Forex Analysis & Reviews: 21.04.2025 - XAU/USD. Analysis and...

Live Chat

InstaForex - Official partner of Dragon Racing

This section features the most important information about trading with InstaForex. We provide both analysis from leading experts for experienced traders and articles on trading conditions for beginners. Our services will help increase your profit potential.

Become Trader

Account Opening

See also

Trading Conditions

Forex Analytics

Charts

This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.

Start as Beginner

How to start trading

Useful information

Training and recordings

InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.

Become Investor

PAMM System

ForexCopy System

Passive investments

OYS account

Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.

Become Partner

Main Page

Partner Area

Advantages for Affiliates

Registration

This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.

All Promo Campaigns

Bonuses

Contests

Events

Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.

Full details

Forums

We are in social networks

Forex humour

Forex Portal

InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.

Learn More

History

Why Choose Us

InstaSport

Regulation

Company News

Awards

InstaForex Stars

InstaForex Offline

Headquarters

Key documents

Social Responsibility

InstaForex Loprais Team - Official participant of the Dakar rally

21.04.2025 07:15 PM

XAU/USD. Analysis and Forecast

Gold continues to show strong demand, trading near its all-time high, just below the key psychological level of $3400. The hardline international trade policy pursued by U.S. President Donald Trump, along with growing fears of a U.S. recession and escalating trade tensions between the U.S. and China, continues to weigh on investor sentiment. This, in turn, supports ongoing interest in gold as a safe-haven asset.

Trump's recent imposition of tariffs—up to 145% on some Chinese goods and up to 245% on others—alongside China's retaliatory tariffs of 125% on U.S. exports, has significantly increased global trade tensions. These developments raise the risk of a recession in the U.S., which further weakens the U.S. dollar, already trading at lows last seen in April 2022.

Trump's unpredictable tariff announcements are undermining confidence in the world's largest economy. Combined with expectations of more aggressive monetary easing by the Federal Reserve, this creates an even more favorable environment for the growth of gold prices. Nonetheless, gold bulls may pause on short-term charts due to increasingly overbought conditions.

Despite hawkish comments from Fed Chair Jerome Powell, U.S. dollar bulls have failed to capitalize. Markets continue to price in the possibility of a full percentage point cut in the Fed's benchmark rate by the end of the year, further fueling gold's appeal.

Although recent U.S.-Iran nuclear negotiations and a one-day ceasefire in Ukraine announced by Vladimir Putin offer a glimmer of hope for reduced geopolitical tensions, these developments have not significantly improved investor confidence. Instead, demand for traditional safe-haven assets like gold remains robust.

From a technical perspective, sustained buying confirms a positive short-term outlook for the precious metal. However, the Relative Strength Index (RSI) is deep in overbought territory—well above the 70 mark—potentially prompting bulls to pause. It would be prudent to wait for some short-term consolidation or a moderate pullback before initiating new positions in anticipation of the continuation of the uptrend.

If a corrective decline occurs, initial support is seen around the $3350 zone, followed by the Asian session low near $3329–3330. A drop below this area would accelerate the decline toward the round level of $3300, and then potentially to Friday's low near $3284. This level is key—its breach could open the door to deeper losses.

No major economic data releases are expected on Monday that could significantly impact the market. However, a speech by Chicago Fed President Austan Goolsbee could influence the dollar's trajectory. Traders should also watch Wednesday's PMI releases, which could provide new insights into the health of the global economy.

You have already liked this post today

*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.