GOLD PRICE SHOWS SIGNS OF BULLISH EXHAUSTION AMID POSITIVE TURNAROUND IN RISK SENTIMENT

GOLD PRICE SHOWS SIGNS OF BULLISH EXHAUSTION AMID POSITIVE TURNAROUND IN RISK SENTIMENT

Gold prices experienced a significant pullback on April 23, 2025, after reaching a record high of $3,500 per ounce the previous day.

This decline reflects a shift in investor sentiment, influenced by developments in U.S. economic policy and trade negotiations.​

On April 22, gold prices surged to an all-time high of $3,500 per ounce, driven by heightened demand for safe-haven assets amid escalating trade tensions.

the subsequent day saw a pullback as investors engaged in profit-taking, leading to a decline in gold prices.

The U.S. dollar regained strength following President Donald Trump's comments indicating a willingness to de-escalate trade tensions with China.

This development reduced the appeal of gold, which is often inversely correlated with the dollar.

President Trump's decision to withdraw threats to dismiss Federal Reserve Chair Jerome Powell and his optimistic stance on trade negotiations with China contributed to improved market sentiment.

These factors led to a rebound in U.S. stock markets and a reduction in demand for gold as a safe-haven asset.

Analysts suggest that while gold's short-term outlook may be bearish due to the recent pullback, the long-term bullish trend remains intact.

Factors such as ongoing trade uncertainties and potential inflationary pressures continue to support gold's appeal.

The direction of gold prices will depend on developments in U.S.-China trade relations, Federal Reserve policies, and broader economic indicators.

Investors will be closely monitoring these factors to assess the sustainability of gold's upward trajectory.