Trading Update 20th April 2025

Gold Hits New Highs: Key Drivers Behind the Weekly Rally

Gold prices surged again this week, driven by political tension, economic uncertainty and strong demand. From trade disputes to central bank actions, the market has had no shortage of catalysts. Spot gold reached record highs before cooling slightly ahead of the weekend. Investors and spread bettors are watching closely as safe-haven demand continues to dominate.

Let’s break down the key movements and their meaning for your trading strategy.

Spot Gold Price Movements

Gold started the week strong. On Monday, April 14th, the price opened around $3,213 per ounce. This came after a previous high the week before, setting the tone for another volatile few days.

By Tuesday, gold had climbed to roughly $3,238 as concerns over new trade restrictions heated up. Traders responded to escalating US–China tensions, boosting safe-haven demand.

On Wednesday, April 16th, gold spiked to a new all-time high near $3,333 per ounce. The price rally reflected broader concerns about global stability and the weakening dollar. Many traders took advantage of the sharp rise to lock in profits, causing a slight retreat on Thursday. By 17th April, spot gold had settled just below its peak, hovering near $3,322.

Markets were closed on Friday, 18th April, for the Easter bank holiday, but sentiment remained bullish heading into the weekend. The week closed with gold still up significantly, building on an already strong performance for April.

Political and Economic Factors Driving Prices

Several political headlines helped drive gold prices higher this week. Trade friction between the US and China resurfaced with renewed intensity. The US announced more tariffs on critical minerals, stoking fears of another prolonged trade standoff. This move rattled markets and pushed investors toward safer assets.

At the same time, the US President softened his stance by exempting certain consumer electronics from new tariffs. This gave markets a short-lived boost, although the overall sentiment stayed cautious. Many saw the move as a tactical delay rather than a shift in direction.

In addition to trade pressures, tensions in the Middle East and Eastern Europe remained high. Russia–Ukraine developments have continued to unsettle global investors. Meanwhile, conflict concerns in the Middle East helped sustain gold’s appeal as a hedge against instability.

The Federal Reserve also played a part. Comments from the Fed Chair pointed to a data-driven approach to interest rates. With inflation still a worry, investors are unsure whether rates will stay high or start falling. This uncertainty keeps gold attractive since it doesn’t rely on yields.

Demand Trends: Central Banks and Investors

Gold demand isn’t just about fear. There’s also intense buying pressure from institutional players. Chinese insurers gained regulatory approval to increase their allocation to gold. This opened the door for significant purchases, fueling the rally.

Meanwhile, central banks continue to stockpile bullion. This isn’t a new trend, but the pace appears to be accelerating. Emerging markets, in particular, are diversifying away from the US dollar.

Exchange-traded funds (ETFs) have also seen a sharp increase in inflows. In the first quarter of 2025 alone, gold ETFs added more than 200 tonnes of bullion to their holdings. That’s the most substantial quarterly growth in over three years.

Retail investors aren’t being left out either. The fear of missing out on a historic run has drawn in new buyers. Many consider gold a hedge against inflation, currency devaluation, or geopolitical risk.

Impact on Stocks and Markets

The gold rally had a ripple effect in the broader market. Gold mining shares performed well overall, although some saw mild pullbacks midweek as gold paused for breath.

Newmont, one of the most prominent players in the sector, saw its share price dip slightly by Friday. The drop was modest—just under 2%—but reflected the general cooling in gold prices after Wednesday’s peak.

Other mining firms followed a similar pattern, with early-week gains giving way to slight corrections. However, year-to-date performance remains strong, and gold stocks still look attractive to many traders.

Outside of mining, broader equity markets remained sensitive to gold’s rise. A surging gold price can sometimes signal broader investor anxiety. That said, markets held relatively steady overall, suggesting traders are not yet in full risk-off mode.

Currency markets also reacted. Rising gold and commodity prices lifted the Australian dollar, for example, reflecting Australia’s role as a major gold producer and exporter.

Technical Outlook: Key Levels to Watch

Gold’s current technical setup is very appealing for spread bettors. The price has established support around the $3,200 level, and as long as this holds, bulls remain in control.

On the upside, resistance near $3,350 could present a challenge in the short term. A break above that range could signal the start of another leg higher. Some analysts are now set on the $3,500 mark as a medium-term target.

Volatility remains elevated, offering frequent entry and exit points for short-term trades. The key is discipline. Avoid chasing moves and instead focus on trading within well-defined ranges.

This setup can work well for traders using spread betting strategies. Tight stops below $3,200 and targets near $3,350 create a manageable risk-reward profile. Just be sure to stay nimble and adjust positions if key levels break.

What’s Ahead?

Looking forward, gold traders will be watching several key events. US inflation data is due next week and could sway interest rate expectations. Any signs of higher inflation may push gold even higher.

Traders will also monitor developments in the U.S.–China trade talks. So far, markets have reacted swiftly to any tariff news, whether positive or negative.

Central bank activity will also remain in focus. Any signs of further buying, especially from Asia, could extend the current uptrend. Likewise, further conflict or economic shocks could push gold beyond recent highs.

The big question is whether the rally can sustain itself or a correction is due. For now, the fundamentals remain strong, but sentiment can shift quickly. Spread bettors should prepare for both directions and stay alert to fast-moving headlines.