The US dollar remains volatile at high levels, while gold has been under pressure and trading weakly for three consecutive days.

FX168 Finance News April 7—— Gold maintains a weak trajectory for the third consecutive day, pressured by a stronger US dollar and high interest rate expectations. Although geopolitical tensions continue to provide some support, the market focuses more on inflation and policy paths. In the short term, gold prices may remain in a weak and volatile pattern.

During the European session on Tuesday, spot gold continued its pullback, fluctuating within the previous trading range and overall presenting a

pattern. Although there is no clear sign of heavy volume on the downside, the overall market sentiment remains bearish.

From a macro perspective, the stronger dollar remains the primary factor weighing on gold. As the uncertainty in the Middle East intensifies, the US dollar, as a safe-haven asset, sees capital inflows, further strengthening its status as the global reserve currency. At the same time, the US economic data shows some resilience, especially with previously released robust non-farm payroll figures, further reinforcing market expectations for the Federal Reserve to maintain high interest rates, which continues to suppress gold.

Meanwhile, the resurgence of inflation expectations has become a key variable. Influenced by rising energy prices, the market generally anticipates a renewed surge in inflationary pressure. According to data from the US Institute for Supply Management, the services price index climbed to , noticeably higher than the previous value, indicating increasing cost pressures. This has further solidified expectations for rates to stay higher for longer, dampening the attractiveness of gold as a non-yielding asset.

From a geopolitical perspective, the situation around the Strait of Hormuz continues to ferment. US President Donald Trump has set a final deadline, demanding the reopening of passage, or otherwise will take tough measures. Although the market remains concerned about escalating conflicts, more safe-haven flows are moving into the US dollar rather than gold, limiting gold’s support.

In addition, rising crude oil prices also exert indirect pressure on gold. Higher energy prices not only push up inflation expectations but also strengthen the likelihood of central banks maintaining tight policy stances, making it difficult for gold to attract sustained buying.

From a technical standpoint, on the daily chart, gold has overall entered an adjustment phase, with repeated rebounds capped at previous resistance zones, indicating obvious selling pressure above. The short-term trend has shifted from strong to weak, structurally displaying a bearish, volatile pattern. If the price continues to operate below key resistance, the medium-term adjustment is likely to extend.

On the 4-hour chart, gold is trading within a downward structure, with prices persistently suppressed below the 200-period moving average, forming a clear downtrend. The current price is below this moving average, confirming the short-term bearish bias. The MACD indicator is operating below the zero axis, with its histogram maintaining negative values, indicating that bearish momentum persists but has not significantly increased; the RSI is around , located in a neutral to weak zone, suggesting a choppy downtrend phase.

In terms of key levels, initial upside resistance is at , corresponding to the 38.2% Fibonacci retracement. A breakout could see a further move towards the area (50% retracement). However, unless this zone and the 200-period moving average are broken, rebounds might still be considered short-selling opportunities. Support lies at , and a break below could target the area as the next target.


The core logic of the current gold market is “strong dollar + high interest rate expectations.” Although geopolitical tensions persist, the support for gold is noticeably weaker than before, with more funds flowing into US dollar assets. Rising inflation pressures and expectations for central bank tightening continue to weigh on gold. In the short term, without a breakout above key resistance, gold remains in an adjustment phase. It is expected to maintain a weak and volatile structure, with caution advised for further downside risks.