[Bitop Market Review] Gold Price Analysis on April 25, 2024
Strengthening US Dollar Leads to Gold Price Decline, Today’s Gold Market Analysis!
During the early Asian trading session on Thursday (April 25th), gold continued its downward trend after experiencing its largest single-day drop in nearly two years. Influenced by reduced geopolitical risks and a strengthening US dollar, gold prices sharply retreated from recent highs. Additionally, the possibility of the Federal Reserve, led by Chairman Powell, maintaining relatively high interest rates added pressure to gold prices.
Ahead of tonight’s release of US GDP and initial jobless claims data for the first quarter, some bulls have taken profit to mitigate risks. Moreover, the US March PCE data will be released on Friday, which is closely monitored by the Federal Reserve. Previously released March consumer price inflation data exceeded estimates, weakening expectations of interest rate cuts.
From the perspective of the daily gold chart, today’s trend leans towards bearish. The gold daily candle shows two consecutive bearish candles, with a decline of 90 points. Meanwhile, the Bollinger Bands on the hourly and 4-hour charts show a downward divergence trend, with the SAR parabolic indicator releasing a bearish signal. In addition, the MACD indicators for both periods show increasing green momentum bars, while the daily MACD indicator has also turned into green bars gradually increasing in volume. These signs indicate a bearish trend for today.
In terms of support, it is important to note that the support points formed by the lower Bollinger Bands on the hourly chart and the lower error bands on the 4-hour chart coincide around the 2290 level, with the lower error band on the hourly chart positioned around the 2283 level. If these support levels are broken, the focus will shift directly to the defensive support range of 2265–2260. Overall, the recommended gold operation for today is primarily shorting on rebounds, with buying on pullbacks as secondary strategies. Short-term resistance above is around the 2332–2337 level, while short-term support below is around the 2300–2295 level.
Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.
