Gold plummets amid dollar recovery as silver and platinum diverge on short-term gains
Gold drops to $3,292 as dollar rebounds and Fed fears ease.
Precious metals started the week on contrasting paths, as the U.S. dollar recovery prompted weakness in gold, while silver and platinum diverged to the upside.
Gold initially rallied to a record high of $3,500 early in the week, but momentum stalled. The metal reversed sharply, closing Tuesday below the $3,400 handle.
By mid-European hours on Wednesday, it had slipped further to a three-day low of $3,292, marking a 0.6% drop for the day. Technical charts reflect the increasing downside pressure. The 1-hour chart printed a bearish crossover between the 20 and 50 EMA during the Asian session, reinforcing short-term selling bias.
Gold, Silver, Platinum price dynamics (April 2025). Source: MT4
This weakness in gold coincides with renewed dollar strength after U.S. President Trump moved to ease market concerns over Federal Reserve independence and U.S.-China trade tensions. Trump clarified he had no plans to remove Fed Chair Powell and hinted at possible tariff reductions, sparking a rebound in the dollar. The greenback's strength trimmed the appeal of non-yielding assets like gold, contributing to the metal’s retreat.
Silver and platinum post gain despite gold loss and dollar recovery
Silver, in contrast, is showing resilience. It is currently trading higher for the session, up 1.9% to $32.90. Although still trapped in a six-day consolidation between $33.12 and $32.08, the 4-hour chart shows persistent support from the 20 and 50 EMAs, which have been trending higher since last week. Early in the Asian session today, silver retested the range support but bounced up to 32.90, suggesting buyers are strongly defending the zone. A break above the range resistance at $33.12 may pave the way for a test of the $34.00 psychological level.
Platinum is also showing resilience as it continues to push toward the $970 resistance. The metal is up nearly 1% in the European sessions. Despite several failed attempts to close above 970 over the past four sessions, bullish RSI readings across multiple timeframes suggest a potential bullish breakout. If platinum clears this resistance, it could target the 1000 psychological level, marking its third consecutive bullish week and indicating sustained buying interest.
In conclusion, as dollar policy and tariff expectations recalibrate, price action in precious metals is diverging. While gold responds directly to macro headwinds, silver and platinum are challenging resistance levels, hinting at potential breakout plays if external pressures stabilize.
Gold surged to $3,500 as political pressure on the Fed and dollar weakness drove safe-haven demand. It later eased to $3,465, holding a strong 1.2% gain during Tuesday European hours.
