Gold is currently consolidating within a narrow, downward-sloping range, following a powerful rally that peaked last month at a record high of USD 3,500. The metal’s recent correction coincided with former U.S. President Donald Trump’s decision to reverse certain aggressive trade tariffs—measures that had previously contributed to market turbulence. The policy shift is widely viewed as an effort to reduce economic uncertainty amid signs of slowing growth.
At present, gold lacks a clear directional trend, reflecting mixed macroeconomic indicators and cautious investor behavior. Market participants are closely monitoring the potential fallout from Trump’s evolving trade stance. Analysts generally expect the broader economic impact to be negative—a factor that could ultimately support gold prices, especially under the specter of stagflation, where inflation rises despite stagnant economic growth.
Forthcoming trade agreements, particularly with key partners in Europe and Asia, may offset some of the negative economic effects and temper demand for safe-haven assets. However, persistent concerns remain, notably the expanding U.S. budget deficit. Long-term fiscal sustainability remains in question. Combined with stagflation risks and continued central bank buying, these dynamics are likely to maintain investor interest in gold and other precious metals, including silver and platinum.
Technical indicators point to important resistance zones for gold. The metal is currently capped at USD 3,347, with stronger resistance at USD 3,355, aligning with the 0.618 Fibonacci retracement level of its recent decline. These levels form a crucial resistance zone that must be breached for bullish momentum to resume. On the downside, support is seen at USD 3,272 and USD 3,244.
Silver continues to trade within a broad horizontal range, finding solid support near USD 32. Resistance has repeatedly held around USD 33.70, establishing this as a critical breakout level. A successful move above could open the path toward retesting the October high of USD 34.90, the highest in 12 years.
The gold-silver ratio—currently around 100 ounces of silver per ounce of gold—remains an important metric for assessing relative strength. During April’s volatility, the ratio spiked from 90 to over 105, reflecting silver’s sharper correction. However, it has since moderated, aided by improving trade sentiment following a truce between the U.S. and China. A sustained drop below 98 could indicate growing investor preference for silver over gold.
Platinum, often overshadowed by gold and silver, is showing renewed strength. Once trading near parity with gold, platinum’s value has lagged for over a decade. That gap widened to a record gold-to-platinum ratio of 3.6-to-1 last month. However, a recent technical breakout has revitalized the metal, fueled by expectations of a supply deficit.
According to the World Platinum Investment Council’s latest quarterly report, 2025 is expected to mark the third straight year of supply shortages, with demand projected to exceed supply by nearly one million troy ounces. The shortfall is driven by growing demand in the automotive sector and a sharp rise in Chinese interest in platinum jewelry, bars, and coins. In April, China reported its highest level of platinum imports in a year, attracted by the metal’s price stability and significant discount to gold.
Technically, platinum recently broke above USD 1,025, surpassing a long-term descending trendline dating back to its 2008 high of USD 2,300. It has since surged to a two-year high near USD 1,100. This breakout has drawn strong interest from momentum-driven investors, with holdings in platinum ETFs increasing by 74,000 ounces to a three-month high.
As the three major precious metals approach key resistance levels, the market faces a defining moment. Whether these assets break out or break down will likely depend on upcoming economic data, policy shifts, and evolving investor sentiment in a still-uncertain global landscape.
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