Gold Retreats from Record High as Profit Taking and Stock Rebound Take Center Stage

April 23, 2025 – DailyForex.pk
Gold prices dropped from record highs on Tuesday, as short-term traders locked in profits following a rally to a new all-time high of $3,509.90, basis June Comex futures. A rebound in U.S. stock markets also added downward pressure, causing the yellow metal to lose early gains.

By midday, June gold was down $16.30, trading at $3,409.00, while May silver surged $0.534 to $33.045, maintaining its bullish momentum.

📈 Stocks Rebound as US-China Trade Tensions Ease

Markets saw a sudden shift in sentiment after comments from the U.S. Treasury Secretary suggested that the ongoing US-China trade dispute may soon de-escalate. The news helped push U.S. equity indexes sharply higher, triggering a wave of profit-taking in gold and limiting further gains.

Despite the pullback, analysts say gold’s larger uptrend remains intact, but signs of exhaustion are emerging—particularly as volatility increases and investors reassess risks.

💹 Technical Picture: Gold Bulls Hold Edge, But Momentum Slows

June Gold Futures – Key Levels to Watch:

• Immediate Resistance: $3,509.90 (Today’s high), then $3,550.00
• Support Zones: $3,375.00 and $3,344.00 (This week’s low)
• Major Downside Target: $3,200.00

While bulls still hold a near-term technical advantage, today’s weaker close and the parabolic price movement may suggest a short-term market top is forming. Still, analysts caution that shorting gold in this environment remains highly risky.

🥈 Silver Extends Rally, Remains in Uptrend

Unlike gold, silver continued its climb, breaking above recent resistance and gaining ground during midday trade.

May Silver Futures – Key Technical Levels:

• Immediate Resistance: $33.175 and $33.50
• Immediate Support: $32.255 and $32.00
• Bullish Target: $34.00
• Bearish Target: $31.00

Silver bulls maintain a firm technical advantage, with the daily chart showing a clear uptrend. The next test lies at $34.00, a major resistance level that could confirm continued momentum if breached.

🧾 Market Drivers: Dollar Rebounds, Crude and Treasuries in Focus

• The US Dollar Index (DXY) rebounded sharply after hitting a three-year low on Monday. A stronger dollar typically weighs on precious metals by making them more expensive for international buyers.
• Crude oil prices also rallied, with Nymex futures trading near $65 per barrel, supporting broader commodities.
• The 10-year U.S. Treasury yield dipped slightly to 4.375%, reflecting cautious investor sentiment despite the equity rebound.

📌 Outlook: Gold and Silver Face Volatility, Bulls Must Hold Support

As gold consolidates below its fresh record high, traders are watching for a clear directional breakout. If $3,375 fails to hold, a larger correction toward $3,200 could unfold. On the flip side, a push back toward $3,510 and above would reinforce bullish strength.

Meanwhile, silver remains supported by strong technical structure and bullish sentiment.

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