Gold prices strengthen as investors weigh tariff progress, Russia sanctions
2025-10-24 02:05:44
Spot gold fluctuated in a narrow range on Thursday (October 23), consolidating after a sharp pullback from its all-time high. Spot gold was trading around $4,133 an ounce, up slightly after two days of decline, as safe-haven demand remained supported by a combination of economic anxiety and geopolitical tensions.
The U.S.-China trade standoff remained a focus for investors, with reports that Washington was considering new export restrictions ahead of talks between the two countries.
Meanwhile, the US government shutdown, now in its fourth week, continues to weigh on market sentiment, while the prospect of further monetary easing by the Federal Reserve is also weighing on investor positioning as markets increasingly price in a 25 basis point rate cut at the Federal Open Market Committee (FOMC) meeting on October 29-30.
Traders also avoided making large directional bets ahead of Friday's U.S. Consumer Price Index (CPI) report. Meanwhile, a stronger dollar and a rebound in U.S. Treasury yields limited gold's upside, keeping prices largely range-bound.
Market drivers: Geopolitical uncertainty grows as US-China talks approach
China's Ministry of Commerce said on Thursday that Vice Premier He Lifeng will lead a delegation to Malaysia from October 24 to 27 for economic and trade talks with the United States, as agreed by both sides. The announcement confirmed that high-level discussions will begin on Friday.
The United States has announced new sanctions against Russia, targeting energy giants Rosneft and Lukoil. The measures are intended to curb Moscow's oil revenues and increase pressure on its war efforts.
The sanctions on Russia were imposed after President Trump and Russian President Vladimir Putin planned a summit in Budapest to discuss ending the conflict between Russia and Ukraine. Trump later told reporters at the White House on Wednesday that he had canceled the meeting. In response, former Russian President Dmitry Medvedev on Thursday accused the United States of "declaring war" on Russia.
Technical analysis: Spot gold remains in the range below $4,150
(Source of spot gold daily chart: Yihuitong)
Spot gold is consolidating in a range of $4,000 to $4,150 as traders await a new catalyst, possibly Friday's CPI report, for the next directional move.
On the upside, $4,150 remains an immediate resistance level, followed by $4,200, where the 50-period simple moving average (SMA) coincides with the previous breakout range. A decisive close above this level is needed to shift the short-term bias back in favor of buyers.
On the downside, the psychological level of $4,000 is a key support level - a key line of defense for bulls. A clear break below this level could expose gold to a deeper correction towards $3,950 or even $3,900.
Currently, the overall bias remains slightly bearish unless $4,200 is reclaimed. However, dip buyers appear to be active at the lower end of the range, suggesting that while a sharp sell-off looks unlikely, a prolonged consolidation phase cannot be ruled out after an excessive rally.
At 02:02 Beijing time, spot gold was quoted at US$4139.07 per ounce, up 1.00%.
The U.S.-China trade standoff remained a focus for investors, with reports that Washington was considering new export restrictions ahead of talks between the two countries.
Meanwhile, the US government shutdown, now in its fourth week, continues to weigh on market sentiment, while the prospect of further monetary easing by the Federal Reserve is also weighing on investor positioning as markets increasingly price in a 25 basis point rate cut at the Federal Open Market Committee (FOMC) meeting on October 29-30.
Traders also avoided making large directional bets ahead of Friday's U.S. Consumer Price Index (CPI) report. Meanwhile, a stronger dollar and a rebound in U.S. Treasury yields limited gold's upside, keeping prices largely range-bound.
Market drivers: Geopolitical uncertainty grows as US-China talks approach
China's Ministry of Commerce said on Thursday that Vice Premier He Lifeng will lead a delegation to Malaysia from October 24 to 27 for economic and trade talks with the United States, as agreed by both sides. The announcement confirmed that high-level discussions will begin on Friday.
The United States has announced new sanctions against Russia, targeting energy giants Rosneft and Lukoil. The measures are intended to curb Moscow's oil revenues and increase pressure on its war efforts.
The sanctions on Russia were imposed after President Trump and Russian President Vladimir Putin planned a summit in Budapest to discuss ending the conflict between Russia and Ukraine. Trump later told reporters at the White House on Wednesday that he had canceled the meeting. In response, former Russian President Dmitry Medvedev on Thursday accused the United States of "declaring war" on Russia.
Technical analysis: Spot gold remains in the range below $4,150
(Source of spot gold daily chart: Yihuitong)
Spot gold is consolidating in a range of $4,000 to $4,150 as traders await a new catalyst, possibly Friday's CPI report, for the next directional move.
On the upside, $4,150 remains an immediate resistance level, followed by $4,200, where the 50-period simple moving average (SMA) coincides with the previous breakout range. A decisive close above this level is needed to shift the short-term bias back in favor of buyers.
On the downside, the psychological level of $4,000 is a key support level - a key line of defense for bulls. A clear break below this level could expose gold to a deeper correction towards $3,950 or even $3,900.
Currently, the overall bias remains slightly bearish unless $4,200 is reclaimed. However, dip buyers appear to be active at the lower end of the range, suggesting that while a sharp sell-off looks unlikely, a prolonged consolidation phase cannot be ruled out after an excessive rally.
At 02:02 Beijing time, spot gold was quoted at US$4139.07 per ounce, up 1.00%.
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