empty
07.04.2025 06:52 PM
XAU/USD. Analysis and Forecast

This image is no longer relevant

At the moment, gold has halted its corrective decline from the all-time high reached last week.

The recent plunge in global financial markets, triggered by the mutual tariffs initiated by U.S. President Donald Trump, is providing support to the safe-haven metal. Trump imposed tariffs of at least 10% on all imported goods, with China being hit especially hard by 54% duties. In response, China's Ministry of Commerce announced additional tariffs of 34% on all imports from the U.S. U.S. Commerce Secretary Howard Lutnick confirmed that the tariffs will not be postponed and will remain in effect in the coming days and weeks. Trump also stated that there would be no deal with China unless the trade deficit is resolved.

In addition, it was reported today that the People's Bank of China has increased its official gold reserves for the fifth consecutive month, which is also supporting investor interest in gold bullion.

The ongoing risk-off sentiment and expectations that the U.S. economic slowdown—triggered by the tariffs—could prompt the Federal Reserve to resume its rate-cutting cycle earlier than anticipated, are contributing to a decline in U.S. Treasury yields. This, in turn, is weakening the dollar, which has been unable to recover from its multi-month lows.

This image is no longer relevant

Persisting geopolitical risks are also increasing the appeal of gold. However, traders continue to liquidate their long positions to cover losses elsewhere, which in turn is capping gold's price growth and calls for some caution.

From a technical standpoint, the sharp decline in gold from its all-time high has stalled near the $2957 level, which previously served as a breakout point. The subsequent upward move has been capped at resistance near $3057, which has now become a key level—its breakout would pave the way toward the $3080 level, on the path back to the record high.

On the other hand, the psychological level of $3000 is acting as the first line of defense against an immediate drop, ahead of the $2980–2967 level or the low of the current correction. If this level is breached, the short-term bias will shift in favor of the bears, potentially triggering a deeper decline toward the 50-day simple moving average (SMA) and beyond.

It is also worth noting that the RSI (Relative Strength Index) is losing momentum.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In June we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST

Recommended Stories

USD/CAD. Analysis and Forecast

The USD/CAD pair is showing a modest recovery from levels below 1.3600, retracing most of the previous day's losses, supported by a rebound in the U.S. dollar. In addition, concerns

Irina Yanina 13:09 2025-06-13 UTC+2

AUD/JPY. Analysis and Forecast

The AUD/JPY pair has been under selling pressure for the third consecutive day, reaching an almost two-week low around 92.30 during Friday's Asian session. After a sharp drop, spot prices

Irina Yanina 12:53 2025-06-13 UTC+2

Israeli Missile Strike on Iran Will Crash Global Markets (I Expect Bitcoin and #NDX to Resume Their Decline After a Local Upward Correction)

As I anticipated, the lack of a broad positive outcome in negotiations between China and the U.S. and renewed inflationary pressure led to a sharp decline in demand for corporate

Pati Gani 10:10 2025-06-13 UTC+2

Greed Will Do the Market No Good

The less you know, the better you sleep. Encouraged by a 21% rally in the S&P 500 from its April lows, the crowd continues to buy the dip—completely unbothered

Marek Petkovich 09:35 2025-06-13 UTC+2

What to Pay Attention to on June 13? A Breakdown of Fundamental Events for Beginners

Several macroeconomic reports are scheduled for Friday, but we doubt that the data will significantly impact traders today—especially today. As a reminder, Donald Trump intends to raise tariffs

Paolo Greco 07:16 2025-06-13 UTC+2

GBP/USD Overview – June 13: The Court Won't Stop Donald Trump!

The GBP/USD currency pair continued its upward movement on Thursday and nearly updated its three-year high. For most of the day, quotes hovered around the 1.36 level

Paolo Greco 03:41 2025-06-13 UTC+2

EUR/USD Overview – June 13: America's Economy Gets Lucky

The EUR/USD currency pair continued its strong upward movement throughout Thursday. Is anyone still puzzled as to why the U.S. dollar keeps falling? From our point of view, the reasons

Paolo Greco 03:41 2025-06-13 UTC+2

Trump Sends Out "Letters of Happiness"

It has been less than two weeks since Donald Trump raised import tariffs on steel and aluminum for all countries except the UK. While negotiations with the UK were deemed

Chin Zhao 00:21 2025-06-13 UTC+2

GBP/USD. A Weak Pound Stronger Than a Weak Greenback

Following weak UK labor market data, equally soft figures on British economic growth were released on Thursday. Almost all components of the report came out in the "red zone," increasing

Irina Manzenko 00:20 2025-06-13 UTC+2

The Dollar Flees the Battlefield

The old becomes new again. The word "recession" again trended in the Forex and other financial markets. May's U.S. Consumer Price Index (CPI) fell short of Bloomberg analysts' forecasts. Following

Marek Petkovich 00:20 2025-06-13 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.