As of mid-May 2025, gold prices have experienced a notable decline, retreating from April's record highs above $3,500 per ounce to approximately $3,180. This downturn is attributed to easing geopolitical tensions, particularly the U.S.-China trade truce, and a strengthening U.S. dollar, which have reduced the demand for gold as a safe-haven asset.
Technical Analysis: Short-Term Outlook
Key Support Levels: Analysts identify the $3,155 level as a critical support point. A breach below this could signal further declines towards the $3,000–$3,050 range.
Resistance Zones: Resistance is observed around $3,275–$3,287.85. A decisive move above this range may indicate a potential reversal or continuation of the uptrend.
Indicators: The Relative Strength Index (RSI) remains in bearish territory, suggesting continued downward pressure. However, if gold maintains its position above the ascending channel's lower boundary, a rebound towards $3,450 is plausible.
Fundamental Analysis: Medium-Term Outlook
Central Bank Demand: The People's Bank of China has increased its gold reserves for the sixth consecutive month, reflecting sustained institutional interest.
Investor Sentiment: Despite recent corrections, gold remains up 21% year-to-date, indicating robust investor confidence. However, nearly 50% of fund managers surveyed by Bank of America believe gold is overvalued, which could lead to cautious trading behavior.
Economic Indicators: U.S. producer prices fell by 0.5%, and retail sales stagnated, with inflation dipping to 2.3%. These factors may influence Federal Reserve policy decisions, potentially affecting gold prices.
Forecast Summary
Next Week: Gold prices may test the $3,155 support level. A breach could lead to further declines towards $3,000. Conversely, holding above this level might prompt a rebound towards $3,275.
Next Month: Analysts anticipate a consolidation phase, with gold trading between $3,000 and $3,300. Factors such as central bank purchases and economic data releases will play pivotal roles in determining the direction.
Technical Analysis: Short-Term Outlook
Key Support Levels: Analysts identify the $3,155 level as a critical support point. A breach below this could signal further declines towards the $3,000–$3,050 range.
Resistance Zones: Resistance is observed around $3,275–$3,287.85. A decisive move above this range may indicate a potential reversal or continuation of the uptrend.
Indicators: The Relative Strength Index (RSI) remains in bearish territory, suggesting continued downward pressure. However, if gold maintains its position above the ascending channel's lower boundary, a rebound towards $3,450 is plausible.
Fundamental Analysis: Medium-Term Outlook
Central Bank Demand: The People's Bank of China has increased its gold reserves for the sixth consecutive month, reflecting sustained institutional interest.
Investor Sentiment: Despite recent corrections, gold remains up 21% year-to-date, indicating robust investor confidence. However, nearly 50% of fund managers surveyed by Bank of America believe gold is overvalued, which could lead to cautious trading behavior.
Economic Indicators: U.S. producer prices fell by 0.5%, and retail sales stagnated, with inflation dipping to 2.3%. These factors may influence Federal Reserve policy decisions, potentially affecting gold prices.
Forecast Summary
Next Week: Gold prices may test the $3,155 support level. A breach could lead to further declines towards $3,000. Conversely, holding above this level might prompt a rebound towards $3,275.
Next Month: Analysts anticipate a consolidation phase, with gold trading between $3,000 and $3,300. Factors such as central bank purchases and economic data releases will play pivotal roles in determining the direction.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.