Gold Technical Analysis April 7, 2025
Current Price Levels and Technical Indicators:
As of 7:00 GMT on April 7, 2025, gold (XAU/USD) is trading at approximately $3,023 per ounce. The Relative Strength Index (RSI) is at 42, indicating mild bearish momentum but not yet in oversold territory. Gold is trading below the 50-period Exponential Moving Average (EMA), suggesting a bearish trend in the short term.
Support and Resistance Levels:
Support: Immediate support is observed at $3,003 per ounce.
Resistance: The first resistance level is at $3,058 per ounce.
Fundamental Factors:
The recent implementation of aggressive U.S. tariffs has intensified fears of a global recession, leading to a broad market sell-off. This environment has paradoxically pressured gold prices, as investors liquidate positions to cover losses elsewhere. Despite this, central banks, particularly China’s, continue to accumulate gold reserves, providing long-term support for the metal. Additionally, HSBC has raised its average gold price forecast for 2025 to $3,015 per ounce, citing geopolitical risks.
Conclusion:
Gold is currently exhibiting mild bearish momentum, with key support at $3,003 and resistance at $3,058. Traders should monitor ongoing trade tensions and central bank activities, as these factors could significantly influence price movements.