Gold Market Update – April 23, 2025:

Gold Market Update – April 23, 2025: Gold Dips as Risk Appetite Improves, but Long-Term Outlook Remains Bullish

Gold prices are pulling back today as investor risk appetite improves following reassurances from U.S. President Donald Trump and a rebound in global equities. The decline comes after a strong rally earlier in the week, driven by safe-haven demand and global growth concerns.

Short-Term Pressure: Easing Fears Shift Focus Away from Gold

Spot gold prices are down nearly 0.6% on the day, currently trading around $2,340 per ounce. The dip follows Trump’s comments that he will not fire Fed Chair Jerome Powell, which has reassured markets and reduced immediate fears of instability. Equities have since bounced back, reducing the need for safe-haven assets like gold.

India Gold Prices Retreat After Record High

In India, gold saw a slight decline after touching the historic ₹1 lakh per 10 grams mark earlier this week. Investors booked profits following the milestone rally, contributing to local price weakness.

ETF Performance Reflects Softness

Gold ETFs are also showing slight pullbacks:

• SPDR Gold Shares (GLD): Down 0.45%

• iShares Gold Trust (IAU): Down 0.38%

• SPDR Gold MiniShares (GLDM): Down 0.41%

Long-Term Bullish Outlook: Recession Risks and Central Bank Buying

Despite the pullback, the broader outlook for gold remains positive. Major banks including JPMorgan and Goldman Sachs project that gold could hit $2,900–$4,000 per ounce by 2026, driven by:

• Rising central bank demand

• Continued economic uncertainty

• Potential for a U.S. recession

• Lower expected interest rates over the medium term

Key Drivers Ahead:

• U.S. Fed Policy Signals: Comments from Fed Governor Adriana Kugler today may shed light on future rate paths, influencing gold sentiment.

• Geopolitical Risks: Ongoing tensions in Eastern Europe and Asia continue to support gold’s appeal as a hedge against uncertainty.

Conclusion: Gold Faces Short-Term Pullback, But Longer-Term Trend Remains Positive

Gold is under mild pressure today as markets embrace risk and equities recover. However, persistent concerns over global growth, dovish monetary policy expectations, and central bank gold accumulation point to a strong long-term case for gold. Traders should watch upcoming economic data and policy signals closely for the next leg in gold's movement.