On April 22, 2025, gold prices experienced significant volatility on Tuesday, briefly surpassing the $3,500 mark to hit a historic high before retreating by more than 1.5%. Spot gold fell 1.5%, settling at $3,372.68 per ounce, after rising as much as 2.2% during the session to reach $3,500.05. Meanwhile, U.S. gold futures settled down 0.2% at $3,419.40.
The market shift was primarily influenced by comments from U.S. Treasury Secretary Besant, who stated on Tuesday that trade tensions are likely to ease. Besant noted that while future negotiations will still be a "difficult" process, the current tariff standoff is unsustainable. These comments sparked market optimism, pushing stock markets up over 2% and boosting the dollar. The dollar index rose by 0.7%, making gold more expensive for holders of other currencies, leading to a decline in gold prices.
Bob Haberkorn, senior market strategist at RJO Futures, noted: "The U.S. Treasury Secretary's remarks hint at a potential easing in the trade war, which is exactly when gold started to experience selling off." With the dollar and stock markets rising, the gold market faced pressure as investors began to offload gold assets.
Despite the day's decline, spot gold has risen 29% so far this year and hit its 28th historic high on Tuesday. JPMorgan stated in its latest report that the uptrend in gold prices is expected to continue, especially amidst rising recession risks, increased U.S. tariffs, and ongoing trade tensions. JPMorgan predicts gold prices will surpass the $4,000 per ounce threshold next year.
Additionally, the market is also keeping an eye on the speeches by Federal Reserve officials later this week, particularly under questions about the Fed's independence, as investors look for clues on future monetary policy. Currently, gold's Relative Strength Index (RSI) is at 74, indicating an overbought condition, suggesting a potential short-term adjustment in the market.
In other precious metals, spot silver fell 0.7%, to $32.47 per ounce; platinum declined 0.8%, to $953.64 per ounce; while palladium rose 0.6%, to $932.75 per ounce.
