April 23, 2025 – DailyForex.pk
Gold prices reversed sharply from the record high of $3,500, forming a bearish hammer on the daily chart amid easing investor anxiety. However, the broader bullish trend remains intact, as ongoing geopolitical tensions and global trade concerns continue to support precious metals.
At the time of writing, gold (XAU) is consolidating around $3,310, while silver (XAG) holds firm near the $32.50 mark, setting the stage for a possible upward breakout.
📉 Gold Price Pulls Back as Risk Appetite Returns
Gold’s correction came after President Trump reassured markets that he would not remove Federal Reserve Chair Jerome Powell, calming fears over the Fed’s independence. Additionally, comments from Treasury Secretary Scott Bessent suggested a de-escalation in U.S.-China trade tensions, which shifted sentiment back toward risk assets.
This change in tone triggered profit-taking in gold, pushing prices down from all-time highs. Despite the short-term pullback, the underlying macro environment remains favorable for precious metals. Powell’s earlier remarks about the potential for stagflation continue to weigh on investor sentiment, reinforcing gold’s role as a hedge.
💹 Gold ETF Inflows Highlight Investor Demand
According to the World Gold Council, global gold ETF inflows reached $21 billion in Q1 2025, including a massive $8.6 billion in March alone. These figures mark the second-highest quarterly inflow on record and confirm sustained investor interest.
Meanwhile, the U.S. 10-year Treasury yield dropped two basis points to 4.395%, further supporting non-yielding assets like gold.
📊 Gold Technical Analysis: Price Eyes Support Zone for Rebound
📅 Daily Chart: Reversal from $3,500 Resistance
- Gold broke above $3,350 within a broadening wedge pattern, reaching a new peak at $3,500.
- The rally stalled, forming a bearish hammer candlestick—a signal of short-term exhaustion.
- Key support levels lie between $3,200 and $3,300, which could provide a base for the next rally.
⏱️ 4-Hour Chart: Bullish Setup Remains Active
- Short-term overbought conditions led to a retreat from $3,500.
- A bounce from the $3,250–$3,300 support zone may reignite momentum.
- Bulls still target a retest of the $3,500 level once support is confirmed.
🥈 Silver Technical Analysis: Consolidation Before Breakout
📅 Daily Chart: Support Above 50-Day and 200-Day SMAs
- Silver remains in a bullish consolidation phase.
- The price continues to hold above both the 50-day and 200-day moving averages.
- RSI remains balanced, suggesting room for upside.
⏱️ 4-Hour Chart: Breakout Potential Builds
- Price is hovering near a decision zone at $32.50.
- A break above $33.00 could open the door for a rally toward $35.00.
- Downside risk exists if support at $31.70 fails.
💵 US Dollar (DXY) Analysis: Bearish Structure Persists
📅 Daily Chart: Rebound Fails to Reverse Trend
- The U.S. Dollar Index (DXY) remains under pressure despite a minor bounce from 98.00.
- Strong resistance looms between 100.00 and 100.65, capping recovery efforts.
⏱️ 4-Hour Chart: Descending Channel Signals Further Weakness
- DXY continues to trade inside a descending channel.
- Current rebound is seen as corrective, not a trend change.
- A breakdown below 98.00 could send the index toward 96.00, boosting gold and silver prices further.
📌 Conclusion: Bullish Bias Holds as Metals Correct
While gold has pulled back from its $3,500 high, the broader bullish trend remains intact, supported by macro uncertainty, strong ETF inflows, and weakening dollar fundamentals. Silver’s consolidation pattern also points toward a breakout if key levels hold.
💡 Investors should watch $3,300 in gold and $32.50 in silver for confirmation of the next bullish leg.
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