Gold Technical Analysis April 4, 2025
Current Price Levels and Technical Indicators:
As of 7:00 GMT on April 4, 2025, gold is trading at approximately $3,103.00 per ounce.
Relative Strength Index (RSI): The 14-day RSI has re-entered the bullish zone, easing off the overbought region, indicating that a fresh upswing remains in the offing.
Moving Averages:
The 20-day Simple Moving Average (SMA) is positioned around $3,048, serving as a dynamic support level.
The 50-day SMA is near $2,953, providing additional support in the event of a pullback.
Support and Resistance Levels:
Support Levels:
Immediate support is observed at $3,048, aligning with the 20-day SMA.
Further support is noted at $2,953, corresponding to the 50-day SMA.
Resistance Levels:
The psychological barrier at $3,150 serves as immediate resistance.
The record high of $3,168 is the next significant resistance level.
Fundamental Factors:
The recent fluctuations in gold prices are influenced by several key factors:
U.S. Tariff Announcements: President Donald Trump’s recent introduction of a 10% tariff on all U.S. imports, with higher rates for major trade partners, has heightened fears of increased prices and a potential economic slowdown. This has led investors to seek safe-haven assets like gold.
Geopolitical Tensions: Ongoing conflicts in regions such as Ukraine and the Middle East, coupled with shifts in U.S. foreign policy and escalating global trade disputes, have contributed to economic uncertainties, bolstering gold’s appeal as a safe-haven asset.
Central Bank Policies: Anticipation of potential interest rate adjustments by the Federal Reserve, in response to economic data and inflation concerns, may impact the opportunity cost of holding non-yielding assets like gold.
Conclusion:
Gold prices are currently consolidating near record highs, with technical indicators suggesting potential for further gains. However, the market remains sensitive to geopolitical developments and economic data releases. Traders should monitor these factors closely, as they are likely to influence gold’s price trajectory in the near term.