Gold, silver, and platinum retreat further as U.S. dollar strengthens on Fed and trade optimism
Metals lose weekly gains
Precious metals have lost upward momentum midweek as a stronger U.S. dollar driven by Fed policy expectations and surprise trade optimism pressured prices across the board. While gold, silver, and platinum had opened the week on a strong footing, their rallies are now fading under renewed dollar strength.
Gold led the early-week advance, surging above last week’s high to touch $3,435 per ounce just 1.9% shy of its record peak at $3,500. This move was supported by bullish sentiment and broader risk aversion before Federal Reserve Chair Jerome Powell dampened hopes for imminent rate cuts. His remarks, alongside a trade announcement tease from President Trump, lifted the dollar index, triggering a shift in flows out of metals and into the greenback.
Gold, silver and platinum price dynamics (April - May 2025). Source: Tradingview
Since then, gold has reversed over half its weekly gains. Thursday’s trading saw a drop below previous support levels at $3,360 and $3,323, as the price reached a three-day low at $3,321. Although a mild rebound has lifted gold to $3,340 in the European session, it is still down 0.7% on the day. Importantly, the declining volume on the 4-hour chart suggests weakening downside momentum. If losses deepen, the rising 20-day EMA around $3,290–$3,300 offers near-term support.
Silver weakens on bearish engulfing candle while platinum steadies above 20 EMA
Silver followed a similar path. It peaked earlier in the week at $33.25 within a known supply zone, but Wednesday's sharp reversal formed a bearish engulfing pattern and dragged prices to $32.24. The selloff continued into Thursday's European session, pushing silver below the prior day’s low. The RSI on both daily and 4-hour charts has turned negative, implying sustained bearish pressure. If this trajectory persists, silver may revisit this week’s low and possibly slide toward the $31.80 support.
Platinum, on the other hand, has been more stable. After falling 1% on Wednesday, it found solid support near $975.3, reinforced by the 4-hour 20 EMA. Thursday’s action showed a brief rebound in Asia followed by a retest of the support zone in European session. Price is holding around $977, while RSI remains neutral, suggesting short-term consolidation below resistance at $990.1. Notably, platinum still retains a weekly gain of 2%, making it the most resilient of the three.
In summary, dollar strength has reversed bullish momentum across metals, pushing gold and silver into retracement zones while keeping platinum range-bound. Further moves will depend on whether the dollar extends above key resistance or loses steam near its psychological barrier.
Gold and silver pulled back as traders repositioned before the Fed decision and U.S.-China trade talks. Platinum held firm, showing stronger price support despite the macro uncertainty.
