Gold prices rose after hitting a one-week low on bargain hunting.
2026-04-23 02:19:31
Gold prices rose during the US trading session on Wednesday (April 22), reaching $4,736.35 per ounce, a gain of 0.35%. This followed a drop to a more than one-week low in the previous session, with investors buying on dips while awaiting a possible resumption of US-Iran peace talks.
U.S. Treasury yields declined mid-week, with investors rushing to buy precious metals after Tuesday's price drop, a phenomenon evident in both the gold and silver markets. However, gold lost its earlier gains when the 10-year U.S. Treasury yield fell back to 4.298%. Meanwhile, the dollar strengthened. The dollar index rose 0.17% to 98.57, its highest level in seven days.
High oil prices are the main reason why gold prices cannot rise sustainably. With increasing inflationary pressures, the Federal Reserve is more likely to maintain high interest rates for an extended period. Money markets expect the Fed to keep rates unchanged in 2026, while speculators anticipate the first rate cut in July 2027.
Geopolitically, US-Iran negotiations have stalled due to the US blockade of ships flying the Iranian flag. Tehran is escalating the conflict: the Iranian Islamic Revolutionary Guard Corps seized three cargo ships in the Strait of Hormuz, demanding the US lift the blockade. US President Donald Trump has decided to extend the ceasefire while awaiting a proposal from Tehran. Reports indicate internal divisions within the Iranian leadership. The ceasefire agreement between Israel and Lebanon is also under pressure following the Israeli drone strike that killed at least three people.
Following Trump's statement, hopes for a resolution to the Strait of Hormuz issue led to a slight rebound in gold prices. However, Bart Melek, global head of commodities strategy at TD Securities, stated that the situation remains highly volatile and uncertain.
Ahead of the release of US economic data, Thursday will see the release of unemployment claims data and the S&P Global PMI for April.
Technical Analysis: Short sellers have entered the market, targeting below $4700.
(Spot gold daily chart source: FX678)
Gold prices remained stable, failing to break through the $4,800 mark. This prompted a further decline in gold prices below the psychological level of $4,750. Next, gold prices may challenge the 100-day simple moving average at $4,718.
It's worth noting that since reaching a monthly high of $4,890, this yellow metal has consistently exhibited a pattern of lower highs and lower lows over the past three days. Consequently, market sentiment has shifted from neutral to bearish. Sellers anticipate a break below the 100-day and 20-day simple moving averages, with the 20-day simple moving average currently at $4,692, already below the $4,700 mark.
Below this price level, the next important support level is $4,600.
For gold to continue its upward trend, the price must break through the $4,800 mark again. Only then can investors maintain hope for further price increases. The next key resistance level is the $4,883 level, corresponding to the 50-day simple moving average.
U.S. Treasury yields declined mid-week, with investors rushing to buy precious metals after Tuesday's price drop, a phenomenon evident in both the gold and silver markets. However, gold lost its earlier gains when the 10-year U.S. Treasury yield fell back to 4.298%. Meanwhile, the dollar strengthened. The dollar index rose 0.17% to 98.57, its highest level in seven days.
High oil prices are the main reason why gold prices cannot rise sustainably. With increasing inflationary pressures, the Federal Reserve is more likely to maintain high interest rates for an extended period. Money markets expect the Fed to keep rates unchanged in 2026, while speculators anticipate the first rate cut in July 2027.
Geopolitically, US-Iran negotiations have stalled due to the US blockade of ships flying the Iranian flag. Tehran is escalating the conflict: the Iranian Islamic Revolutionary Guard Corps seized three cargo ships in the Strait of Hormuz, demanding the US lift the blockade. US President Donald Trump has decided to extend the ceasefire while awaiting a proposal from Tehran. Reports indicate internal divisions within the Iranian leadership. The ceasefire agreement between Israel and Lebanon is also under pressure following the Israeli drone strike that killed at least three people.
Following Trump's statement, hopes for a resolution to the Strait of Hormuz issue led to a slight rebound in gold prices. However, Bart Melek, global head of commodities strategy at TD Securities, stated that the situation remains highly volatile and uncertain.
Ahead of the release of US economic data, Thursday will see the release of unemployment claims data and the S&P Global PMI for April.
Technical Analysis: Short sellers have entered the market, targeting below $4700.
(Spot gold daily chart source: FX678)
Gold prices remained stable, failing to break through the $4,800 mark. This prompted a further decline in gold prices below the psychological level of $4,750. Next, gold prices may challenge the 100-day simple moving average at $4,718.
It's worth noting that since reaching a monthly high of $4,890, this yellow metal has consistently exhibited a pattern of lower highs and lower lows over the past three days. Consequently, market sentiment has shifted from neutral to bearish. Sellers anticipate a break below the 100-day and 20-day simple moving averages, with the 20-day simple moving average currently at $4,692, already below the $4,700 mark.
Below this price level, the next important support level is $4,600.
For gold to continue its upward trend, the price must break through the $4,800 mark again. Only then can investors maintain hope for further price increases. The next key resistance level is the $4,883 level, corresponding to the 50-day simple moving average.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
