By: Payel
Published on: Apr 25, 2025
Gold prices staged a strong recovery on April 24, 2025, driven by heightened demand for safe-haven assets amid escalating geopolitical tensions and uncertainty surrounding US trade policies under President Donald Trump. After slipping to a one-week low of below $3,300 per ounce, gold futures surged 1.7% to $3,349.30, while the spot price climbed 0.4% to $3,330.04. This rebound follows a volatile week that saw gold hit a record high of $3,500.05 before retreating due to optimism over US-China trade relations.
The precious metal’s rally reflects bargain hunting by investors capitalizing on the dip, bolstered by robust fundamentals and renewed concerns over global instability. This article explores the factors driving gold’s resurgence, the impact of Trump’s tariff policies on currency markets, and the broader implications for commodities like oil and the pound, providing a comprehensive outlook for investors.
Gold has long been a go-to asset during times of economic and geopolitical uncertainty, offering no yield but serving as a hedge against volatility. On April 24, 2025, this appeal was amplified by intensified conflict in Ukraine, where Russian forces launched a deadly drone and missile assault on Kyiv. The attack, occurring despite ongoing US-brokered ceasefire talks, heightened fears of regional instability, prompting investors to seek refuge in gold.
Analysts at Capital.com noted that the volatility in gold prices this week was driven by technical factors and headline risks, but the underlying fundamentals remain strong. "The kind of volatility we're seeing is being driven by technicals and headline risk. But the fundamentals are strong, so dip buying is effectively a function of investors moving in on the basis of the bigger picture," said Kyle Rodda, a financial market analyst at Capital.com.
Gold’s price movements in the days leading up to April 24 were marked by significant swings. After reaching an all-time high of $3,500.05 on Tuesday, prices fell below $3,300 on Wednesday as optimism about US-China trade relations temporarily reduced safe-haven demand. However, Thursday’s rebound was fueled by investors seizing the opportunity to buy at lower prices, confident in gold’s long-term value amid persistent global uncertainties.
JP Morgan analysts further bolstered bullish sentiment, reiterating their forecast that spot gold could reach $4,000 per ounce by 2026. This projection is driven by expectations of continued macroeconomic uncertainty, including trade disputes, inflationary pressures, and geopolitical risks, all of which enhance gold’s appeal as a safe-haven asset.
The US dollar faced downward pressure on April 24, 2025, as uncertainty surrounding President Trump’s trade policies rattled currency markets. The US Dollar Index, which tracks the greenback against a basket of six major currencies, fell 0.4% to 99.50. This weakness was attributed to conflicting signals from the White House regarding tariffs, particularly targeting Canada and China.
On Wednesday, Trump announced a 25% tariff on Canadian car imports to bolster domestic auto manufacturing, with the possibility of further increases. However, reports from the Financial Times suggested that the administration was considering exemptions for car parts in tariffs aimed at China, intended to address Beijing’s role in exporting fentanyl precursor chemicals. Additionally, Trump hinted at potentially lowering the proposed 145% tariffs on Chinese goods, contingent on Beijing’s willingness to resume negotiations—a prospect Chinese officials have so far resisted.
Earlier in April, the US imposed sweeping reciprocal tariffs of up to 50% on nearly all trading partners, later revised to a 10% baseline for a 90-day period. Consumer electronics, such as laptops and smartphones, were temporarily exempted, though separate duties could be introduced later. This lack of clarity has unsettled currency markets, weakening the dollar and boosting the pound.
The British pound capitalized on the dollar’s weakness, rising 0.2% to $1.3283 in early European trading on April 24. Investor unease over US trade policies, coupled with the dollar’s decline, supported the pound’s upward movement. However, the pound lost 0.1% against the euro, trading at €1.1686, reflecting mixed dynamics in currency markets.
The pound’s performance underscores the broader impact of US trade policies on global currencies. As Trump’s tariff plans continue to evolve, currency markets are likely to remain volatile, with implications for investors and policymakers alike.
Oil prices also saw gains on April 24, 2025, after a 2% decline in the previous session. Brent crude futures rose 1% to $66.74 per barrel, while US West Texas Intermediate (WTI) crude climbed 1.2% to $62.99 per barrel. The recovery was driven by investor assessments of a potential OPEC+ output increase and ongoing US-Iran nuclear talks.
Reuters reported that several OPEC+ members were considering accelerating oil production increases for June, marking the second consecutive month of planned output hikes. This prospect, combined with disagreements within OPEC+, contributed to the previous day’s price drop. ING analysts noted, "While yesterday's risk-on move lifted most risk assets, oil lagged behind due to disagreements within OPEC+."
The possibility of increased Iranian crude supplies further weighed on oil prices. The US and Iran are set to begin a third round of nuclear negotiations, aiming to revive a deal that would cap Tehran’s uranium enrichment in exchange for sanctions relief. A successful agreement could bring Iranian oil back to global markets, potentially exerting downward pressure on prices.
In equity markets, the FTSE 100 index edged lower on April 24, declining 0.1% to 8,392.99 points. The drop followed warnings from the Bank of England about the potential impact of a global trade war on UK growth, coupled with a plunge in UK consumer confidence to a record low. These developments highlight the interconnected nature of global markets, where geopolitical and trade uncertainties ripple across asset classes.
Gold’s rebound on April 24, 2025, underscores its enduring appeal as a safe-haven asset in times of uncertainty. With geopolitical tensions in Ukraine, trade disputes, and macroeconomic challenges showing no signs of abating, gold is well-positioned for further gains. JP Morgan’s $4,000 per ounce forecast for 2026 reflects confidence in gold’s role as a hedge against inflation, currency volatility, and global instability.
Investors looking to capitalize on gold’s potential should monitor key developments, including US trade policy decisions, geopolitical events, and central bank actions. Bargain hunting during price dips, as seen on April 24, could offer attractive entry points for long-term investors.
For oil markets, the balance between OPEC+ production decisions and potential Iranian supply increases will be critical in shaping price trends. Investors should also keep an eye on US-Iran nuclear talks, as a breakthrough could significantly alter global oil supply dynamics.
In currency markets, the pound’s performance will depend on the interplay between US trade policies and domestic UK economic indicators. As the dollar navigates tariff-related volatility, currencies like the pound and euro may see opportunities for gains, though risks remain.
The resurgence of gold prices on April 24, 2025, reflects the complex interplay of geopolitical risks, trade uncertainties, and investor sentiment. As Trump’s tariff policies continue to unsettle currency and commodity markets, safe-haven assets like gold are likely to remain in demand. Meanwhile, oil prices and currencies such as the pound are navigating their own challenges, from OPEC+ decisions to UK economic headwinds.
For investors, staying informed about global developments and maintaining a diversified portfolio will be key to navigating this volatile landscape. Gold’s rally serves as a reminder of its enduring value in uncertain times, while oil and currency markets highlight the need for vigilance in a rapidly evolving global economy.
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