Facts:
- GOLD halted declines in a 1:1 structure relative to the April 22 sell-off
- The gold-based contract has returned above the 50-day EMA
Recommendation:
Long position on GOLD at market price
- TP1: 3257
- SL: 3124
Opinion:
The recent geopolitical de-escalation, which supported demand for safe assets for many months, has recently worsened sentiment around GOLD. The reduction in tariffs from extremely high levels (125% → 10% and 145% → 30%) has a calming effect on financial markets, but it is still unclear how the tariff talks will ultimately end. Gold halted declines within the 50-day exponential moving average (blue line on the chart) and close to the lower limit of the 1:1 structure relative to the April 22 downward movement.
The published World Gold Council report for Q1 showed still solid demand from central banks, but slightly lower than in the last quarter of 2024. At the same time, however, demand from ETFs is accelerating significantly, which is the highest quarterly in 3 years
Based on the above arguments, we recommend taking a technical long position at the market price. At the same time, we recommend setting a stop loss order to minimize the risk of potential loss.
Source: xStation 5
The recommendation is based on a fundamental analysis of the gold market, its correlation with other financial markets, and technical chart analysis. Additionally, our decision was influenced by the latest political developments, including the high-level meeting between China and the U.S. over the weekend. Target levels were determined using classic support and resistance zones as well as Price Action analysis.
