Insights 
Gold prices saw a dip to $3,235 as the pressure eased slightly due to a softer US Dollar. Recent US inflation data, which was lower than expected, encouraged a shift towards riskier assets, affecting gold prices amid talks of further Federal Reserve rate cuts.
On Wednesday, without major economic reports, attention shifted to President Trump’s visit to Saudi Arabia, securing $600 billion in trade deals. Additionally, Ukrainian President Zelenskyy is poised for possible peace talks with Russian President Putin in Istanbul, influencing global sentiment and market reactions.
India Trade Deficit Decreases
India’s trade deficit showed a decrease to $18.9 billion in April, partially due to reduced gold imports as high prices dampened demand. Additionally, a decline in crude oil prices is anticipated to lower oil import volumes, balancing typical seasonal trends.
Gold’s technical outlook reveals a consolidation phase between $3,207 and $3,300. The daily Pivot Point at $3,243 is identified as a target for any recovery, while strong resistance levels remain near $3,293. On the downside, support levels are positioned at $3,222 and $3,194, with the key technical support at $3,167.
We’ve seen gold wobble a bit this week, softening to $3,235 as the US Dollar lost some of its recent traction. The US inflation figures released earlier came in a touch lighter than expected, which was enough to nudge some traders back toward equities and other growth-oriented assets. That steady pullback from defensive holdings placed some downward pressure on bullion, though much of the move remains contained within established ranges.
With Wednesday bringing little in the way of scheduled economic indicators from major economies, the market’s attention meandered instead towards political developments. One key story was Trump’s meeting in Saudi Arabia, which reportedly locked in an extensive $600 billion in trade arrangements – an eye-catching number if it holds up under scrutiny. These types of large figures can calm certain funding concerns and often improve risk-on sentiment temporarily, depending on how feasible implementation appears across sectors.
Gold Price Action and Technical Analysis
At the same time, efforts at diplomacy took a tentative step forward as Zelenskyy signalled openness to negotiations, possibly in Istanbul, with Putin. Movements toward a ceasefire or even preliminary progress in ending hostilities typically favour broader risk appetite. That can undercut demand for safe-haven assets such as gold, particularly in times when inflation appears to be retreating and the major central banks grow more comfortable about easing their stance.
India’s April trade report added another piece to the mix. Their monthly deficit narrowed to $18.9 billion. Now, part of that came from a sharp decrease in gold buying, as domestic demand saw pressure from elevated prices. When people stop buying physical gold in large quantities because it’s simply getting too expensive, that shift matters over the medium term – especially when layered onto signs of reduced crude price pressures on imports.
Looking at technical structures, the current price action suggests firmness above lower supports yet hesitancy to challenge overhead resistance. The range between $3,207 and $3,300 has developed into a zone of calm after recent swings. Volume has started tapering a bit, which during a consolidation phase feels about right. Still, whenever price reacts around the $3,243 Pivot, we watch those levels closely, particularly on short-term timeframes.
Stronger barriers overhead sit just below $3,293, a zone that price has flirted with, though not convincingly breached. Below, we’ve mapped out support points around $3,222 and again further down near $3,194. Should price slip beneath those, the next practical level to focus on becomes $3,167 – a place buyers may start stepping in again depending on macro flows.
What matters over the next few weeks is how traders adjust to a combination of real rate expectations and demand signals. As positioning continues to reset following the inflation data, we remain attentive to volatility at boundary levels and whether the US Federal Reserve begins to signal a timeline for rate reductions more confidently. Trades should be structured knowing that the ranges may compress or break depending on external developments – mostly macroeconomic – and political stability indicators. The market appears to be temporarily pausing, but these pauses rarely hold indefinitely.
