Weekly Analysis List
XAU/USD Weekly Analysis
4/21/25
Market Overview
As of April 21, 2025, gold (XAU/USD) has reached a new all-time high, trading near $3,375 per ounce in early Asian markets. This increase is attributed to escalating U.S.-China trade tensions, a weakening U.S. dollar, and increased investor demand for safe-haven assets amid global economic uncertainty.
Market Overview
Current Price: Approximately $3,375 per ounce
Recent High: $3,357.40 per ounce, achieving a new record
Key Drivers:
Trade Tensions: U.S. President Donald Trump's intensified tariffs on Chinese imports have heightened market volatility
Federal Reserve's Stance: Chair Jerome Powell indicated that tariffs could lead to slower economic growth and heightened inflation, prompting investors to seek refuge in gold
Central Bank Demand: China's policy shift allowing insurers to allocate up to 1% of assets to gold could result in significant annual demand, equivalent to about 25% of global central bank purchases
Weaker U.S. Dollar: The dollar has hit a three-year low, enhancing gold's appeal to foreign investors
Technical Analysis
Trend: Strong bullish momentum continues
Support Levels: $3,280, $3,220, and $3,160 per ounce
Resistance Levels: $3,368, $3,389, and $3,440 per ounce
Indicators:
Moving Averages: Bullish crossover observed
RSI: Indicates overbought conditions, suggesting potential for short-term correction
Conclusion
Forecasts & Outlook
*Short-Term: Analysts anticipate a possible pullback to test support around $3,205, followed by a continuation of the uptrend targeting levels above $3,650
*Medium-Term: Major financial institutions have raised their gold price forecasts:
*Goldman Sachs: Predicts prices could reach between $3,650 to $3,950, and potentially as high as $4,500 if recession risks materialize
*UBS and Bank of America: Both have set a 2025 gold price target of $3,500
*Citi Research: Increased its three-month gold price target to $3,500 per ounce
Conclusion
Gold's rally is supported by strong fundamental factors, including geopolitical tensions, central bank demand, and a weakening U.S. dollar. While technical indicators suggest potential for short-term corrections, the overall outlook remains bullish. Traders should monitor key support and resistance levels and stay informed on geopolitical developments that could impact gold prices.