empty
04.04.2025 11:50 AM
XAU/USD. Analysis and Forecast

This image is no longer relevant

Gold is attracting some sellers for the second day in a row, despite the absence of any clear fundamental catalyst for a decline. Most likely, this is due to trading repositioning ahead of the key U.S. Nonfarm Payrolls (NFP) report, as well as a corrective move in the U.S. dollar driven by short-covering.

This image is no longer relevant

Recent actions by U.S. President Donald Trump—who announced reciprocal tariffs on imports—have shaken global financial markets and heightened concerns about potential negative impacts on the global economy. This has led to increased expectations that the Federal Reserve will resume its rate-cutting cycle, which in turn supports interest in gold as a safe-haven asset.

Interestingly, the yield on 10-year U.S. Treasury bonds has fallen below 4% for the first time in six months, preventing the dollar from recovering. At the same time, data on U.S. services sector activity indicated a slowdown, which further weighs on the dollar and supports the precious metal.

From a technical perspective, gold may find support near the $3057 area, which aligns with the 100-period simple moving average (SMA) on the 4-hour chart—a key reference point for short-term traders. A break below this level could trigger technical selling, making the metal vulnerable to a deeper corrective decline toward intermediate support at $3035, en route to the psychological level of $3000.

This image is no longer relevant

On the other hand, the resistance zone around $3116 will be key for the bulls. A breakout above this area could signal the continuation of the multi-month uptrend during which gold reached a new all-time high—especially now that oscillators on the daily chart have exited overbought territory.

For more actionable trading opportunities today, it is advisable to focus on the release of the NFP employment data, which could significantly impact market direction.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

High Inflation Supports the Pound. GBP/USD Outlook

The UK Consumer Price Index (CPI) rose from 2.6% to 3.5% in April, surprising the market, which had expected an increase to 3.3%. The core CPI also exceeded forecasts

Kuvat Raharjo 18:47 2025-05-21 UTC+2

USD/CAD. Analysis and Forecast

The USD/CAD pair is attracting sellers for the third consecutive day. A break below the 1.3900 level signals increased selling pressure, which could lead to further downside. Rising oil prices—driven

Irina Yanina 18:41 2025-05-21 UTC+2

USD/CHF. Analysis and Forecast

For the third consecutive day, the USD/CHF pair continues to lose ground. The fundamental backdrop suggests that the path of least resistance remains to the downside. The pair has been

Irina Yanina 18:38 2025-05-21 UTC+2

GBP/JPY. Analysis and Forecast

Following the release of UK consumer inflation data, which came in above expectations, the GBP/JPY pair slightly pared back its intraday losses. However, it failed to attract significant buying interest

Irina Yanina 11:25 2025-05-21 UTC+2

Will Global Central Banks Continue to Cut Interest Rates? (Bitcoin May Resume Growth and USD/JPY May Decline)

Among the economically developed nations—those that belong to the Western wing of the global economy—there is an important rule: a target of 2% inflation, specifically consumer inflation. Achieving this target

Pati Gani 09:46 2025-05-21 UTC+2

Market: Do or Die!

Markets can remain irrational longer than you can remain solvent. The S&P 500 rally from the April lows—adding $8.6 trillion in market cap—often appeared irrational. Investors ignored the Federal Reserve's

Marek Petkovich 08:23 2025-05-21 UTC+2

GBP/USD Overview – May 21: The Rollercoaster Continues

On Tuesday, the GBP/USD currency pair declined, unlike on Monday. While the euro's movement required searching for reasons behind the dollar's drop, the technical picture for the pound is straightforward

Paolo Greco 07:46 2025-05-21 UTC+2

EUR/USD Overview – May 21: The Theater of Chaos and Absurdity Continues

The EUR/USD currency pair moved sluggishly on Tuesday, which was not surprising given the absence of news. Monday didn't bring much in the way of important news either

Paolo Greco 07:46 2025-05-21 UTC+2

What to Pay Attention to on May 21? A Breakdown of Fundamental Events for Beginners

Very few macroeconomic events are scheduled for Wednesday. However, the UK inflation report holds significant importance for the market, or rather, used to . As we can see, traders continue

Paolo Greco 06:45 2025-05-21 UTC+2

The Fed Maintains a Wait-and-See Approach

The market expects active measures from the U.S. central bank, while Donald Trump keeps demanding that Jerome Powell cut interest rates. It's worth noting that Powell cannot make such decisions

Chin Zhao 00:41 2025-05-21 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.