Gold prices struggled to extend Thursday’s sharp rebound from the $3,120 level — the lowest since April 10 — and faced renewed selling pressure during Friday’s Asian session. A key factor limiting further upside is the recent 90-day trade truce between the US and China, which has eased tensions in global markets and reduced demand for safe-haven assets like gold.
Meanwhile, recent US macroeconomic data signaled persistent inflationary pressures, reinforcing expectations of continued policy easing by the Federal Reserve. This has led to a further drop in US Treasury yields, weakening the US Dollar and providing some support to gold, which offers no yield.
The trade developments have not been limited to China. US President Trump also pointed to ongoing negotiations with India, Japan, and South Korea, signaling broader diplomatic efforts that have generally calmed market fears — another reason gold’s recovery has stalled.
Gold’s rebound from its one-month low has begun to lose momentum near the 200-period Moving Average on the 4-hour chart, currently around the $3,258 level. Despite Thursday’s recovery, momentum indicators remain subdued, with the Stochastics Oscillator at 37 and the Relative Strength Index (RSI) at 42 on the daily chart — both reflecting lingering bearish sentiment.
Given this setup, a cautious approach is warranted. A sustained move above the $3,258 zone, backed by stronger buying momentum, would be needed to confirm that the recent downtrend has bottomed out. Until then, fresh bullish positions may be premature.
Silver (XAG/USD) rebounded toward the $32.50 mark, supported by a strong recovery in gold, which helped lift sentiment across the precious metals space. However, the technical outlook for silver remains largely unchanged, as the price continues to consolidate within a well-defined range.
The metal is currently trading between key support at $31.50–$31.00 and resistance at $33.00–$33.50. A decisive breakout above this resistance zone could trigger fresh buying interest, potentially propelling the price toward the seven-month high of $34.59, last reached on March 28.
Momentum indicators suggest a neutral-to-cautious tone, with the Stochastics Oscillator at 38 and the Relative Strength Index (RSI) at 48 — both hovering near mid-range levels and indicating a lack of strong directional bias in the short term.
Until a breakout occurs on either side of the current range, silver is likely to remain in consolidation mode, with traders awaiting clearer signals for the next directional move.
In the ever-changing and often complex landscape of the bullion markets, staying informed through a combination of fundamental and technical analysis is essential for making sound investment decisions. This report aims to present a balanced perspective, offering insights that help investors effectively navigate the dynamics of gold and silver trading.