Gold prices surged past $3,500 per ounce on April 22, 2025, due to a weakening US dollar, escalating trade tensions between the US and China, and President Donald Trump’s criticism of Federal Reserve policies.
By 9:21 a.m. EDT, spot gold had risen by 0.5% to $3,440.51 per ounce after reaching a peak of $3,500.05. Meanwhile, US gold futures increased by 0.9% to $3,454.60.
Fawad Razaqzada, market analyst at City Index, noted, “Trade tensions create an economic fog, keeping gold bulls in control.” Key factors include:
- Trade War Fears: US tariffs and China’s responses heighten market uncertainty, boosting gold’s safe-haven appeal.
- Dollar Weakness: Trump’s attacks on Fed chief Jerome Powell and demands for rate cuts have weakened the dollar, supporting gold prices.
- Central Bank Buying: Gold has risen over 30% in 2025, fueled by global demand.
Daniel Ghali from TD Securities pointed out that tariffs are driving the depreciation of Asian currencies, which in turn is boosting gold purchases. With gold’s Relative Strength Index (RSI) at 79, indicating that the market is overbought, traders are waiting for speeches from Federal Reserve officials for hints about monetary policy.
Read: Gold Hits Record High as Dollar Weakens Amid Trump Tariff Tensions, Fed Feud
In the meantime, silver increased by 0.3% to $32.63 per ounce, platinum remained steady at $962.36, and palladium rose by 1.4% to $940.
