Gold prices could remain under pressure

7 Nisan 2025

Markets analysis on behalf of Christopher Tahir – Senior Market Strategist at Exness

 

Gold prices could remain under pressure at the start of the week after they fell to their lowest level in more than three weeks. Amid a broader market sell-off, investors could continue to take profits and liquidate positions to cover losses and margin calls in other asset classes.

Although gold typically benefits from uncertainty, the scale of the sell-off led to short-term weakness in bullion as investors could seek liquidity. Still, the metal remains underpinned by ongoing central bank purchases, including China’s fifth consecutive month of purchases.

Geopolitical risks also remain elevated. In the Middle East, Israel resumed operations in Gaza. Meanwhile, in Eastern Europe, Russian attacks have reinforced doubts over any imminent de-escalation, which could help sustain gold’s safe-haven appeal.

Additionally, escalating trade tensions and a potential resurgence in inflation could bolster gold’s appeal, with its role as a traditional hedge against inflation. Traders could also continue to monitor any comments from the US administration.

 

Zaid Barem / ymm