Spot gold just broke through the $3,290.00/oz mark, last trading at $3,290.01/oz, down 0.79% on the day; COMEX gold futures main contract last traded at $3,300.50/oz, up 0.06% on the day.

Spot gold just broke through the $3,290.00/oz mark, last trading at $3,290.01/oz, down 0.79% on the day; COMEX gold futures main contract last traded at $3,300.50/oz, up 0.06% on the day.

Spot gold just broke through the $3,290.00/oz mark, last trading at $3,290.01/oz, down 0.79% on the day; COMEX gold futures main contract last traded at $3,300.50/oz, up 0.06% on the day. The recent dip in gold prices is attributed to easing trade tensions between the United States and China, which has lifted the dollar and reduced demand for safe-haven assets [2].

On April 25, 2025, New York spot gold slipped 1.5% to close under $3,283 as easing trade tensions with China lifted the dollar and eroded demand for safe havens [2]. This trend continued as the S&P 500 and Nasdaq rose 0.6% and 1.5%, respectively, on the easing trade tensions, while the Dow slipped slightly lower [2]. The dollar rose on the shifting trade outlook, adding 0.1% against major rivals on the way to its first weekly rise in a month [2]. This strengthening of the dollar has weighed on gold and other commodities by making them more expensive overseas.

However, the market has seen significant volatility in recent days. On April 24, 2025, gold rebounded 1.7% to close at $3,332 as renewed concerns about the trade war with China stoked demand for safe havens [2]. This rebound was driven by the fact that China refuted any talks taking place with the White House and demanded that all "unilateral tariff measures" be lifted. This uncertainty and the hope for a quick end to the trade impasse sparked a risk rally on Wall Street, lifting the dollar and knocking gold sharply lower.

The trade war has been a significant driver of gold prices, with the metal benefiting from the uncertainty and safe-haven demand it generates. However, the recent easing of tensions and the rise of the dollar have weighed on gold prices. The metal is further supported by uncertainty over trade policies and the rising possibility of global recession, as warned by the IMF [2].

Despite the recent dip, gold has still gained nearly 30% this year and hit 28 record highs. JP Morgan has raised its gold price forecast to $4,000 by Q2 of next year, citing aggressive demand for bullion by global central banks and an increased likelihood of recession because of tariffs [2]. This forecast highlights the potential for gold prices to continue their upward trajectory, despite recent volatility.

In conclusion, the recent drop in gold prices is a result of easing trade tensions and a strengthening dollar. However, the metal remains supported by uncertainty over trade policies and the potential for a global recession. Investors should continue to monitor the trade war developments and their impact on gold prices.

References:
[1] https://goldprice.org/gold-price-today
[2] https://www.amergold.com/gold-news-info/daily-gold-update.php?srsltid=AfmBOor39CZG91R9VsdQ_H2lA8LEu6p8fiOTWzgxpD6xUD1w9IRHcjGX