GOLD Analysis: Gold Bulls Face a Big Test

Fundamental Analysis of GOLDGOLD Key Takeaways

• Short-term risk aversion cools down: The latest data from the World Gold Council shows that global physical gold ETFs attracted $11 billion in April, of which the monthly inflow in the Chinese market has exceeded the total in the first quarter of 2025. The cooling of market risk aversion is the main reason for the adjustment of gold prices. Gold prices still have an upward trend in the medium and long term, but the short-term upward momentum has weakened.
• Long-term gold prices are still bullish: US dollar assets are facing difficulties, and the safe haven ability of US Treasury and US dollar has declined, resulting in more scarce safe assets, which helps to increase the allocation value of gold. The uncertainty of the outlook for US stocks has increased, making non-US risk assets relatively more attractive.

Technical Analysis of GOLD

GOLD Daily Chart Insights

• Stochastic oscillator: After the indicator sends a short signal near the 50 median line, the market price is clearly in a downward trend. Although the short-term fast line indicator has entered the oversold area, the short trend is still dominant before a long signal is issued.
• Neckline was broken: The exchange rate yesterday was blocked near the long-short conversion line in the previous market, but because the gold price peaked and broke the neckline of $3,200, the short trend will most likely continue in the Asian session today, focusing on the support near the black 65-day moving average.

GOLD 2-hour Chart Analysis

• Stochastic oscillator: The fast line enters the oversold area, and there is a probability of a rebound in the short-term gold price. Especially after breaking the key support price yesterday, the Asian session will give priority to the short signal issued again after the gold price pulls back.
• Moving average trend: The black 65-period moving average also completely crosses the green 200-period moving average. Gold is about to usher in a deep adjustment or sideways fluctuation in the short term, and investors should not easily buy the bottom.

GOLD Pivot Indicator

• According to the trading central in Ultima Markets APP, the central price of the day is established at 3192,

• Bullish Scenario: Bullish sentiment prevails above 3192, first target 3220 , second target 3242;

• Bearish Outlook: In a bearish scenario below 3192, first target 3130, second target 3100.

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