Gold, silver, and platinum face correction as U.S. dollar uptick pressures safe-haven assets
Precious metals face bearish pressure
The precious metals market has encountered some headwinds this week, despite an overall bullish trend in recent weeks. Gold, silver, and platinum have all seen price action that suggests a correction, driven by shifting macroeconomics.
Gold opened the week strong, peaking at $3,500 per ounce, a historic level. However, after this initial surge, the precious metal experienced consistent downward pressure. By Friday, April 25, gold had opened near $3,350, briefly rising to $3,370 before reversing and dipping below the previous day's low at $3,288. As of the European session, gold was trading around $3,300, reflecting a 1.3% loss for the day and a 0.7% weekly loss. The combination of a modest uptick in the U.S. dollar and easing tensions between the U.S. and China seems to have turned investor attention away from safe-haven assets, contributing to gold’s pullback.
Gold, Silver, Platinum price dynamics (April 2025). Source: MT4
Silver's bullish momentum in April has stalled this week, despite marking its third consecutive week of upward price action. Since midweek, silver has consolidated between $33.70 and $33.15. On Friday, April 25, silver opened at $33.56, briefly reaching $33.70 before forming a double-top and falling 1.3% to $33.20. By the European session, silver was trading around $33.42, down 0.4% for the day. A break above $33.70 could see silver target $34, but if the consolidation continues, the $32.75 support level may offer a buffer against further declines.
Platinum retreats from $980 resistance, 20-day and 50-day EMAs hold key support
Platinum, like gold, has also faced a bearish week. Despite multiple attempts to break above the Fibonacci 0.786% resistance level near $980, platinum has failed to sustain any significant gains. On Friday, April 25, platinum experienced a 1.2% drop and is now retesting its 20-day and 50-day moving averages, which have provided support throughout the week. However, if platinum breaks below these moving averages, it could signal further downside in the coming week. The next key support for platinum is seen around $950, which may provide a buffer for any further declines.
In conclusion, precious metals are facing a corrective phase, influenced by both technical resistance levels and a changing macroeconomic environment. While near-term support levels may cushion further declines, any sustained strength in the U.S. dollar and positive global sentiment could keep pressure on the precious metals complex, potentially leading to more downside in the coming weeks.
Gold fell 6.7% following profit-taking after a surge to $3,500, with support at $3,260. This move was triggered by optimism over U.S.-China trade talks, leading Chinese investors to sell.
