Trading Update 25th May 2025

Why Gold Prices Remained Steady Despite Market Volatility

Gold prices moved within a narrow but active range this week, as global events and economic signals kept traders on alert. From 18th to 25th May, spot gold fluctuated between $3,200 and $3,350 per ounce, responding to a mix of political uncertainty, US economic data, and shifting investor sentiment. These movements created opportunities for spread bettors looking to capture short-term volatility in one of the most closely watched commodities.

Gold Price Action This Week

Spot gold opened on Monday, 18th May, at around $3,329 per ounce and faced downward pressure in the early days of the week. As the US dollar strengthened and trade tensions between major economies temporarily cooled, demand for safe-haven assets eased slightly. By Tuesday, gold dipped near $3,284, testing technical support zones.

Midweek, the narrative shifted. Renewed threats of tariffs, particularly focused on tech firms and trade partners, injected fresh uncertainty into the markets. Gold rebounded strongly, rising to a high of $3,313 by Wednesday evening. By Friday, spot gold hovered around $3,300, ending the week just below where it had started.

Despite fluctuations, gold maintained a relatively stable range. These intraday shifts, often sparked by global news, created actionable setups for traders using tight stops and defined entry points.

Gold Stocks and Sector Performance

Gold mining stocks and related equity plays showed less enthusiasm than the metal itself. Large-cap producers, including key names in North America and Australia, fell early in the week in line with softening gold prices. Shares recovered modestly midweek but failed to match the whole rally of bullion.

Investor caution regarding future margins, ongoing labour issues, and higher input costs likely contributed to the underperformance. As a result, gold-focused ETFs and mutual funds posted only minor gains by week’s end, trailing behind broader stock indices, which saw more consistent upward movement due to positive economic data in sectors like retail and manufacturing.

Political and Geopolitical Drivers

Several global developments influenced gold sentiment over the week. Trade policy remained in the spotlight, with fluctuating signals from the United States about tariff plans. Early in the week, optimism around a potential resolution with China suppressed gold prices. But later in the week, hardline statements regarding new tariffs on European goods, including automotive imports, renewed market anxiety.

Simultaneously, background discussions involving the US and Iran introduced a layer of uncertainty. Any shift in Middle East relations can quickly affect energy prices, investor risk appetite, and, by extension, gold demand.

Elsewhere, ongoing instability in emerging markets added to gold’s appeal as a hedge. Traders closely followed developments in Eastern Europe and parts of Asia where currency pressures and political unrest created occasional spikes in safe-haven buying.

Economic Signals and Central Bank Activity

The US economic calendar featured several notable releases. Inflation figures held steady, with no major surprises, keeping gold supported but not surging. Federal Reserve officials continued to send mixed signals regarding potential interest rate changes. While some market watchers hoped for cuts, others pointed to inflation resilience as justification for holding current rates.

This cautious central bank tone limited the upside of gold. Additionally, a stronger dollar index capped gains for overseas buyers, making gold slightly more expensive in other currencies.

Global central banks—particularly in emerging economies—remained net buyers of gold, although not at levels high enough to shift price trends significantly. These purchases reflect a long-term strategy of diversification away from foreign reserves dominated by the US dollar.

Technical Levels and Spread Betting Opportunities

Technically, gold traded within a well-defined range this week. The $3,300 level acted as psychological support, while resistance near $3,350 capped upward momentum. Traders favoured range-bound strategies, selling into strength and buying on dips with stops placed just outside key levels.

Momentum indicators suggested short-term overbought conditions midweek, aligning with a brief pullback. Spread bettors capitalised on these swings by focusing on breakout attempts and failures around the week’s high and low.

Key intraday opportunities came during high-volume news hours, particularly during North American trading sessions. Gold’s sensitivity to political announcements meant that fast execution and disciplined risk control were essential.

What to Watch Next Week

Looking ahead, several themes could drive gold volatility. US economic data, including personal consumption figures and employment updates, may shift expectations around monetary policy. Stronger-than-expected results could weigh on gold as traders anticipate tighter financial conditions.

At the same time, global politics remains an ever-present risk factor. Any flare-ups in US-China relations or developments in the Middle East could rapidly boost safe-haven demand. Additionally, OPEC+ negotiations on oil output might affect broader commodity sentiment, which often correlates with gold movements in volatile periods.

Technical levels remain tight. If gold breaks above $3,350 with volume, it could target $3,375 next. A downside move through $3,280 would likely test $3,250. Spread bettors should prepare for more headline-driven sessions and continue using tight stop-losses to manage risk.

Final Thoughts

Gold delivered a relatively balanced week for traders from 18th to 25th May. While the metal didn’t see extreme price swings, the consistent 2–3% range allowed disciplined traders to find opportunities. Political shifts, trade tensions, and steady central bank messaging contributed to the week’s narrative.

For spread betting, this environment remains favourable—the blend of technical reliability and news-sensitive price action suits short-term strategies. As long as markets remain uncertain and inflation lingers, gold will stay at the centre of trading conversations.

Check out the up-to-date and historic gold prices here.