Gold, silver, and platinum drop sharply as U.S.-China tariff truce lifts DXY and U.S. yields
Gold tumbles 3% as tariff truce shifts focus to dollar assets.
Precious metals opened the week under heavy pressure as traders reacted to the 90-day tariff pause between the U.S. and China.
The temporary agreement, announced Monday, has triggered a shift into dollar-denominated assets, sending the dollar index and U.S. Treasury yields sharply higher. That shift in sentiment has weighed heavily on safe-haven metals, particularly gold and silver.
Gold has seen the steepest losses, falling over 3% since the Asian session. After opening near $3,320, prices tumbled to an intraday low of $3,210 in the European session, bringing gold closer to the key $3,200 support zone where a double bottom pattern formed earlier this month. Today’s move has erased all of last week’s gains and flipped the daily RSI from bullish back into bearish territory. On a broader view, the current decline began in the middle of last week and has continued under decreasing volume—a sign that the selling pressure may not be sustained. Still, there’s a possibility that price could first sweep through liquidity beneath the $3,200 level before buyers begin to step in.
Bearish RSI grips silver and softens platinum’s edge as both metals face downside pressure
Silver has followed a similar path, dropping nearly 2% on the day. The metal broke below the previous week’s low and slipped under the $32.20 support, which is now acting as resistance. It touched a new 7-day low at $31.86 and currently trades near $31.96. Silver is now approaching the $31.80 support, a level that might pause the decline. However, both the 4-hour and daily RSI indicators are lodged in bearish territory, suggesting further weakness could follow unless price finds support quickly.
Gold, silver and platinum price dynamics (April - May 2025). Source: TradingView
Platinum, on the other hand, started the day stronger. It had closed last week near the $1,000 psychological mark and even reached $1,005 during the early session today. But the price has since fallen nearly 2%, reaching a low of $977.50. Unlike gold and silver, platinum’s pullback has only erased Friday’s gain. More importantly, the daily RSI for platinum is still in bullish territory, suggesting that the decline might find a floor near the $975.30 support level.
In summary, while the broader move away from metals reflects the risk-on tone following the tariff relief, platinum appears more resilient for now. All eyes are now on whether gold will defend the $3,200 level or slip further to attract fresh buyers.
Gold and silver rose after the weak U.S.-UK trade deal raised concerns ahead of the U.S.-China summit. The pullback in the U.S. dollar helped lift precious metal prices during early European trading.
