24 Mar 2025

Gold prices continue to exhibit a corrective decline towards $3,000 as the week begins. Positive sentiment surrounding the Wall Street Journal's report on U.S. tariffs and optimism regarding a peace agreement in Ukraine are contributing to the downward pressure on gold prices. The market still views gold as a 'buy-the-dips' opportunity on the daily chart, provided that the $2,950 level is upheld.

As trading commences on Monday, gold is experiencing a setback, following Friday's correction from its peak of $3,058. The current market environment, characterized by a risk-on attitude, is undermining gold's appeal as a safe-haven asset.

With new sellers entering the market, the question arises: what lies ahead for gold prices? As the week unfolds, gold continues its downward correction as investors gravitate towards riskier assets, fueled by renewed optimism regarding U.S. President Donald Trump’s tariffs, expectations of stimulus from China, and the possibility of a peace deal in Ukraine.

The most recent report from the Wall Street Journal (WSJ) indicates that the White House is likely to refine its list of tariffs scheduled to take effect on April 2. This adjustment may exclude certain industry-specific tariffs while imposing reciprocal tariffs on nations with substantial trade relationships with the United States (US).

Moreover, the news that China aims to enhance consumer spending is contributing positively to market sentiment, as there is growing optimism regarding a potential resolution to the Russia-Ukraine conflict, particularly following the recent discussions between US and Ukrainian officials in Saudi Arabia.

Ukrainian Defense Minister Rustem Umerov described the discussions held on Sunday in Saudi Arabia as "productive and focused."

Attention is now shifting to the upcoming negotiations between Russian and US representatives on Monday concerning the peace agreement for Ukraine. Traders are preparing for the initial readings of global Purchasing Managers' Index (PMI) metrics, which are expected to provide insights into the global economic outlook amid concerns over a recession triggered by Trump's tariffs.

Additionally, market participants will be vigilant regarding any updates on Trump's intentions to implement global reciprocal tariffs starting April 2, as these developments are likely to influence risk sentiment and the movement of gold prices in the short term.

The Gold price continues to uphold its 'buy-the-dips' reputation following a confirmed breakout from the ascending triangle earlier this month.

Nevertheless, with the 14-day Relative Strength Index (RSI) currently trending downward, a further decline seems likely. However, as long as the RSI remains above the midpoint, any declines in the Gold price are expected to attract buying interest.

Should the recent downward movement extend, the Gold price may approach Friday’s low of $3,000, and if it falls below that, the previous week's low of $2,982 will come into play.

Further down, the 21-day Simple Moving Average (SMA) and the support level of the triangle at $2,950 will present significant resistance for sellers.

On the other hand, if buyers re-enter the market, the Gold price could revisit the record high of $3,058, and if they regain momentum, it may pave the way to test the triangle target set at $3,080.

From a technical perspective, the price of Gold continues to uphold its 'buy-the-dips' reputation following a confirmed breakout from the ascending triangle earlier this month.

Nevertheless, with the 14-day Relative Strength Index (RSI) currently trending downward, a further price retracement seems likely. However, as long as the RSI remains above the midpoint, any declines in Gold's price are expected to attract buying interest swiftly.

Should the recent downward movement extend, Gold may test the low of $3,000 reached on Friday, with the previous week's low of $2,982 also coming into play if that level is breached.

Further down, the 21-day Simple Moving Average (SMA) and the support confluence of the triangle at $2,950 will present significant resistance for sellers.

On the other hand, if buyers re-enter the market, Gold could revisit its record high of $3,058, provided they regain their momentum. This would then pave the way for a potential test of the triangle target set at $3,080.

From a technical perspective, the price of Gold continues to uphold its 'buy-the-dips' reputation following a confirmed breakout from the ascending triangle earlier this month.

Nevertheless, with the 14-day Relative Strength Index (RSI) currently trending downward, a further price retracement seems likely. However, as long as the RSI remains above the midpoint, any declines in Gold's price are expected to attract buying interest swiftly.

Should the recent downward movement extend, Gold may test the low of $3,000 reached on Friday, with the previous week's low of $2,982 also coming into play if that level is breached.

Further down, the 21-day Simple Moving Average (SMA) and the support confluence of the triangle at $2,950 will present significant resistance for sellers.

On the other hand, if buyers re-enter the market, Gold could revisit its record high of $3,058, provided they regain their momentum. This would then pave the way for a potential test of the triangle target set at $3,080.