying momentum and volume. The Reserve Bank of New Zealand will meet on Wednesday, where it is widely expected to cut interest rates to 3.25%, though uncertainty remains about its next moves.

EURUSDThe Euro successfully breaks out of the consolidation boundaries and finds increased bullish movement. The MACD and the RSI follow through with this bias and find increased chances for a buying continuation. We remain looking for more buying, especially now when a European-US trade deal is about to actualize with talks making progress.

USDJPYJapan is finding increased appreciation of shares on stocks after Trump announced a delay on tariffs on Europe. This delay caused more investors to have a higher risk appetite, increasing trade and shares in Asian markets.

“The market is now becoming more and more doubtful about (the) seriousness of the tariff policy, particularly after (Trump) dropped the tariff rates on China,” said Nomura chief macro strategist Naka Matsuzawa.

USDCHFFranc prices find appreciation as they break the low as we expected after failing to reach the EMA200. There are more chances for prices to find selling continuation with the MACD and the RSI seeing increased selling momentum and volume.

USDCADCAD prices find more strength after Trumps rescinding from the tariff threats. This lowers his credibility and increases the risk appetite of traders. Thus, we can see the market find further strength going into the Canadian dollar. The MACD and the RSI find increased volume and momentum selling. We will continue to look for more selling in the coming days.