Gold prices fell slightly on Friday, retreating from Thursday’s record high of $3,057.59 an ounce, as a stronger U.S. dollar spurred profit-taking. Despite this decline, gold is still on track for a third consecutive weekly gain, up 1.6% so far this week.
The gold/USD pair is trading at $3,032.82, down $11.84 or -0.39%.
The US dollar index (DXY) rose 0.2% on Friday, weighing on dollar-denominated gold. The appreciation of the dollar has increased the cost of bullion for foreign investors, adding to the pressure on gold’s recent massive rally.
However, the broader uptrend remains in place after gold rose to all-time highs this week, driven by geopolitical tensions, inflation concerns and safe-haven demand. Gold has now hit 16 record highs recently, including four levels above $3,000.
The price of spot gold is witnessing a positive correction following its recent rally. The secondary support level is at $2,968.92, the midpoint between $2,880.25 and $3,057.59. A drop in this level may open the door to the support zone at USD$2,880.25.
A drop below this level could break through the 50-day EMA of USD$2,867.86, which is considered a key technical level that has supported the market since early January. However, given the prevailing uptrend, the declines in this region are likely to attract new buying interest.
Expectations of interest rate cuts and safe-haven demand provide fundamental support Investor expectations of a rate cut by the Federal Reserve continue to support the long-term bullish outlook. The decline from $3,057.59 reflects a natural profit-taking rather than a fundamental shift in sentiment.
Gold prices fall as profits are taken and the dollar rises
The Gold prices fell on Friday as the dollar strengthened and investors took profits after gold hit three consecutive historic highs this week, supported by safe-haven demand amid hopes of a rate cut by the Federal Reserve later this year.
Spot gold fell 0.5% to $3,030.81 an ounce as of 10:36 GMT. U.S. gold futures fell 0.2% to $3,037.70, Reuters reports.
Spot silver fell 1.5% to $33.0548 an ounce, platinum lost 0.5% to $979.75, and palladium lost 0.9% to $943.50. All three of these metals are heading for weekly losses.
In addition, concerns about the April 2 deadline for new U.S. tariffs, and continued global economic uncertainty keep safe-haven flows on gold strong. However, given the prevailing uptrend, the declines in this region are likely to attract new buying interest
The Federal Reserve has kept interest rates steady this week, with expectations of two 25 basis point cuts by the end of the year.
While actual demand from India and China remains weak, exchange-traded product flows (ETP) make up for this shortfall, providing a stable source of institutional buying.
Gold Price Forecast: Bullish Trend Continues Despite Short-Term Decline
The uptrend of gold remains structurally sound. The decline from $3,057.59 reflects a natural profit-taking rather than a fundamental shift in sentiment.
As long as the market remains above support zone between $2,867 and $2,880, the bulls are likely to remain dominant. Long-term outlook still favors higher gold prices, especially with safe-haven demand rising and monetary policy expectations tilted towards quantitative easing.
Gold prices in Vietnam continue to fall after highs
Gold prices in Vietnam continued to fall on Friday afternoon after sharp declines in the morning. The price of a gold barn from Saigon Jewelry Company fell to 97.7 million Vietnamese dong (US$3,818.27) per tael, down 1.2% from its morning level and 2.7% from its historic high of 100.4 million VND on Thursday.
The gold ring was priced at 97.3 million VND per tael, down 1.52% from its morning level and 3.4% from its peak of 100.7 million VND. The tile is equal to 37.5 grams or 1.2 ounces.
Gold prices globally were on track for gains for a third straight week on Friday, supported by the US Federal Reserve’s expectations of this year’s interest rate cuts, and safe-haven demand amid geopolitical and economic uncertainty.
Spot gold fell 0.5% to $3,028.77 an ounce, weighed down by a stronger U.S. dollar. U.S. XAU futures fell 0.3% to $3,035.70.
Bullion hit an all-time high of $3,057.21 an ounce on Thursday, and have risen about 1.5% so far this week.
Kelvin Wong, Senior Market Analyst for Asia Pacific at OANDA, said: “Gold is trading slightly lower in today’s Asian trading session due to the strength of the US dollar in all major currencies.”
A combination of factors, including tariff uncertainty, expectations of interest rate cuts, and renewed tensions in the Middle East, have pushed XAU to new highs this year, reaching 16 record highs, four of which are above the crucial $3,000 level.
This non-yielding metal, which is a hedge against geopolitical and economic turmoil, thrives in a low interest rate environment.
