Gold Daily | Gold Retreats from Record High amid Profit-Taking and Dollar Weakness
Thursday, Apr 17, 2025 8:01 am ET
1min read 【Latest Gold Price and Recent Trends】
The international gold price has retracted from a record high due to profit-taking by investors following the surge triggered by U.S. President Donald Trump's new tariff policies. Gold is currently around $3,315 per ounce, experiencing a substantial drop of over $27 for the day.
【Technical Analysis】
Gold prices have shown a strong upward trend, reaching new historical highs. The daily charts indicate that gold is stable above all bullish moving averages, with technical indicators in the overbought range yet continuing to rise. On the 4-hour chart, momentum indicators are well above the midline, indicating strong momentum, though the RSI nearing 80 suggests potential overbought conditions.
【Market Sentiment and Economic Background】
The recent rise in gold has been driven by intensifying trade tensions between the U.S. and China, along with a weakening dollar. The market is also responding to concerns over stagflation—a period of slow economic growth coupled with rising inflation—which is historically favorable for gold. The Federal Reserve's stance of not rushing interest rate cuts and its focus on more data before any policy shifts have added to the market volatility, benefiting gold as a safe haven. Meanwhile, global economic slowdown fears and uncertainties surrounding U.S. tariffs continue to support gold prices.
【Analyst Opinions】
Analysts note that while gold prices have retreated from their peak due to profit-taking, strong support remains due to ongoing concerns about tariffs and a softer dollar. It's also noted that the traditional buyers' participation in this rally has diminished, which might suggest that the rally is closer to its end than its beginning. Nonetheless, unless the technical indicators suggest that gold is overbought, it is unlikely to see a significant downturn. Analysts are also focusing on the potential for further gold price increases if market conditions change, such as another stock market sell-off or a hawkish turn by the Federal Reserve.
The international gold price has retracted from a record high due to profit-taking by investors following the surge triggered by U.S. President Donald Trump's new tariff policies. Gold is currently around $3,315 per ounce, experiencing a substantial drop of over $27 for the day.
【Technical Analysis】
Gold prices have shown a strong upward trend, reaching new historical highs. The daily charts indicate that gold is stable above all bullish moving averages, with technical indicators in the overbought range yet continuing to rise. On the 4-hour chart, momentum indicators are well above the midline, indicating strong momentum, though the RSI nearing 80 suggests potential overbought conditions.
【Market Sentiment and Economic Background】
The recent rise in gold has been driven by intensifying trade tensions between the U.S. and China, along with a weakening dollar. The market is also responding to concerns over stagflation—a period of slow economic growth coupled with rising inflation—which is historically favorable for gold. The Federal Reserve's stance of not rushing interest rate cuts and its focus on more data before any policy shifts have added to the market volatility, benefiting gold as a safe haven. Meanwhile, global economic slowdown fears and uncertainties surrounding U.S. tariffs continue to support gold prices.
【Analyst Opinions】
Analysts note that while gold prices have retreated from their peak due to profit-taking, strong support remains due to ongoing concerns about tariffs and a softer dollar. It's also noted that the traditional buyers' participation in this rally has diminished, which might suggest that the rally is closer to its end than its beginning. Nonetheless, unless the technical indicators suggest that gold is overbought, it is unlikely to see a significant downturn. Analysts are also focusing on the potential for further gold price increases if market conditions change, such as another stock market sell-off or a hawkish turn by the Federal Reserve.
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