Gold Consolidates as Investors Shift Focus from Safe Havens

Gold markets lost momentum on April 29, 2025, with prices slipping to $3,315.75 per ounce by early morning, according to Trading Economics. The market reacted to signs of easing U.S.-China trade tensions, a firmer dollar, and weaker demand from key buyers.

The previous week’s rally, which pushed gold to a record $3,500 per ounce, faded as traders shifted focus from safe-haven assets to riskier investments. The chart from TradingView shows gold’s price action over the past weeks.

After a sharp climb and a peak on April 22, prices reversed and entered a consolidation phase. Technical indicators confirm this shift. The 50-period moving average now acts as resistance, while prices hover just above the 200-period average.

Bollinger Bands have narrowed, signaling lower volatility and a market searching for direction. Market fundamentals drove this correction. The U.S. administration signaled willingness to ease tariffs, and China responded by exempting some U.S. imports from steep duties.

These actions reduced the urgency for safe-haven buying. The U.S. dollar index rose 0.3%, making gold more expensive for international buyers and further cooling demand.

Physical markets reflected this shift. In India, 24-carat gold traded at ₹95,320 per 10 grams in Mumbai, down from recent highs. Prices in other major cities, including Delhi and Chennai, followed a similar pattern.

Gold Market Consolidates After Strong Rally

The Indian market saw a brief rebound after early session losses, but prices stayed below the ₹1 lakh mark. In Indonesia, Antam’s gold price edged up to 1,966,000 IDR per gram, a modest gain after last week’s correction.

Chinese demand, a major driver for global gold flows, weakened further. Consumption dropped nearly 6% year-on-year in the first quarter, as high prices and economic uncertainty kept buyers on the sidelines.

This decline in demand coincided with the broader price pullback. ETF flows told a similar story. Gold ETFs saw their largest quarterly inflow in three years during the first quarter, with 226.5 metric tons worth $21.1 billion added.

However, recent days brought outflows, as investors took profits and rotated capital into equities and other assets. Technical analysis shows gold consolidating between $3,275 and $3,335, with resistance at $3,335 and support at $3,205.

A break below $3,155 could trigger further declines, while a move above $3,335 might invite renewed buying. The RSI and MACD both indicate a market working off overbought conditions, with momentum now neutral.

The gold market’s real story centers on recalibration. Traders responded to shifting policy signals and changing demand, taking profits after a historic rally. With trade risks easing and the dollar firming, gold’s appeal as a hedge diminished.

However, the market remains alert to U.S. economic data and central bank moves, which could quickly shift sentiment again. Gold’s long-term role as a store of value remains, but for now, the market is pausing to reassess.

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.