Key Takeaways:

• Gold prices drop to $3,310 after reaching a midweek peak near $3,500.
• Reports suggest China may reduce tariffs on U.S. imports, lifting market sentiment.
• Trump confirms talks with Beijing are ongoing, despite China’s earlier denials.
• Gold-to-silver ratio hits a 30-year high, excluding pandemic anomalies.

Gold took a sharp turn lower late this week, falling from its record-setting high of $3,500 to trade around the $3,296–$3,310 zone. The move marks a significant reversal, as markets shift their focus from central bank fears to signs of improved U.S.–China trade relations.

Safe-haven interest cooled after news emerged that Beijing may ease tariffs on U.S. imports. This sentiment shift followed President Trump’s remarks that negotiations with China remain active—despite Beijing’s prior denial of any formal discussions.

🌐 Macro Environment: Risk Appetite Returns

The possibility of reduced trade tensions reignited optimism in broader markets. Risk assets like equities found support, while traditional safe-havens such as gold saw outflows.

The U.S. dollar strengthened slightly, and Treasury yields stabilised—adding pressure to bullion. Earlier in the week, fears around Fed policy direction and Trump’s public criticism of the central bank had briefly pushed gold to historic highs.

However, the emerging narrative now favours tariff relief and reduced geopolitical risk—two elements that tend to limit gold’s upside in the short term.

📉 Technical Picture: Bears Regain Control

Technically, gold (XAUUSD) has lost its upward momentum. After testing a high at $3,370.77, sellers stepped in and drove prices down to a low near $3,287.20.

🖼️ Chart: Gold loses ground after failing to hold above 3370 – as seen on the VT Markets app

The MACD indicator has turned decisively bearish, showing a widening negative histogram and a clear divergence between the MACD and signal lines. Moving averages (5, 10, and 30) are sloping downward, confirming a short-term bearish structure.

If buyers fail to reclaim the $3,305–$3,315 zone, gold could be headed for another test of the April 24 support at $3,260.27.

Picture: Gold breaks lower after a failed push to 3370, with bears tightening their grip as momentum flips decisively south, as seen on the VT Markets app

🛡️ Outlook: Gold’s Safe-Haven Appeal Tested

Despite today’s pullback, gold still ranks as one of 2025’s top-performing assets—supported by persistent macro uncertainty, central bank demand, and volatile monetary policy.

However, near-term gains may remain capped unless new risks emerge or economic data unexpectedly disappoints. With key inflation figures due next week, traders may continue to favour a risk-on stance—at least temporarily.

Gold’s current correction offers a critical test: Will safe-haven demand return if volatility resurfaces? Or will improved diplomacy and economic data keep pressure on the metal?

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