Gold Slides After Peak—Buy the Dip at $3,300?

Gold hit an all-time high of $3,357 on Thursday morning before backing off as traders took profits.

The dip comes after another round of geopolitical stress, this time triggered by US tariffs on Chinese chips and critical minerals. President Trump’s new probe into Chinese mineral imports has added fuel to the already simmering trade tensions.

With markets getting nervous, investors are doubling down on safe-haven assets—and gold is the top of the list. The US dollar index is near a 3-year low making gold even more attractive to foreign buyers. “Volatility in both stocks and bonds is driving a portfolio shift to gold” said Trevor Yates of Global X.

The rally has been incredible: gold is up 27%+ in 2025 so far as inflation, political risk and global economic softness concerns mount.

Gold May Be Due for a Breather—At Least for Now

Despite the strong fundamentals the technicals are flashing warning signs. Gold (XAU/USD) is at $3,338 just below the $3,357 Fibonacci extension that was short term resistance.

The Relative Strength Index (RSI) is at 78.2 well into overbought territory. That doesn’t mean the rally is over—but it does mean the market may need to cool off before making another move higher.

Support levels to watch:

• $3,318 – 23.6% Fibonacci retracement

• $3,294 – 38.2% retracement

• $3,275 – 50% retracement

These are the areas to buy into if the market pulls back.

Trade Setup: Buy the Dip but Don’t Chase

For new traders this is a classic “buy the dip” setup—as long as support holds. Jumping in at current levels could be a reversal risk especially with momentum fading and overbought signals flashing.

Trade Plan:

• Entry: $3,294-$3,275 (wait for confirmation)

• Target: $3,357-$3,381

• Stop Loss: $3,247

• Pro Tip: Look for a bullish reversal candle (hammer or engulfing pattern) before entering. Let the market show you it’s ready to move higher.

Final Thoughts

Gold is still good. Inflation, dollar and global uncertainty are driving demand. But even the best rallies need to pause.

If you wait, the dip could be a better entry and a golden opportunity to get on for the next move.