The previous yellow metal dropped sharply on Wednesday, retreating from record highs as US President Donald Trump’s remarks lifted market sentiment.
Trump suggested that tariffs on Chinese imports would be “substantially” reduced, fuelling optimism in risk assets.
At the same time, he backtracked on his criticism of the Federal Reserve, clarifying he had “no intention” of firing Fed Chair Powell while maintaining his calls for immediate rate cuts.
This sentiment shift contributed to a sell-off in havens like gold, while a modest rebound in the US Dollar added further pressure.
The US Dollar Index (DXY), recovering from a three-year low of 97.70, was trading around 99.40, dampening gold’s appeal.
With the markets focused on trade developments and monetary policy, the path forward for spot gold remains uncertain, hinging on the evolving geopolitical landscape and investor risk appetite.
Spot gold’s RSI is technically mixed, while the MACD continues to support the upward trend.
After hitting the $3,500 target, pullbacks could offer entry points for traders if safe-haven demand persists.
Demand is expected to return from $3,331-33 – reassess from this region is contested.
Daily Chart Spot Gold
This content is provided by Australian Financial Services Corporation (AFSC) Pty Ltd (AFSC), trading as Crystal Ball Finance. AFSC is a corporate authorised representative (CAR No. 001275455) of ShareX Pty Ltd (AFSL No. 519872).
For information relating to our financial services, you should refer to our Financial Services Guide.
