In 2025, gold experienced an unprecedented surge, marking its best quarterly performance in history with gains exceeding 17% in Q1. The second quarter of 2025 began with further gains, reaching a new all-time high at $3,500.110 per ounce.
Several economic and political factors contributed to the rise in global demand for gold as a safe haven asset amid fears of a potential economic recession, inflation, and a looming trade war.
The recent pullback in gold prices has been somewhat driven by optimistic expectations regarding U.S.-China negotiations and the U.S. president's decision to reduce some tariffs, including those on automobiles.
Technical Outlook for Gold:
The latest declines in gold prices have brought some bearish signals, suggesting a shift from an uptrend to a downtrend. After rising approximately 14%, gold pulled back and broke below its most recent higher low, closing a daily candle below the $3,260.65 level, an indication of a potential trend reversal from bullish to bearish.
However, the Relative Strength Index (RSI) has not yet broken below the 50 mark, despite the recent price drop, which maintains the possibility for a rebound and suggests that the market hasn't entered full bearish momentum.
The $3,436.042 level serves as a key resistance area where selling pressure may emerge, potentially pushing prices down to target $3,265.100 as the first support level.
On the other hand, if the price breaks above $3,500.110 and posts a daily close above it, the bearish scenario would be invalidated.
From a fundamental perspective, gold’s continued decline is closely tied to developments in U.S.-China trade talks. Any positive signs of reaching an agreement or further tariff reductions could weigh negatively on gold prices.
Several economic and political factors contributed to the rise in global demand for gold as a safe haven asset amid fears of a potential economic recession, inflation, and a looming trade war.
The recent pullback in gold prices has been somewhat driven by optimistic expectations regarding U.S.-China negotiations and the U.S. president's decision to reduce some tariffs, including those on automobiles.
Technical Outlook for Gold:
The latest declines in gold prices have brought some bearish signals, suggesting a shift from an uptrend to a downtrend. After rising approximately 14%, gold pulled back and broke below its most recent higher low, closing a daily candle below the $3,260.65 level, an indication of a potential trend reversal from bullish to bearish.
However, the Relative Strength Index (RSI) has not yet broken below the 50 mark, despite the recent price drop, which maintains the possibility for a rebound and suggests that the market hasn't entered full bearish momentum.
The $3,436.042 level serves as a key resistance area where selling pressure may emerge, potentially pushing prices down to target $3,265.100 as the first support level.
On the other hand, if the price breaks above $3,500.110 and posts a daily close above it, the bearish scenario would be invalidated.
From a fundamental perspective, gold’s continued decline is closely tied to developments in U.S.-China trade talks. Any positive signs of reaching an agreement or further tariff reductions could weigh negatively on gold prices.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.