After reaching a historic high of $3,500 per ounce last month, gold entered a corrective phase this week. On Thursday, the price dropped to $3,211—its lowest level in two weeks. Despite a slight rebound on Friday to $3,255, gold is still down around 2.1% for the week. Let’s take a closer look at the recent developments and gold market analysis.
What caused this decline?
Improved market sentiment and positive signals from global trade negotiations have led investors to move away from safe-haven assets like gold and shift toward riskier markets.
Recent remarks from Donald Trump suggested a possible trade deal with China, India, Japan, and South Korea. In addition, Chinese state-affiliated media hinted that the U.S. had reached out to resume negotiations—news that played a key role in shifting market direction.
Bob Haberkorn, senior market strategist at RJO Futures, stated: “Hints of potential trade deals are triggering a risk-on sentiment in the market, leading to profit-taking in gold.”
Gold Price Analysis May 4th, 2025
Gold Price Analysis May 4th, 2025
Last week, gold dipped into the $3,193–$3,223 range, an area that previously sparked a strong $300 rally. However, the psychological resistance at $3,500 capped further upside.
With an upcoming economic event this Wednesday—namely the U.S. Federal Reserve’s interest rate decision—market participants are watching closely to see whether gold can hold above the $3,190 support or not.
On the weekly timeframe, a three-candle bearish formation has appeared. The weekly close below $3,260 has given the first signal for a potential deeper drop. Therefore, printing another bearish weekly candle this week is not unlikely.
Last week’s volatility placed gold within a downward channel. The price recently rejected the midline of that channel around $3,260, increasing the probability of a break below $3,190. If that happens, we could see a further decline toward $3,100. Otherwise, a rebound toward $3,320 remains a possible upside target.
Submit Your Comments
(Replying)
Please keep in mind to avoid offensive keywords and also fake information.
Be the first one to comment.