News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
Gold Falls as Trade Deal Hopes Dent Safe-Haven Demand
Economic
Summary:
Gold prices slipped below $3,200 during Friday's European session as optimism surrounding a potential US-China trade breakthrough diminished safe-haven appeal.
Sell
CLOSEDXAUUSD
End Time
3206.00
Entry Price
3120.00
TP
3280.00
SL
3289.32 -28.16 -0.85%
3089
Points
Profit
3120.00
TP
3175.11
CLOSING
3206.00
Entry Price
3280.00
SL
Gold prices came under renewed selling pressure on Friday, paring back much of the gains from the previous session’s recovery, as investor sentiment turned optimistic over global trade negotiations. The precious metal slid back below the $3,200 mark during early European trading, extending an intraday downtrend amid waning demand for traditional safe-haven assets.
At the heart of the market’s shift is progress on a tentative US-China trade truce. Both economic superpowers have agreed to sharply reduce tariffs and initiate a 90-day window aimed at finalizing a more comprehensive deal. Comments from US President Donald Trump further buoyed investor optimism after he hinted at productive talks with other key trading partners, including India, Japan, and South Korea. This optimism, however, has dulled demand for gold, which typically benefits from market uncertainty and geopolitical risk.
Even so, the broader macroeconomic and geopolitical landscape remains far from calm. Negotiators from Russia and Ukraine are holding peace talks in Istanbul — the first direct dialogue in three years — alongside a US delegation. But the absence of Russian President Vladimir Putin has already curbed expectations of any meaningful breakthrough. Simultaneously, Israel's military campaign in Gaza has intensified, with Thursday alone witnessing the deaths of at least 143 Palestinians in what is now one of the deadliest episodes in the conflict this year.
Such geopolitical tensions would typically bolster gold demand. However, Friday’s market action suggests that risk appetite, bolstered by trade optimism and slightly better-than-feared retail data, has temporarily overshadowed these global concerns.
Meanwhile, softening US inflation and consumer data released this week have reignited expectations for a series of interest rate cuts by the Federal Reserve. On Thursday, the US Producer Price Index (PPI) for final demand unexpectedly dropped 0.5% in April — its steepest decline since 2023 — building on Tuesday’s subdued Consumer Price Index (CPI) data. The CPI rose at an annual pace of just 2.2%, its slowest since February 2021. These trends point to easing price pressures and may offer the Fed more room to pivot toward a more accommodative monetary policy.
The Department of Commerce also reported a slowdown in consumer spending, with retail sales rising just 0.1% in April — a sharp moderation from March’s upwardly revised 1.7% gain. While this further supports a dovish Fed outlook, it also raises concerns about the broader growth trajectory of the US economy, reinforcing forecasts of a sluggish expansion in coming quarters.
Despite the supportive macroeconomic backdrop for gold — especially a weakening US Dollar and declining Treasury yields — the metal has struggled to build upward momentum. The US Dollar has remained under pressure for a second straight session, reflecting the market’s conviction that the Fed may soon cut rates. Yet gold has not capitalized on this, highlighting the metal's current vulnerability to broader risk sentiment shifts.
Technical Analysis 
From a technical standpoint, gold remains firmly ensnared in a bearish correction phase. The price continues to trade below the critical $3,260 resistance level and its 50-day Exponential Moving Average (EMA50), reinforcing a broader downtrend bias. The failure to hold above $3,200 opens the door for a retest of the crucial $3,120 support zone — the level from which Thursday’s recovery initially sprung.
Analysts also note the development of a negative divergence on the Relative Strength Index (RSI), suggesting waning bullish momentum despite prior price increases. This bearish RSI signal, coupled with the persistent price rejection at the upper boundary of a descending channel, adds to the probability of further declines in the near term.
As long as gold remains below the $3,260 resistance level, technical indicators point toward a continued bearish trend. A confirmed break below $3,200 could trigger an accelerated decline toward $3,120, with intermediate support expected around $3,180. Only a sustained rebound above $3,260 would negate this bearish setup and shift the short-term bias.
TRADE RECOMMENDATION
SELL GOLD
ENTRY PRICE: 3206
STOP LOSS: 3280
TAKE PROFIT: 3120
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2025 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.