22 October 2025,06:32
Daily Market Analysis New
22 October 2025, 06:32
Key Takeaways:
*Gold prices fell sharply after breaking below a double-top pattern, marking one of the steepest declines in recent weeks.
*U.S. President Donald Trump’s upbeat comments on relations with China boosted risk appetite, dampening safe-haven demand.
*Profit-Taking Pressure: Analysts see the current selloff as largely a technical correction following a prolonged rally.
Market Summary:
Gold prices tumbled aggressively at the start of the week, extending losses following a decisive break below the double-top pattern and key psychological levels. The move marked one of the metal’s most notable short-term corrections in recent weeks, driven by improving global risk appetite and renewed optimism surrounding U.S.–China trade dialogue.
Market sentiment shifted after President Donald Trump expressed confidence in reaching a “really fair and really great” trade agreement with China. The remarks came ahead of a scheduled meeting between U.S. and Chinese leaders at the APEC Summit in South Korea, where further clarity on bilateral trade progress is expected. Additionally, both delegations are set to make visits to Malaysia this week, adding to speculation about renewed trade cooperation and regional investment opportunities.
The improvement in trade tone prompted a rebound in the U.S. dollar, with investors reassessing risks to U.S. growth. The dollar’s strength, combined with optimism toward the global economy, has temporarily dampened the appeal of gold as a defensive hedge. However, analysts note that the recent selloff in gold is likely driven more by profit-taking and technical correction rather than a fundamental shift in outlook.
From a macroeconomic standpoint, the longer-term bias for gold remains underpinned by expectations of potential Federal Reserve rate cuts, lingering fiscal and political uncertainty in the U.S., and the impact of the ongoing government shutdown. Delays in key economic data releases may also limit clarity on short-term growth momentum, keeping investors focused on external drivers such as trade developments and central bank guidance.
Looking ahead, investors will closely monitor the evolution of the U.S.–China trade discussions and upcoming Fed policy decisions, which could shape both the direction of the dollar and broader sentiment toward non-yielding assets such as gold.
Technical Analysis
GOLD, H4:
Gold prices extended losses after breaking below a double-top formation and short-term uptrend line. The metal is currently testing a significant support area near 4,045.00, which has previously acted as a pivot zone for trend reversals.
The MACD indicator suggests easing bearish momentum, while the RSI has moved into oversold territory, indicating potential for short-term consolidation. Should downside momentum persist, a breakout below 4,045.00 could lead to a further test near 3,950.00. Conversely, a technical rebound could see prices retesting resistance levels around 4,120.00 and 4200.00.
Resistance Levels: 4135.00, 4200.00
Support Levels: 4045.00, 3950.00
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