Gold – Rebound in Sight with Rising Trade Tensions
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  • Market Insights  >  Trade Of The Day

8 April 2025,23:56

Trade Of The Day

Gold – Rebound in Sight with Rising Trade Tensions

8 April 2025, 23:56

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Fundamental Analysis:

Gold prices have declined despite the sharp sell-off in equity markets, as some investors liquidated their gold holdings to raise cash and avoid forced selling. Nevertheless, the long-term outlook for gold remains supported by persistent global uncertainties and the rising risk of a prolonged US-China trade conflict. With the United States pledging to impose tariffs of up to 104% on Chinese goods and no sign of de-escalation, gold could benefit from increased safe-haven demand in the longer term.

Technical Breakout:  

From a technical perspective, gold is currently testing its upward trendline and support level around 2955.00. The MACD indicator shows signs of diminishing bearish momentum, while the RSI is at 30 and attempting to rebound from oversold territory. If bullish momentum builds, prices could retest the resistance levels at 3005.00. However, if the price breaks below the trendline and the 2955.00 support, the downtrend may resume with the next key support at 2880.00.

Potential Risks: Ongoing U.S.-China trade tensions could fuel further volatility on the gold movement.

Monitoring: Stay updated on potential trade tensions between US and world to gauge the likelihood movement for several asset classes.

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  • Market Insights  >  Trade Of The Day

8 April 2025,23:56

Trade Of The Day

Gold – Rebound in Sight with Rising Trade Tensions

8 April 2025, 23:56

Share on:
FacebookLinkedInTwitterShare

Fundamental Analysis:

Gold prices have declined despite the sharp sell-off in equity markets, as some investors liquidated their gold holdings to raise cash and avoid forced selling. Nevertheless, the long-term outlook for gold remains supported by persistent global uncertainties and the rising risk of a prolonged US-China trade conflict. With the United States pledging to impose tariffs of up to 104% on Chinese goods and no sign of de-escalation, gold could benefit from increased safe-haven demand in the longer term.

Technical Breakout:  

From a technical perspective, gold is currently testing its upward trendline and support level around 2955.00. The MACD indicator shows signs of diminishing bearish momentum, while the RSI is at 30 and attempting to rebound from oversold territory. If bullish momentum builds, prices could retest the resistance levels at 3005.00. However, if the price breaks below the trendline and the 2955.00 support, the downtrend may resume with the next key support at 2880.00.

Potential Risks: Ongoing U.S.-China trade tensions could fuel further volatility on the gold movement.

Monitoring: Stay updated on potential trade tensions between US and world to gauge the likelihood movement for several asset classes.

Open Your Free Demo Account And Start Trading Risk-Free

Join Now

Start trading with an edge today

Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.

  • Start trading with deposits as low as $50 on our standard accounts.
  • Get access to 24/7 support.
  • Access hundreds of instruments, free educational tools, and some of the best promotions around.
Join Now

Latest Posts

Fast And Easy Account Opening

Create account
  • 1

    Register

    Sign up for a PU Prime Live Account with our hassle-free process.

  • 2

    Fund

    Effortlessly fund your account with a wide range of channels and accepted currencies.

  • 3

    Start Trading

    Access hundreds of instruments under market-leading trading conditions.

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Gold – Rebound in Sight with Rising Trade Tensions

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