Gold and Silver Prices Drop on Profit-Taking Before Easter Holiday Break

April 18, 2025 – DailyForex.pk
Gold and silver prices pulled back on Thursday in midday U.S. trading, as short-term traders booked profits ahead of the Good Friday long weekend, when most major markets in North America and Europe will be closed.

After reaching a new record high of $3,371.90 overnight (June Comex futures), gold retreated by $24.80, last trading at $3,321.50. Meanwhile, May silver dropped $0.52 to trade around $32.45 per ounce.

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📉 Market Sentiment Weighs on Metals After Fed Chair Powell’s Hawkish Remarks

The pullback comes just a day after Federal Reserve Chairman Jerome Powell delivered a speech in Chicago, where he expressed concerns about stagflation — a combination of high inflation and slow economic growth. Powell warned that ongoing trade tariffs could lead to higher consumer prices and rising unemployment.

His comments rattled equity markets, causing a sell-off and reigniting demand for safe-haven assets — although the gains were partially erased due to pre-holiday profit-taking.

Adding to the political drama, President Trump lashed out at Powell on social media, calling his speech “a complete mess” and even suggesting Powell should be removed from his position.

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💶 ECB Cuts Rates, Dollar Steady, Crude Oil Rallies

The European Central Bank (ECB), as expected, cut its main interest rate by 0.25% on Thursday, signaling a diverging policy path from the Fed.

In broader markets:

• The U.S. Dollar Index (DXY) remained slightly firmer
• Crude oil prices surged, with Nymex crude trading around $64.75 per barrel
• 10-year U.S. Treasury yields stood at 4.327%, reflecting cautious investor sentiment

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📊 Technical Outlook: Gold (XAU/USD)

Despite Thursday’s decline, gold bulls maintain a strong technical advantage. The June gold futures contract continues to show bullish structure on daily charts.

• Resistance levels: $3,350 → $3,371.90 (overnight high)
• Support levels: $3,296.40 (Thursday’s low) → $3,250 → $3,200 (critical support)
• Next bullish target: Break above $3,500
• Wyckoff Market Rating: 9.0 (Strong bullish bias)

While the rally may pause, the long-term trend remains upward unless gold falls below $3,200.

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📈 Technical Outlook: Silver (XAG/USD)

Silver bulls also retain near-term momentum, with May futures holding above key support and continuing the upward trend.

• Resistance levels: $33.00 → $33.175 (weekly high)
• Support levels: $32.00 → $31.655 → $31.00
• Next bullish target: Close above $34.00 for further breakout

With the bullish trend intact, silver remains sensitive to global risk sentiment and U.S. economic signals.

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📌 Conclusion: Metals May Consolidate as Traders Rebalance Ahead of Holiday

As markets prepare for a three-day Easter weekend, short-term traders are locking in gains following a record-breaking gold rally. However, ongoing geopolitical uncertainty, central bank divergence, and a weakening macro backdrop suggest that precious metals may resume their uptrend after the holiday.

📊 For live updates on gold and silver prices, XAU/USD & XAG/USD technical levels, and market-moving macro headlines, visit www.dailyforex.pk — your go-to source for global market analysis.