View more search results

Market Insights > Daily Market Analysis

19 May 2025,05:37

Daily Market Analysis

Gold Rebounds Sharply as US Economic Woes Spark Safe-Haven Demand

Tags:

19 May 2025, 05:37

Share on:

Key Takeaways:

*Gold regains strength after disappointing US CPI, PPI, and Retail Sales data.

*Moody’s downgrade of US credit fuels flight to safety amid rising economic concerns.
Safe-haven flows return, reversing gold’s earlier weakness from US-China trade optimism.

Market Summary:

After the temporary US-China trade truce and the 90-day delay on new tariffs, gold initially experienced a selloff, breaking below key support levels as risk sentiment improved. However, that optimism was short-lived. A string of downbeat US macroeconomic data—including weaker-than-expected CPI, PPI, and Core Retail Sales—sparked renewed concerns about slowing inflation and softening consumer demand. These signals reinforced fears that the trade war had already damaged US economic fundamentals, prompting investors to seek safety in gold once again.

Adding to market jitters, Moody’s downgraded the outlook on US debt, citing an unsustainable fiscal trajectory. The downgrade raised the specter of higher Treasury yields due to increased credit risk premiums, which could weigh on corporate borrowing costs and economic growth. As a result, global equities, including US futures and Asian markets (Japan, Australia, South Korea), slipped, reinforcing safe-haven flows into gold.

Technical Analysis:

GOLD, H4

Gold prices are trending higher and currently testing a key resistance level. The MACD shows increasing bullish momentum, while the RSI at 51 suggests a slightly bullish bias as it remains above the midline. If momentum continues and gold breaks above the immediate resistance at 3240.00, further gains toward the next resistance at 3355.00 are likely. However, failure to breach the resistance could trigger a short-term retracement, with consolidation potentially taking place near the support level of 3120.00.

Resistance Levels: 3240.00, 3355.00
Support Levels: 3120.00, 3045.00

Step into the world of trading with confidence today. Open a free PU Prime live CFD trading account now to experience real-time market action, or refine your strategies risk-free with our demo account.

Disclaimer

This content is for educational and informational purposes only and should not be considered investment advice, a personal recommendation, or an offer to buy or sell any financial instruments.

This material has been prepared without considering any individual investment objectives, financial situations. Any references to past performance of a financial instrument, index, or investment product are not indicative of future results.

PU Prime makes no representation as to the accuracy or completeness of this content and accepts no liability for any loss or damage arising from reliance on the information provided. Trading involves risk, and you should carefully consider your investment objectives and risk tolerance before making any trading decisions. Never invest more than you can afford to lose.

Start trading with an edge today

Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.

Start trading with deposits as low as $50 on our standard accounts.
Get access to 24/7 support.
Access hundreds of instruments, free educational tools, and some of the best promotions around.

Join Now

Latest Posts

Dollar Weakens as Moody’s Downgrade Fuels U.S. Economic Concerns

Crude Oil Flatlines as Investors Monitor Iran Talks

Fast And Easy Account Opening

Create account

1

Register

Sign up for a PU Prime Live Account with our hassle-free process.
2

Fund

Effortlessly fund your account with a wide range of channels and accepted currencies.
3

Start Trading

Access hundreds of instruments under market-leading trading conditions.

Create account

Risk Warning: Trading Contracts for Difference (CFDs) involves a high level of risk and may not be suitable for all traders. The use of leverage magnifies both potential profits and losses, meaning you could incur losses greater than your initial deposit. It is important to understand the risks involved and assess whether you can afford to lose your invested capital. When trading CFDs, you do not own the underlying assets and have no rights to them. Past performance is not indicative of future results. The information provided on this website is for general informational purposes only and does not constitute investment advice, recommendation, or solicitation to engage in any investment activities. It does not take into account your personal financial circumstances, investment objectives, or risk tolerance. Any interaction with this website is an individual and voluntary action on the part of the user. The content on this website should not be construed as an invitation to enter into or acquire PU Prime’s financial services and products. Under no circumstances shall the Company be held liable for any loss or damage, in whole or in part, arising from, or in connection with, any CFD trading activities. Please review the legal documents available on our website to ensure that you fully understand the risks associated with CFD trading. If necessary, seek independent advice from qualified professionals.

Regional Restrictions: This information on this website is not intended for distribution to, or use by, any person or entity who is a citizen or resident of certain jurisdictions, including, but not limited to, Singapore, the United States, China, and jurisdictions listed on the FATF “blacklist”, and the major global sanctions lists. It is also not intended for distribution or use in any jurisdiction where such distribution or use would violate local laws or regulations.

PU Prime is a trading name for multiple licensed entities operating across different jurisdictions, each authorised to provide specific financial services in accordance with local regulations. Upon registration, you will be assigned to the entity that corresponds with your location and complies with the applicable regulatory requirements. The entity you are registered with will govern your trading activities, which will be subject to the oversight and regulations of its respective regulatory authority. While these authorities have granted a securities or investment dealer license to the respective entity, they do not endorse the products offered.

PU Prime Limited is securities dealer authorised and regulated by the Financial Services Authority of Seychelles under License No. SD050, with its registered address at CT House, Office 9A, Providence, Mahe, Seychelles.

PU Prime Ltd is an investment dealer authorised and regulated by the Financial Services Commission of Mauritius under License No. GB23202672, with registered address at Suite 201 Level 2, The Catalyst, Cybercity Ebene, Mauritius.

PU Prime (Pty) Ltd is a financial service provider authorised and regulated by the Financial Sector Conduct Authority of South Africa under FSP No. 52218, with registered address at 37 Harley Street, Ferndale, Randburg, Gauteng 2194, South Africa.

PU Prime Trading Pty Ltd is an Australian financial services licensee authorised and regulated by the Australian Securities and Investments Commission of Australia under License No. 410681, with its registered address at Suite 103, Level 1, 17 Castlereagh St, Sydney, NSW 2000, Australia. For Australian clients who have onboarded through https://www.puprime.au, the product issuer is PU Prime Trading Pty Ltd.

Finzero Cap Ltd. is registered in the Republic of Cyprus under registration number HE414308. Its registered office is located at Archiepiskopou Makariou III, 160-1st floor, 3026, Limassol, Cyprus.

We and third parties use cookies to enhance your user experience. For more information, see our Cookie Policy and Privacy Policy. By clicking "Accept", you agree to the use of cookies.