Asia Mid-Session Bell: US stock indices futures extended gains while Gold (XAU/USD) recent losses found support at the 20-day MA

In today’s Asian session, US stock index futures reversed early losses. The S&P 500 and Nasdaq 100 E-mini futures initially fell 0.4% and 0.3% following cautious outlooks from Apple and Amazon despite upbeat Q1 earnings. However, both rebounded to post intraday gains of 0.6% and 0.3%, respectively, after China’s Commerce Ministry announced it is evaluating the possibility of trade talks with the US.

The Hong Kong stock market re-opened today after its Labour Day break on a jovial mood, where the Hang Seng Index rallied by 1.6% to hit nearly a one-month high on the backdrop of easing US-China trade tensions.

Separately, Japan concluded its second round of trade talks with the US. Economy Minister Akazawa declined to comment on specifics, including China or exchange rates, and noted the next meeting is planned for after mid-May. The Nikkei 225 added 1.1% in early trade and is poised for a seventh straight session of gains.

The US dollar rebounded, led by a sharp decline in the Japanese yen after the Bank of Japan held rates steady but slashed its fiscal year growth forecast to 0.5% from 1.1%, citing trade tariff uncertainty. The yen tumbled 1.6% to 145.40 per dollar on 1 May, its steepest drop this year. USD/JPY extended gains slightly today, rising to an intraday high of 145.93 in the Asian early session, with the 50-day moving average acting as an intermediate resistance at around 147.05.

Gold (XAU/USD) fell for a third straight session, shedding 1.5% to a near two-week low of $3,201 as easing US-China tensions dampened safe haven demand. However, it has since rebounded 0.5% in early Asian trading to $3,254, following a retest of its 20-day moving average, as markets await key US jobs data due later today.

The 8% decline seen in the price actions of Gold (XAU/USD) since its current all-time high of US$3,500 printed on 22 April 2025 has reached its 20-day moving average.

In addition, the downside momentum of the last three sessions has started to show signs of easing as indicated by the hourly RSI momentum indicator, where it has flashed out a bullish divergence condition at its oversold region in yesterday’s 1 May European session coupled with a bullish breakout above its 50 level in today’s first half of the Asian session.

Watch the US$3,194/3,162 key short-term pivotal support, and a clearance above the US$3,315 near-term resistance may see the next intermediate resistances coming in at US$3,370 and US$3,420 in the first step.

However, failure to hold above at US$3,162 invalidates the short-term recovery scenario for a potential multi-week corrective decline sequence to unfold that may expose the next intermediate support at US$3,086/3,055 (also the 50-day moving average).