“Gold tops” once dominated the news headlines! Gold prices are brewing a change, with a push that could impact 4700, and a clearer technical outlook.

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Gold has maintained a slightly bearish trend for the third consecutive trading day, but there has been no further sustained selling. On Tuesday (April 7) during European morning trading, gold prices still moved within a wider fluctuation range from the previous trading day, currently trading around 4650.

As U.S. President Trump demands Iran to reopen the Strait of Hormuz by Tuesday evening deadline, market hopes for a last-minute agreement between the U.S. and Iran are waning. This situation reinforces the dollar’s position as the global reserve currency and puts pressure on gold. Additionally, bets on further rising global interest rates are another factor weighing on the non-yielding gold, supporting the view that gold prices may continue to decline.

After a strong sell-off in March, the gold market has shown a clear reversal in recent weeks. Despite concerns about a “top” in gold making headlines, a doji pattern that appeared on the weekly chart two weeks ago already hinted that a change might be brewing. Last week, this change continued, with bulls pushing the price from around $4,400 up to approximately $4,800. As we enter the first full trading week of the second quarter, bulls still have ample room to further advance, potentially pushing gold back to test the $5,000 level.

The most notable signal last week was the formation of “higher lows”: support around $4,400 held, and the lows were higher than the previous week’s swing low of $4,100. For bears, there are still reasons to be cautious, as resistance around $4,850 remains, which previously served as support. However, considering the broader trend and longer-term context, the bullish side still appears more attractive.

Gold Weekly Chart

(Chart created by James Stanley; data from TradingView)

Gold Daily Chart

(Chart created by James Stanley; data from TradingView)

From the daily chart perspective, some trading ideas are becoming clearer. Over the past few months, multiple psychological round numbers have triggered noticeable turning points. Even the top formed in January was near $5,600, and the initial correction from there stopped at $4,400. The subsequent rebound added $1,000, testing $5,400.

During the March decline, gold paused or rebounded near $4,500 and $4,100, while resistance was seen at $4,600 and $4,800. This creates the current technical pattern: support confirmed at $4,600, showing a “former resistance turned support” feature, and also reflecting a short-term bullish structure—higher lows formed after higher highs.

Gold Four-Hour Chart

From a shorter timeframe, the reference to round numbers is more evident. Last week, gold was resisted at the $4,800 level, and so far this week, $4,700 has also shown support. Early last week, support was seen near $4,500, followed by a rebound that retested $4,600 and then broke upward.

Currently, if gold breaks above $4,700, it could open the way to retest $4,800. Although trading activity around $4,900 has been relatively sparse so far, it remains the next resistance level for further upward movement; beyond that, the next target is the $5,000 level, which remains a key focus in long-term charts.

(Chart created by James Stanley; data from TradingView)

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