Over the past 24 hours, spot gold extended its rally, hitting fresh record highs. Based on market data, gold opened with a gap higher during the early Asian session on April 22, quickly surging to a peak of $3,473.10 before easing slightly to end the day at $3,468.80—a 1.32% gain from the previous session. The continued strength in gold prices was supported by escalating U.S.-China trade tensions, a weaker U.S. dollar, and strong technical buying.
The driving force behind the bullish momentum lies in rising geopolitical risks. On Monday, President Trump announced steep tariffs—up to 104%—on critical mineral imports from China, including rare earths, lithium, and cobalt. The policy took immediate effect. In response, China declared it would “take firm countermeasures,” sparking fears of renewed disruptions across global supply chains. The resulting spike in risk aversion further fueled demand for gold as a safe haven.
Adding to the upward pressure on gold, the U.S. dollar came under strain. The U.S. Dollar Index dropped 0.8% on Monday, falling below the key technical support at 100.50 and hitting a three-year low. Contributing to the dollar’s weakness were a surprise rate cut by the European Central Bank and unexpectedly soft industrial production data out of the U.S. for March. These developments raised expectations for a more dovish Federal Reserve, thereby increasing gold’s appeal as a non-interest-bearing asset.
From a technical perspective, gold’s breakout above the key resistance level at $3,386 triggered stop-loss orders and systematic buying. Short-term moving averages formed a “golden cross” pattern, while the MACD indicator continues to gain strength—both signs pointing to a sustained uptrend. While the Relative Strength Index (RSI) has entered overbought territory, it has yet to show signs of divergence or waning momentum.
Market watchers note that if gold prices can stabilize above the $3,440 level, the door remains open for a push toward the psychological $3,500 mark. On the downside, any short-term profit-taking could see support tested around $3,385.
Looking ahead, two potential catalysts are on investors’ radar. First, the U.S. will release March retail sales data on April 23. A stronger-than-expected figure could give the dollar a short-term boost and weigh on gold. Second, if China unveils additional retaliatory measures—especially any restrictions on rare earth exports—the resulting rise in risk aversion could again send gold prices higher.
As for trading strategy, short-term traders may consider buying on dips between $3,430 and $3,450, with a stop-loss set below $3,410. The initial upside target would be $3,490. For medium- to long-term positioning, a confirmed breakout above $3,500 would likely signal the start of a new leg higher, with an intermediate target of $3,600.
(This article is for informational purposes only and does not constitute investment advice. Please assess risk and make decisions prudently.)