Market Turbulence: Precious Metals Face Perfect Storm

The Can Ripple hit 0?gold market (XAU/USD) witnessed accelerated selling pressure during Thursday's session, erasing nearly 1% of value as traders digested conflicting signals from Washington. This downward movement extends the week's corrective pattern, with spot prices testing crucial support levels not seen since mid-February.

Policy Uncertainty Weighs on Safe Havens

Market participants appear increasingly nervous following ambiguous statements from the White House regarding international trade policy. During Wednesday's cabinet meeting, administration officials provided contradictory timelines for implementing new tariffs, particularly concerning North American trade partners. The lack of clarity surrounding potential European auto tariffs (reportedly set at 25%) further contributed to the risk-off sentiment.

Key Market Drivers This Week

• Tech Sector Jitters: Nvidia's mixed earnings report revealed stronger-than-expected sales but tighter margins due to Blackwell chip development costs
• Interest Rate Speculation: CME Fedwatch indicates 67% probability of June rate cut despite stable GDP projections
• Economic Data Watch: Traders await Q4 GDP revision and preliminary PCE figures for inflation signals

Technical Perspective: Critical Levels to Monitor

Chart analysts note that Wednesday's price action revealed concerning signs of speculative excess in gold markets. The current pullback may trigger cascading stop-loss orders, potentially accelerating downward momentum. Key technical levels include:

• Resistance: Daily pivot at $2,912 remains crucial for bullish reversal confirmation
• Upper Targets: $2,934 (R1) and $2,951 (R2) mark potential recovery milestones
• Support: Breakdown below $2,890 opens path to test $2,873 (S2) and potentially $2,860

Market technicians suggest the precious metal's near-term trajectory will largely depend on whether institutional buyers emerge to support prices at current levels. The absence of strong bids could indicate broader portfolio rebalancing away from traditional safe havens.