In early Asian trading on Friday (May 9), spot gold saw a slight rebound, trading around $3,319.75 per ounce at the time of writing, supported by dip-buying. On Thursday, gold extended its decline by nearly 2%, with spot gold plunging to an intraday low of $3,288.72, down 1.7%, and closing at $3,305.70. The drop followed U.S. President Trump's announcement of a trade agreement with the United Kingdom, raising hopes for similar deals with other countries. This eased market tensions and reduced safe-haven demand for gold. The stronger U.S. dollar, rising equities, and higher Treasury yields also pressured gold prices.

So far this week, the Federal Reserve held interest rates steady. However, Powell’s remarks and the policy statement were more hawkish than expected. Additionally, with several countries projecting progress in trade negotiations and a joint China-Russia statement pointing to greater global stability, trade-related risk concerns—key drivers of safe-haven flows into gold—have weakened. As a result, gold has continued to decline. In the short term, lacking further bullish catalysts, gold is likely to consolidate within a range. The market’s sharp rebound followed by a swift drop suggests growing divergence among traders. Focus remains on whether gold can retest its all-time highs; a strong breakout would open further upside potential, while failure may trigger deeper corrections. A cautious approach is advised.

According to Bitop’s market analysis team, there are still underlying bullish supports. Tariff-related policies remain in effect, albeit reduced, and expectations of slow or negative global economic growth persist. Moreover, geopolitical tensions—particularly in regions like India and Pakistan—still pose escalation risks. The Fed is also expected to cut rates multiple times this year, and gold remains in a technical bull market with no clear signs of trend reversal. Should major economies reach further agreements, however, upside resistance for gold will increase, potentially pushing prices down to around $3,200. Traders are advised to closely follow developments in global trade and speeches from key Fed officials, including upcoming remarks by Fed Governor Barr on AI and the labor market.

On the daily chart, after a steady rally earlier this week, gold prices briefly approached the $3,400 level. The current structure suggests a bullish short-term outlook, with moving averages forming a golden cross, providing near-term support. However, MACD correction needs to be watched. If the current steady upward rhythm continues, the market may break higher next week.

On the 4-hour chart, despite a correction after the Fed’s relatively cautious stance, gold has found strong support near the $3,300 level—a key pivot zone. Attention should be paid to the support from the moving average cluster, especially the 20-period MA. However, there's a risk of a MACD bearish crossover near the zero line. Therefore, the preferred strategy for now is to wait for a pullback before initiating long positions.

For today's short-term gold trading strategy, it is recommended to focus primarily on selling on rallies, with buying on dips as a secondary approach. In the short term, key resistance is seen in the $3,323–$3,340 range, while key support lies in the $3,289–$3,240 range.

Gold Resistance Levels: $3,315-$3,330-$3,340

Gold Support Levels: $3,300-$3,290-$3,280

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.