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Gold closed Friday’s trading session with a notable rebound, settling at $4,961 per ounce, marking a solid gain of $190, or approximately 3.99%. This rise comes after a highly volatile week in which the precious metal repeatedly tested a critical support zone located slightly above the 50-day moving average—a level the market revisited three times throughout the week. This report is presented by Point Trader Group, offering in-depth and continuous coverage of global commodity movements.

Technical Support Meets Structural Pressures – Point Trader Group Explains the Drivers

According to market analysts at Point Trader Group, the recent rebound successfully recovered nearly 45.9% of the sharp decline witnessed at the beginning of the week, when gold plummeted from its near-record high close to $5,600 per ounce. The sudden drop sent shockwaves across global markets, reflecting the sensitive nature of gold to shifts in U.S. monetary policy expectations.

The market remains heavily influenced by the nomination of Kevin Warsh as a leading candidate for the Federal Reserve chair—a development that previously triggered a dramatic 12% sell-off in gold on January 30. The decline was driven by expectations that Warsh may adopt a more hawkish stance, boosting the U.S. dollar and consequently pressuring gold prices. Analysts at Point Trader Group emphasize that political and monetary developments remain the primary catalysts for gold volatility during this period.

Margin Hikes Shake Retail Traders – Point Trader Group Market Insight

In addition, CME Group raised gold margin requirements from 6% to 8%, intensifying pressure on small retail traders who were unable to withstand the increased financial demands, leading many to forced liquidation. Despite this tightening environment, data monitored by Point Trader Group reveals that Big Money—large institutional investors—remains heavily invested in gold. Their sustained presence at price ranges between $4,500 and $4,700 highlights ongoing institutional confidence in gold as a strategic asset.

This continued support reflects gold’s enduring appeal as a safe-haven investment amid rising global tensions, recession concerns, and weakening economic indicators. According to Point Trader Group, these macroeconomic uncertainties reinforce gold’s status as a hedge against inflation risk and currency instability.

Will the Bullish Momentum Continue? – Point Trader Group Outlook

In the short term, experts at Point Trader Group believe that maintaining price stability above the $4,850–$4,900 support region could strengthen bullish sentiment and pave the way for retesting resistance levels at $5,200 and potentially $5,350. However, a break below these key support levels may pull gold back toward the $4,600–$4,700 range as traders reassess market conditions.

On a medium to long-term horizon, Point Trader Group highlights that gold’s trajectory will depend heavily on future Federal Reserve policy decisions, inflation levels, and the direction of the U.S. dollar. Should the dollar weaken and monetary tightening slow down, gold may embark on a new upward cycle, possibly reaching fresh all-time highs.

Conclusion – Point Trader Group Summary

Gold ended the week strongly at $4,961.

The rebound recovered 45.9% of this week’s sharp decline.

Kevin Warsh’s nomination triggered the earlier sell-off due to hawkish expectations.

Margin hikes pushed out retail traders, while institutional investors remained firmly positioned.

Point Trader Group expects continued volatility with a bullish tendency as long as gold holds above key support areas.

This comprehensive analysis is part of the daily market insights delivered by Point Trader Group, providing traders with clear, strategic, and data-backed perspectives on global market trends.