Today’s Gold Analysis Overview:
- General trend for gold: Downward correction in its early stages.
- Support levels for gold today: $2970 - $2948 per ounce.
- Resistance levels for gold today: $3000 - $3056 per ounce.
- Today's gold recommendation: Buy gold below the support level of $2950.
Daily Gold Technical Analysis XAU/USD
Gold bulls' attempts to stabilize above the psychological resistance of $3000 per ounce still lack the momentum to continue ahead of the announcement of US inflation figures and the reaction to the release of the minutes of the last meeting of the US Federal Reserve. According to gold trading company platforms, the spot gold price index is stable around the $2980 per ounce level at the time of writing this analysis. According to trading activity, for four consecutive trading sessions, spot gold prices have been subject to profit-taking sell-offs from their all-time highs when prices moved towards the resistance level of $3167 per ounce before the markets reacted to the US administration's imposition of harsh tariffs that disturbed the financial markets without exception and significantly affected investor sentiment.
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Why Did Gold Fail to Rise Again?
According to recent gold price movements, gold prices have reduced their gains as the rise in US Treasury bond yields has reduced the attractiveness of non-yielding assets such as gold. Concerns about a trade war have escalated after a White House official confirmed that the United States will proceed with imposing tariffs of up to 104% on Chinese imports, which are scheduled to take effect at midnight. Earlier in the session, markets rose thanks to optimism about potential progress in tariff negotiations.
For his part, US Treasury Secretary Bisent stated that more than 70 countries have contacted the White House, with the possibility of some promising trade deals being presented. However, safe-haven demand and expectations of lower interest rates continue to provide fundamental support for gold.
Dollar Declines as Trade War Tensions Escalate
According to Forex currency market trading and factors affecting the direction of gold, the US Dollar Index, which measures the performance of the US currency against a basket of other major currencies, fell to 102.8, as escalating concerns about a trade war affected investor sentiment. This decline followed statements from a White House official who confirmed that the United States will proceed with imposing tariffs of up to 104% on Chinese imports, which are scheduled to take effect from yesterday.
Earlier in the session, financial markets rallied on optimism about progress in tariff negotiations. US Treasury Secretary Bill Clinton indicated that more than 70 countries had contacted the White House, with the potential for several promising trade agreements. US President Trump reinforced this optimistic tone, posting on the Truth Social website that he had a "great call" with the acting president of South Korea, and that China "very much wants to make a deal."
According to trading, the US dollar fell more than 1% against both the Japanese yen and the Swiss franc, as investors fled to safe-haven assets amid growing uncertainty.
Trading Tips:
We still advise buying gold at every lower level, with support at $2950, and levels below that being the most suitable buying opportunities.
Forecast for Future Gold Bullion Prices
Please consider that, according to today's gold analysts' expectations, global geopolitical trade tensions, central bank purchases of gold bullion, and the performance of the US currency will remain the most prominent factors influencing the gold market in the coming period. The buying strategy will remain the strongest as the factors influencing the market persist. The return of confidence among gold bulls requires a return to the vicinity of the resistance levels of $3000, $3065, and $3100 per ounce, respectively.
Generally, global commodity and stock markets declined sharply after US President Donald Trump imposed strict tariffs on imports from nearly all US trading partners on April 2, sparking a global trade war. China, the European Union, Canada, and other countries imposed retaliatory tariffs on US imports. However, markets calmed down yesterday.
Meanwhile, the gold sell-off came as investors sought to increase liquidity and profit from the metal's record price. However, the possibility that trade wars could lead to an economic recession and higher inflation could support gold as a store of value.
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