Table of Contents
Gold prices hit a record high of $3,500.05 in April. They remain high due to geopolitical tensions, central bank buying, and trade conflicts. Investors have turned to precious metals to protect against market ups and downs. They will keep doing this as the Trump administration’s trade tariffs continue to change. Traders will turn to the Fed’s policy decision for further cues and impact short-term direction of the commodity.
The lasting appeal of gold has fascinated people for centuries. It has represented wealth and stability across different economic periods. The Smoot-Hawley Tariff Act of 1930 significantly worsened the Great Depression, causing widespread economic turmoil. Conversely, the 1971 “Nixon Shock” was a key moment in financial history. It led to significant currency fluctuations and inflationary pressures. In both cases, gold prices saw a significant rise as investors looked for a safe haven from the falling value of the U.S. dollar. This historical context underscores gold’s enduring status as a reliable asset during times of economic uncertainty and volatility.
In 2025, golds northbound train journey has been conducted in the midst of trade tensions. Central banks do indeed play a pivotal role in the commodities market. Market participants increase their reserves in gold to diversify from the greenback and safeguard against economic shocks.
Traders employ a range of strategies to capitalize on gold’s protective attributes, including but not limited to:
- Physical Gold
- Gold mining stocks
- Exchange-Traded Funds (ETFs)
Looking ahead, gold is likely to continue to be influenced by central bank actions, trade policies and geopolitical developments. If trade disputes remain, we do not rule price actions current north bound train direction. However, should disputes temper, the appeal of gold could change course.
In 2025, golds northbound train journey has been conducted in the midst of trade tensions. Central banks do indeed play a pivotal role in the commodities market. Market participants increase their reserves in gold to diversify from the greenback and safeguard against economic shocks.
Traders employ a range of strategies to capitalize on gold’s protective attributes, including but not limited to:
- Physical Gold
- Gold mining stocks
- Exchange-Traded Funds (ETFs)
Looking ahead, gold is likely to continue to be influenced by central bank actions, trade policies and geopolitical developments. If trade disputes remain, we do not rule price actions current north bound train direction. However, should disputes temper, the appeal of gold could change course.
Technical Analysis
Gold Weekly Chart
From a technical viewpoint, further gains are possible, and pullbacks may present a buying opportunity. However, we should not ignore bearish divergence. A larger pullback may happen between late 2025 and mid-2026. From an Elliott-wave perspective, Gold appears to be in a extended 4th wave which also provides caution of a turnaround in the coming weeks. London Bullion Market Association (LBMA) survey forecast indicates expectations ranging between $2,250 and $3,290.
The long term outlook for gold remains bullish with forecasts targeting as much as $3,700 by end of 2025. Goldman Sachs noted stronger-than-expected demand from central banks and increased exchange-traded fund (ETF) inflows. Other financial institutions have made forecasts for gold prices. Bank of America projects a price of $3,350 by 2026. UBS anticipates a price of $3,500. JP Morgan expects a price of $3,000, with an average of $2,950 in the fourth quarter.
To the contrary, Morningstar’s Jon Mills predicts a decline in gold prices to $1,820 over the next five years.
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Ronald Francois
Ronald is a senior market strategist at Sigmanomics.com, bringing over a decade of hands-on experience in equity markets and three years of specialized expertise in options trading. Known for his sharp fundamental analysis and deep understanding of macroeconomic trends, Ronald provides readers with actionable insights that bridge the gap between institutional strategy and individual investor needs.
