Gold Price Rebounds to $3,350 as Trade Tensions Ease

The gold price surged to $3,350 per troy ounce on Thursday, bouncing back from recent declines that shook investor confidence. Despite this temporary dip, experts believe that the upward trend is likely to continue.

Key Factors Driving Gold’s Movement

U.S. Treasury Secretary Scott Bessent emphasized the importance of reducing high tariffs between the U.S. and China to advance trade negotiations. While President Donald Trump is not planning to unilaterally remove tariffs on Chinese goods, there have been talks of exempting automakers from certain tariffs, easing concerns over trade complications.

Gold has seen a significant surge of over 30% since the beginning of the year, with the gold-to-silver ratio hitting its highest level since 1994 (excluding the pandemic period). This rally is largely attributed to diminishing confidence in U.S. economic stability due to escalating trade barriers and uncertain policy shifts, leading investors to seek refuge in gold as a safe haven asset.

Gold Technical Analysis

Technical analysis indicates that the market is currently forming a downside wave structure towards the 3225 level, with a potential correction to 3363 before a new wave of decline to 3055. The MACD indicator supports this scenario with a downward trend. On the H1 chart of XAU/USD, a consolidation range around 3363 has been observed, with a potential fifth wave of decline to 3232. The Stochastic oscillator also indicates a downward trend.

Conclusion

Despite recent market volatility, the long-term bullish outlook for gold remains strong, driven by ongoing global risks and changing investor sentiment.

By RoboForex Analytical Department

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Disclaimer

Any forecasts presented here are the author’s personal opinion and should not be considered as trading advice. RoboForex does not take responsibility for trading decisions made based on this analysis.