Tariff Relief Sparks Rally

*Mixed Asset Reactions Reflect Cautious Optimism

Market Summary

Market reactions were mixed, reflecting cautious optimism. While equities and other high-risk assets soared on the back of easing tariff pressure, gold also saw renewed inflows. Many portfolio managers, who had previously liquidated gold positions to meet margin calls during the recent downturn, are now reallocating as volatility shows signs of easing. The simultaneous strength in both risk and safe-haven assets suggests that while investors are regaining confidence, uncertainty around global trade dynamics continues to weigh on broader market sentiment.

Current rate hike bets on 7th May Fed interest rate decision: Source: CME Fedwatch Tool

0 bps (85%) VS -25 bps (15%)

Market Movements

DOLLAR_INDX, H4

The Dollar Index is trading lower following the prior retracement from the resistance level. MACD has illustrated diminishing bullish momentum, while RSI is at 48, suggesting the index might extend its losses since the RSI stays below the midline.

Resistance level: 103.15, 103.80

Support level: 102.45, 102.00

XAU/USD, H4

Gold prices are trading higher while currently testing the resistance level. MACD has illustrated increasing bullish momentum. However, RSI is at 72, suggesting the commodity might enter overbought territory.

Resistance level: 3130.00, 3170.00

Support level: 3090.00, 3045.00

HK50，H4

HK50 is trading lower following the prior retracement from the resistance level. However, MACD has illustrated diminishing bearish momentum, while RSI is at 34, suggesting the index might enter oversold territory.

Resistance level: 21180.00, 22640.00

Support level: 18855.00, 17150.00