empty
22.04.2025 07:02 PM
XAU/USD. Analysis and Forecast

This image is no longer relevant

After setting a new all-time high at $3500 under overbought conditions, gold prices are pulling back. Nevertheless, bullish sentiment remains strong due to persistent concerns over the potential economic fallout from President Donald Trump's tariff policies. Combined with ongoing geopolitical tensions, this continues to serve as a tailwind for the safe-haven asset.

Trump's accusations against Fed Chair Jerome Powell could undermine confidence in the Federal Reserve's independence, potentially accelerating the timeline for interest rate cuts. This adds further pressure on the U.S. dollar, making gold more attractive to investors.

Currently, according to CME Group's FedWatch Tool, traders are already pricing in three potential rate cuts by the Fed this year, with a 25-basis-point cut expected as early as June.

Geopolitical tensions are also impacting the market by introducing additional risks, which support demand for safe-haven assets like gold.

To identify better trading opportunities, attention should be paid to the upcoming release of the U.S. Richmond Manufacturing Index, along with speeches by key FOMC members, which may influence demand for the U.S. dollar. On Wednesday, market participants will also be watching the U.S. Manufacturing PMI data, which could have a significant impact on market sentiment and XAU/USD dynamics.

From a technical perspective, the RSI above 70 indicates potential overheating, suggesting bulls should be cautious when opening new long positions. A pullback or consolidation could provide bulls with a stronger foundation. Support in the $3425–$3430 range is critical ahead of the psychological level at $3400. A break below this round level could trigger technical selling, dragging prices down to $3357. Further support lies in the $3344–$3330 level, and a decisive break below it would open the door to deeper losses.

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

Market pins blame on former president

In April, the US stock market took investors on its wildest roller coaster ride since the pandemic. The White House's "American Liberation Day" tariffs seemed to undermine the S&P 500's

Marek Petkovich 12:01 2025-05-01 UTC+2

Why Gold Is Falling for the Third Consecutive Day

Gold is declining for the third straight day amid signs of potential progress in trade negotiations between the U.S. and several other countries, which is dampening demand for safe-haven assets—even

Jakub Novak 11:40 2025-05-01 UTC+2

The Japanese Yen Has Declined Sharply — Here's Why

The yen fell sharply against the dollar and bond yields declined after the Bank of Japan (BoJ) left interest rates unchanged and pushed back the expected timeline for hitting

Jakub Novak 11:31 2025-05-01 UTC+2

The Eurozone Continues to Deliver Unexpected Results

According to the latest data, the eurozone economy grew more than expected at the beginning of the year, although it has yet to fully feel the impact of the U.S

Jakub Novak 09:13 2025-05-01 UTC+2

Why Did the Dollar Rise on Weak U.S. GDP Data?

The U.S. dollar completely ignored the sharp GDP contraction in the first quarter of this year, indicating that traders and investors are already prepared for a worse scenario than just

Jakub Novak 09:06 2025-05-01 UTC+2

What to Watch on May 1? A Breakdown of Fundamental Events for Beginners

There are relatively few macroeconomic events scheduled for Thursday, but that no longer matters much. Yesterday, there were plenty of important publications from the Eurozone, Germany, and the U.S. Even

Paolo Greco 06:50 2025-05-01 UTC+2

GBP/USD Overview on May 1, 2025

The GBP/USD currency pair continued its slight decline on Wednesday. The U.S. currency lost nearly 150 points on Monday without any visible reason. Therefore, the 80-point rise over Tuesday

Paolo Greco 06:34 2025-05-01 UTC+2

EUR/USD Overview on May 1, 2025

The EUR/USD currency pair continued trading within the same sideways channel of 1.1321–1.1426 on Wednesday, clearly visible on the hourly time frame. Despite a massive amount of macroeconomic data from

Paolo Greco 06:30 2025-05-01 UTC+2

100 Days of Trump's Presidency

While the dollar prepares for key economic data that could determine the Federal Reserve's next course of action, Donald Trump reflected on his first 100 days as President

Jakub Novak 13:31 2025-04-30 UTC+2

USD/CAD: The Pair Consolidates Under Pressure

USD/CAD is showing sideways movement, with spot prices currently trading around the 1.3840 level. The decline in crude oil prices to a three-week low, amid concerns that a full-scale trade

Irina Yanina 13:26 2025-04-30 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.