Gold prices surged past the $3,500 mark on Tuesday, April 22, maintaining an uninterrupted uptrend that has seen the precious metal scale new record highs. The ongoing fears surrounding U.S. President Donald Trump’s tariffs and the escalating trade war with China continue to drive demand for gold, traditionally viewed as a safe-haven asset in times of geopolitical and economic uncertainty. Along with concerns about global economic growth, the U.S. Dollar’s recent slump to a three-year low has further fueled gold’s upward momentum.
Trump’s unpredictable trade policies have continued to weaken investor confidence in the U.S. economy. His latest attack on Federal Reserve Chairman Jerome Powell, accusing him of not cutting interest rates quickly enough, has raised concerns about the independence of the Federal Reserve. These developments, coupled with expectations that the Fed may resume its rate-cutting cycle, have added downward pressure on the U.S. Dollar, providing a significant lift to gold prices. Investors are betting on more aggressive policy easing by the central bank, which has made the greenback less attractive and bolstered demand for the safe-haven yellow metal.
The CME Group’s FedWatch Tool has shown that traders are now pricing in the possibility of a 25-basis point rate cut by June, with further reductions expected in 2025. The Federal Reserve’s shifting stance, combined with Trump’s ongoing threats against Powell, has created uncertainty surrounding U.S. monetary policy, further diminishing confidence in the dollar.
On the geopolitical front, Russia’s missile and drone attacks on Ukraine after a brief ceasefire have added to the global instability, prompting traders to seek refuge in gold. Meanwhile, traders are also awaiting the Richmond Manufacturing Index data from the U.S. and speeches from Federal Open Market Committee (FOMC) members, which will provide further insight into the Fed’s monetary policy direction.
Technically, however, the gold rally is showing signs of overheating. The Relative Strength Index (RSI) remains well above the 70-mark, indicating overbought conditions in the short term. As a result, investors may want to exercise caution before making new bullish bets. Some near-term consolidation or a modest pullback may be needed before the next leg up in the gold price rally.
Support levels are expected around the $3,425-$3,423 zone, with further support at $3,400. A decisive break below these levels could prompt technical selling, pushing the price down toward the $3,358-$3,357 region. If this level is broken, deeper losses could follow, with $3,344 as the next significant support level.
Despite these technical concerns, gold’s continued surge reflects broader market fears of escalating geopolitical risks and doubts about U.S. economic policies. The current trend suggests that gold will remain a key asset for investors seeking protection in the face of rising uncertainty.
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