Gold Daily | Spot Gold Hits New High Amid Weak Dollar and US-China Trade Tensions, Analysts Expect More Gains
Monday, Apr 21, 2025 8:01 am ET
1min read 【Latest Gold Price and Recent Trends】
Gold prices reached a new all-time high, driven by a weakening dollar and escalating US-China trade tensions. As of the latest report, spot gold increased by 1.9% to $3,392, following a surge that touched $3,395.95.
【Technical Analysis】
After surpassing $3,350, gold's annual rise hit 28%, exceeding last year's 24%. Although technically overbought, a potential correction could lead prices back to $3,250 or $3,140. If $3,300 acts as a strong support, gold may challenge $3,400 or higher. Analysts note that despite recent gains, gold's technical indicators suggest caution, with historical patterns indicating possible corrections after such rapid increases.
【Market Sentiment and Economic Background】
Gold's rally is fueled by fears of a global economic downturn and the ongoing US-China trade conflict, enhancing its appeal as a safe-haven asset. The weakening dollar, currently at a three-year low, further supports gold's upward trend. Concerns over US policy volatility under Trump's administration, along with geopolitical tensions, have accelerated the shift towards gold as a refuge, with central banks also increasing their reserves.
【Analyst Opinions】
Analysts expect gold prices to continue rising, potentially reaching $3,500 in the coming months. The persistent demand in uncertain times is bolstered by geopolitical and economic tensions. While some anticipate a significant correction, the strong momentum and current market conditions make predicting an exact top challenging. Analysts recommend buying on dips, with strategic focus on key support levels, as gold's role as a monetary asset gains prominence amidst global instability.
Gold prices reached a new all-time high, driven by a weakening dollar and escalating US-China trade tensions. As of the latest report, spot gold increased by 1.9% to $3,392, following a surge that touched $3,395.95.
【Technical Analysis】
After surpassing $3,350, gold's annual rise hit 28%, exceeding last year's 24%. Although technically overbought, a potential correction could lead prices back to $3,250 or $3,140. If $3,300 acts as a strong support, gold may challenge $3,400 or higher. Analysts note that despite recent gains, gold's technical indicators suggest caution, with historical patterns indicating possible corrections after such rapid increases.
【Market Sentiment and Economic Background】
Gold's rally is fueled by fears of a global economic downturn and the ongoing US-China trade conflict, enhancing its appeal as a safe-haven asset. The weakening dollar, currently at a three-year low, further supports gold's upward trend. Concerns over US policy volatility under Trump's administration, along with geopolitical tensions, have accelerated the shift towards gold as a refuge, with central banks also increasing their reserves.
【Analyst Opinions】
Analysts expect gold prices to continue rising, potentially reaching $3,500 in the coming months. The persistent demand in uncertain times is bolstered by geopolitical and economic tensions. While some anticipate a significant correction, the strong momentum and current market conditions make predicting an exact top challenging. Analysts recommend buying on dips, with strategic focus on key support levels, as gold's role as a monetary asset gains prominence amidst global instability.
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