After a volatile month which saw gold jump to new all-time highs, prices have settled down somewhat on a lack of fresh trade war news, but could push higher at any time.
April saw the price of gold jump from as low as $2,958.24 to a new USD record of $3,501.27 last week. Such a huge jump in price brought inevitable pressure from sellers who were happy to cash-in on the quick profit, and without fresh buying momentum the price has pulled back. Currently, gold seems to have stabilised around $3,300 per ounce.
Markets have been reassured by signs that President Trump has eased somewhat on trade tariffs. There have been comments of a possible trade deal between the US and China, although this seems to have been refuted by the Chinese who have released a video today claiming they will “never kneel down” to the US. There also looks to be some further exemptions on tariffs for US carmakers due to be announced later today.
It could take only a single comment from the President – or his trade war targets – however to reignite concerns of further damage to the global economy. Shipments from China to the US have already dropped sharply as the new 145% tariff rate was introduced.
If gold is entering a period of consolidation, then it is positive for the metal to be doing so at such a high level. At $3,300 per ounce, gold is up more than 26% so far in 2025 and more than 42% in the past year. That is certainly a bullish signal, and gold is just awaiting that next spark to push prices back up towards the all-time high of $3,500.
Central banks around the world have already been moving away from the US dollar to other assets, including gold. This de-dollarisation has only been further reinforced by President Trump’s trade war and will continue to support gold’s use in national reserves. The Royal Mint also announced record levels of gold demand from UK investors, a level of demand we at BullionByPost have also seen.
This combination of central bank and investor demand will continue to support gold prices in the weeks ahead, and whether gold is entering a short-term lull or a longer period of consolidation it remains well poised to push higher when that next spark arrives.
