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25 July 2025,05:59

Daily Market Analysis

Gold Slips as Trade Deal Hopes Undermine Safe-Haven Demand

25 July 2025, 05:59

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Key Takeaways:

*Global risk sentiment lifted by easing U.S. tariff threats and progress on trade deals with Japan and the EU.

*President Trump signals flexibility on tariffs, spurring hope for broader trade negotiations.

*Safe-haven demand fades; gold pulls back amid rotation into risk assets.

Market Summary:

Gold prices declined as risk sentiment improved across global markets, driven by optimism over potential trade deals between the United States and several key trading partners. President Trump announced a reduction of proposed tariffs on Japan—from 25% to 15%—in exchange for the country removing restrictions on some U.S. products and supporting a $550 billion investment initiative.

Negotiations with the European Union, South Korea, and India are also ongoing, as those nations seek to secure agreements before heightened tariffs take effect. Trump emphasized that he is open to reduced tariffs for countries that increase access to American businesses, reinforcing a positive tone for trade diplomacy.

These developments reduced investor appetite for safe-haven assets. As optimism returned to the market, capital rotated out of gold, leading to a pullback in prices.

Technical Analysis

GOLD, H4:

Gold remains under selling pressure, currently hovering near a key support level at 3385.00. The MACD has confirmed a bearish crossover below the signal line, indicating rising downside momentum. 

Simultaneously, the RSI has declined from overbought territory and now trends below the 50 midline, signaling fading bullish strength. A decisive break below 3385.00 could extend the downside toward the next support at 3340.00. 

On the other hand, if the support holds, we may see a technical rebound toward 3425.00 and potentially 3460.00, especially if risk sentiment shifts again.

Resistance Levels: 3425.00, 3460.00
Support Levels: 3385.00, 3340.00

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