Gold Daily | Strong Dollar and Easing Trade Tensions Lead to 2% Gold Price Drop, Testing Key Support Levels

【Latest Gold Price and Recent Trends】

On April 25, Friday, gold prices saw a sharp decline of nearly 2% due to a stronger dollar and easing U.S.-China trade tensions, with spot gold dropping 1.96% to $3,283.10 per ounce. This week's cumulative decline is over 1%.

【Technical Analysis】

On the daily chart, gold prices are slowly descending, reflecting the market's digestion of stagflation risks. Buyers may find better entry points around the previous high at 3167. Sellers will watch if prices can break below this area, targeting the main trend line near 3100. On the 4-hour chart, gold is testing support around 3284. Buyers previously entered at this position, hoping for a rebound to historical highs. Sellers aim to break this support, targeting the 3167 area. The 1-hour chart indicates buyers target resistance at 3367 upon rebound, while sellers focus on whether 3285 support will fail.

【Market Sentiment and Economic Background】

Gold's appeal as a hedge is pressured by easing U.S.-China tariff tensions and a strengthening dollar, which raises the cost for non-U.S. buyers. Despite this week's pullback, gold has risen over 25% this year due to trade war concerns and strong demand from central banks. Statements from both U.S. and Chinese officials indicate an ongoing dialogue, hinting at possible tariff reductions, which tempers gold's allure as a safe haven asset. The Cleveland Fed President indicated no immediate plans for rate cuts, but space for policy action in June remains open if economic conditions change, adding complexity to the market outlook.

【Analyst Opinions】

Analysts believe the easing of trade tensions could be a positive signal for reduced geopolitical pressure, which might exert mild downward pressure on safe-haven assets like gold. However, fundamental factors such as structural demand from emerging markets and central banks maintaining gold reserves indicate continued support for gold prices in the long term. Despite short-term volatility, gold remains a bullish investment in the broader context, especially as the Federal Reserve maintains accommodative policies that could lower real yields further, sustaining gold's upward trajectory.