Gold Market Analysis:

On Wednesday（May 7）, during the Asian session, spot gold abruptly tumbled over $50 from the two-week high it reached overnight, hitting a low of $3,361.11 per ounce—down roughly 1.8%. The drop came after China’s Ministry of Foreign Affairs released a schedule confirming that Chinese Vice Premier He Lifeng will meet with U.S. Treasury Secretary Janet Bessent, signaling resumed high-level China-U.S. trade talks. The easing of market concerns over international trade tensions reduced safe-haven demand for gold. Still, gold prices are up more than 4% so far this week. On Tuesday, gold surged nearly 3% to $3,438.29 per ounce, marking a new high since the April 22 all-time record, and closed at $3,430.36—its highest close on record.

Following the May 1–5 Labor Day holiday, markets in China—the world’s largest gold consumer—have reopened. On Wednesday, a spokesperson from China’s Ministry of Commerce confirmed that China agreed to resume talks with the U.S., with Vice Premier He Lifeng set to meet U.S. Treasury Secretary Janet Bessent during his visit to Switzerland. This will be the first formal negotiation since former U.S. President Trump imposed broad tariffs on China, raising optimism over a potential agreement between the world’s two largest economies.

Elsewhere in South Asia, Pakistan claimed it shot down five Indian aircraft and captured soldiers in retaliation for an early Wednesday airstrike by India. An analyst noted that rising tensions between these two nuclear-armed neighbors typically support gold prices, but the latest trade developments have strengthened the U.S. dollar, which weighs on gold—potentially offsetting the geopolitical risk premium.

According to the Bitop market analysis team, gold has soared nearly 30% since the beginning of the year, even reaching a record high of $3,500 per ounce in April. However, prices have pulled back in recent weeks as trade and geopolitical policies under Trump have triggered widespread market turmoil, prompting investors to seek safe-haven assets. For now, markets are closely watching geopolitical headlines and concerns over potential U.S. tariffs on imported pharmaceuticals, while awaiting the Federal Reserve’s FOMC interest rate decision and Fed Chair Jerome Powell’s press conference later today.

Gold Technical Analysis:

Gold posted strong one-sided gains on Monday and Tuesday, reaching as high as $3,438. However, in early Wednesday trading, the metal sharply reversed, falling to around $3,360. This significant retreat raises concerns about whether the bullish momentum can be sustained or if a larger bearish shift is underway.

From the weekly chart, after three consecutive bullish daily candles, the weekly chart now signals potential for a corrective pullback. The possibility of a large bearish candle engulfing the previous gains—potentially driving prices below $3,300—cannot be ruled out. Should this scenario play out, gold is likely to struggle with further upside this week, with Thursday and Friday potentially marked by either a downward trend or high-level consolidation.

From the daily chart, since reaching an all-time high near the $3,500 level, gold has been in a corrective phase. The current rebound above the $3,300 mark suggests that bullish forces remain present, but further gains will likely require a fundamental catalyst. The short-term moving averages offer limited support at this stage, while the MACD indicator remains in a bearish crossover (dead cross), suggesting that the tug-of-war between bulls and bears could continue.

From the four-hour chart, A strong bearish candle has erased gains from the previous multiple bullish candles, breaking below both the 5- and 10-period moving averages. This opens the door for a further decline toward the middle Bollinger Band near $3,300. However, if the market remains in a high-level consolidation pattern and holds above that midpoint, gold may attempt another move higher toward the $3,430 level. Therefore, the preferred strategy in this time frame is to sell high and buy low.

Overall:

Today's short-term tactical approach favors selling on rebounds as the primary strategy, with buying on dips as a secondary option. Resistance Levels: $3,400–$3,405& Support Levels: $3,350–$3,300 to Watch.

Gold Resistance Levels: $3,440-$3,450-$3,460

Gold Support Levels: $3,425-$3,418-$3,410

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.