Trading Update 31st August 2025

Weekly Gold Price Update – $3,372 to $3,475 in Just Seven Days

Spot gold prices rose significantly between August 24 and 31, 2025, with the market rallying from around $3,372 to near $3,475 per ounce. That rise of more than 3% came in a single week, highlighting gold’s continuing role as the global safe-haven asset of choice. For traders, the moves provided multiple opportunities to catch breakouts and retracements, while reinforcing gold’s sensitivity to political and macroeconomic shifts.

Throughout the week, price action was influenced by three main drivers: Federal Reserve commentary on potential rate cuts, a weakening U.S. dollar, and consistent demand from central banks. Added to these were rising geopolitical risks and changing stock market sentiment, which deepened gold’s appeal as a hedge. Let’s take a closer look at how the market unfolded, why it moved, and what spread bettors can learn from the week.

Spot Gold Price Movements

On Monday, 24 August, gold opened near $3,372. Initially, the market struggled to find direction, dipping briefly to $3,365 on Tuesday. That slight decline reflected early strength in the U.S. dollar and short-term risk appetite in equity markets. Some traders took profits after the previous week’s gains, creating a shallow pullback.

But the dip was quickly bought. From mid-week onwards, the gold price moved steadily higher, breaking above $ 3,450 by Thursday and pushing towards $3,475 on Saturday, 30 August. On Sunday, 31 August, an intraday spike briefly lifted spot gold to $3,484, its highest point since early July.

The key takeaway here is how the $3,365–$3,370 zone provided solid support—traders who recognised that the floor had clear opportunities to buy on weakness. Once resistance at $3,450 was cleared, momentum buying carried the market quickly higher, offering clean setups for short-term spread bets.

Federal Reserve Policy and Rate Cut Expectations

The Federal Reserve was the most influential driver of gold this week. Officials hinted that a September rate cut is now more likely, pointing to a softening labour market and persistent concerns over credit conditions. Traders priced in an 85% probability of a 25-basis-point cut at the next meeting.

Gold benefits from lower interest rates because it reduces the opportunity cost of holding a non-yielding asset. Every hint of easing made bullion more attractive. The rate-cut narrative provided steady upward pressure throughout the week, with each dovish comment sparking bursts of buying.

For spread bettors, the lesson is simple: keep Fed policy on your radar. Rate expectations remain the single most significant macro driver for gold. Even intraday comments can significantly impact price action.

Dollar Weakness as a Tailwind

The U.S. dollar fell against major peers during the week, reinforcing gold’s rally. The euro and yen both gained ground, while emerging market currencies also stabilised after months of weakness.

A weaker dollar makes gold more affordable for international buyers, boosting physical demand and attracting more investor flows into bullion. Currency traders moving out of the dollar often shift into gold as a parallel hedge. This dual effect magnified upward momentum, helping gold sustain its climb beyond technical resistance.

For traders, watching the dollar index alongside gold proved highly effective this week. When the dollar slipped on Thursday, gold instantly broke higher, offering a perfect signal for long positions.

Political Risks and Global Demand

Geopolitical tensions remained high, adding to gold’s safe-haven appeal. Trade disputes, sanctions threats, and continued political friction between major economies raised uncertainty. Investors shifted capital into gold as protection against both inflation and volatility in other asset classes.

Asian demand also played a key role. With the festival season approaching, jewellery and retail buying increased across India and China, reinforcing the floor under prices. Central banks in emerging markets continued to expand reserves, hedging against currency swings and trade instability. This steady official sector demand provided gold with a strong foundation, even when markets appeared temporarily overbought.

The result was a powerful combination of institutional buying, retail flows, and speculative positioning, all of which supported gold’s bullish outlook.

Impact on Stocks and Other Assets

Equity markets moved inversely to gold at several points. On days when gold rallied strongly, stock indices gave up ground, especially in the U.S. tech and financial sectors. Lower bond yields and rising safe-haven flows weighed on bank earnings outlooks, while global uncertainty discouraged risk-on trades in growth stocks.

Commodities and currencies also reflected gold’s moves. Energy stocks tracked oil more closely, but sentiment weakened when gold surged as investors rotated into havens. Emerging market equities also softened, pressured by currency weakness and capital outflows into bullion.

For spread bettors, cross-asset relationships provided confirmation signals. When equities pulled back and the dollar dipped, gold’s rallies gained credibility. Traders who followed these correlations found it easier to time entries and exits.

Trading Lessons for Spread Bettors

• The 24–31 August period provided clear lessons for active traders:Support and resistance matter. The $3,365–$3,370 floor held firm, while the $3,450 breakout zone offered a textbook buy trigger.
• Macro news drives momentum. Fed commentary and dollar moves dominated direction, so staying updated was critical.
• Cross-asset signals help confirm entries. Watching equities and currencies alongside gold added confidence to trades.
• Intraday volatility creates opportunity. Short dips during the rally offered multiple scalping setups for nimble spread bettors.

Gold’s movements this week underlined why it remains a favourite market for active traders. Liquidity, volatility, and clarity of drivers make it ideal for spread betting strategies.

Seasonal and Longer-Term Outlook

Looking ahead, seasonal demand is expected to continue supporting gold into September. Historically, late summer and early autumn bring stronger retail and jewellery buying in Asia. If central banks maintain their current pace of reserve building, the demand picture will remain bullish.

On the macro side, much depends on U.S. economic data in early September. A weaker jobs report or softer inflation would reinforce expectations of a September rate cut, potentially lifting gold beyond the $3,500 level. Some analysts now see scope for a year-end move towards $3,600–$3,650 per ounce if dovish policy and political risk persist.

However, traders should remain alert. Any surprise in U.S. data, such as more substantial employment or firmer inflation, could limit rate-cut expectations and trigger short-term pullbacks. Active risk management remains essential.

Final Thoughts

The gold market between August 24 and 31, 2025, once again demonstrated why bullion is such a compelling asset for traders. Spot prices advanced from $3,372 to $3,475, driven by shifts in Fed policy, a weaker dollar, strong central bank buying, and geopolitical tensions. Stocks and currencies confirmed these moves, creating a cross-market environment rich in trading signals.

For spread bettors, the week reinforced the importance of combining macro awareness with technical precision. Gold remains one of the most responsive markets to global events, offering sharp swings that can be turned into profit with careful planning. As September approaches, traders should watch Fed updates, U.S. economic data, and seasonal buying patterns. With volatility likely to remain high, gold continues to deliver both protection and opportunity for disciplined spread betting strategies.

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