Today’s Gold Analysis Overview:
- General Trend: Neutral
- Today's Gold Support Points: $2988 – $2955
- Today's Gold Resistance Points: $3025 – $3060
- Today's Gold Recommendation: Buy at every downward level without risk.
Daily Gold Technical Analysis XAU/USD
For three consecutive trading sessions, spot gold prices have been undergoing a downward correction, with losses extending to the $2956 per ounce support level, near the free trading recommendations to buy gold from the $2950 support level. The gold price index is now recovering upwards around the $3015 per ounce level at the time of writing.
Reasons for the Decline in the Gold Price Despite Market Concern
According to recent trading and across gold trading company platforms, losses in gold bullion prices increased as investors sold their holdings to cover margin calls and take profits amidst broader market turmoil. This decline followed a wave of headlines related to US President Trump's tariff policies, which shook market sentiment. While US administration officials appeared to have calmed markets, assuring that tariffs would not negatively impact the economy, analysts warned of slowing growth and rising inflation. Adding to tensions was Trump's threat to impose 50% tariffs on China unless it reversed its retaliatory 34% tariffs on American goods.
Markets were also shaken by rumours of a possible 90-day suspension of the tariffs, which the White House quickly denied, leading to sharp volatility in stock markets recently.
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US Dollar Rise Halts Gold's Rally
According to Forex market trading, the US Dollar Index rose slightly to 103, recovering somewhat after falling 1.4% last week, as uncertainty about tariffs and concerns about US growth worsened. Trump's tariff announcements had erased nearly $6 trillion from US markets. When asked about the repercussions, Trump said, "Sometimes we need medicine" and denied deliberately triggering a sell-off.
Trading Tips:
We still recommend buying gold at every downward level, but without risk, and activating take-profit and stop-loss orders, while monitoring factors affecting the gold market to seize the best trading opportunities.
Meanwhile, over 50 countries have contacted the White House to begin trade talks. On Friday, China decided to retaliate by imposing a 34% tariff on all US imports, and other major economies are expected to follow suit. On the monetary policy front, traders now anticipate more US interest rate cuts by the Federal Reserve, with financial markets estimating a 55% probability of a cut in May and more than 100 basis points of easing by the end of the year. Just last week, investors expected interest rates to remain unchanged. However, Federal Reserve Chairman Powell warned that it was too early to determine the appropriate policy response.
Overall, the decline in gold prices comes just days after reaching a record high, thanks to demand for it as a safe haven amid growing geopolitical risks. Although gold usually benefits from periods of turmoil – and is still up 15% this year – it can be sold during severe market disruptions as investors seek to cover losses in other markets.
Upcoming Gold Price Forecasts:
According to today's gold analysts' forecasts, technically, the stability of the gold price around and above the psychological resistance of $3000 per ounce supports the upward technical outlook and suggests an upcoming upward movement. Technical buying will increase, and therefore, the next resistance levels may be $3030 and $3065, which in turn will move the bulls again to the $3100 peak, confirming the readiness for new record bullish breakouts. Currently, we see the most suitable buying levels as $2955 and $2920 per ounce.
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