After hitting a record high of $4,179.47 per ounce on Tuesday, gold prices retreated sharply, currently fluctuating around $4,130. This pullback was primarily driven by two factors: first, Trump’s shift in tariff stance boosted market risk appetite and weakened safe-haven demand; second, a technical rebound in the US dollar prompted profit-taking in gold, which was already heavily overbought. However, market expectations of two Federal Reserve rate cuts this year have limited the dollar’s upside. Coupled with ongoing US political uncertainty, trade tensions, and geopolitical conflict risks, gold’s safe-haven status remains solid, and downside is expected to be limited.
From a technical perspective, gold closed with another large bullish candlestick on the daily chart, demonstrating strong bullish momentum.
Today’s pullback low near $4090 has become key support, and 4090 could be considered a near-term bull-bear watershed. Trading strategies recommend buying on dips following pullbacks.
Gold Recommendation: Buy lightly at the current price of 4129, and add to your long position if the price dips to 4118-4112. Stop loss at 4000, target at 4170.
