Gold Prices Retreat from Record Highs, Stocks Follow Suit

Gold prices dropped 2.6% to $3,329.10 an ounce, pulling back from Tuesday's all-time high of $3,500.05, after US President Donald Trump's conciliatory comments signaled no plans to remove Federal Reserve Chair Jerome Powell and hinted at potential tariff relief. Gold stocks also retreated, with Endeavour down 3.7% and Fresnillo off 11%. Despite the pullback, JP Morgan still sees gold prices reaching $3,675 by year-end and $4,000 in Q2 2023.

Gold prices dropped 2.6% to $3,329.10 an ounce on April 23, 2025, after retreating from Tuesday's all-time high of $3,500.05. The pullback was attributed to US President Donald Trump's conciliatory comments, which signaled no plans to remove Federal Reserve Chair Jerome Powell and hinted at potential tariff relief [2].

Trump's remarks, made on Monday, drove the stock market and the dollar lower. The Dow dropped by more than 1,000 points, and the S&P 500 index fell nearly 3% in mid-day trading. The dollar fell to a three-year low, and the interest rate on 10-year Treasuries ticked higher to 4.37% [2].

Gold stocks also retreated, with Endeavour down 3.7% and Fresnillo off 11%. Despite the pullback, JP Morgan still sees gold prices reaching $3,675 by year-end and $4,000 in Q2 2026. The bank's forecast is based on continued robust buying from investors and central banks, with net gold demand averaging around 710 tonnes per quarter this year [3].

Gold prices have climbed 29% so far this year, touching an all-time high of $3,500 per ounce on April 22. Goldman Sachs has also turned more bullish, recently raising its 2025 year-end forecast from $3,300 to $3,700 per ounce. In an extreme case, the bank said, gold could surge to $4,500 by the end of next year [3].

However, JP Morgan flagged potential downside risks. Should central bank demand weaken, or if the US economy weathers tariff shocks better than expected, the Fed may adopt a more hawkish stance—possibly triggering rate hikes. "More materially bearish would be a scenario where US economic growth remains extremely resilient to tariffs, allowing the Fed to turn much more proactive in fighting inflation risks," the bank warned [3].

Silver, meanwhile, may face near-term headwinds from soft industrial demand. But JP Morgan expects a rebound in the second half of the year [3].

References:

[1] https://www.benzinga.com/25/04/44927342/novagold-partners-inks-deal-with-barrick-gold-boosts-stake-in-donlin-project-for-1-billion
[2] https://www.sfchronicle.com/news/politics/article/trump-renews-attacks-on-federal-reserve-chair-20286467.php
[3] https://www.indiatoday.in/business/story/gold-price-at-rs-4000-dollar-by-2026-jp-morgan-shares-view-2713228-2025-04-23