2025-04-25 13:47:33
As the week wraps up, global markets are experiencing relief and fears are, somehow, dissipating after weeks of continued trade tensions, escalations, and retaliations between the United States and its counterparts.
Gold thrives during periods of heightened risk and uncertainty. In recent weeks, it has been trending higher, reaching targets between $3000 and $3500 - levels previously forecasted by top institutions such as Citi, JPMorgan, and Bank of America.
Trump’s tariff relief efforts, including a 90-day pause and steps toward trade resolutions, brought temporary relief to the markets. As a result, Gold paused its rally, with investors taking a breather from weeks of escalations and retaliations.
On April 22, Gold soared to a record high of $3500 per ounce, making $3500 the new All-Time High Level, driven by investor fears over the weakening of the dollar and economic policies. But this quickly dissipated as global tariff tension eases.
Previous US data also suggests that despite the losing appeal of US markets, US is experiencing a relief after a continued pressure.
Amid a backdrop of political tension with the Fed, rising recession fears, trade tensions, the United States economy just offered a surprisingly upbeat snapshot.
Key data releases showed the US consumer and labor market remain resilient, providing the dollar with a much-needed boost, just what the dollar bulls are looking for.
The dollar is rebounding as recent US data provides support for the greenback. With strong economic prints, we could see further potential upside momentum especially if it breaks above the 100 level.
After tapping the extreme levels above the 40 level, the VIX is currently trending below the 30 level indicating that the market fears are dissipating, and investors are now adjusting.
With the VIX going down, the Dollar rebounding, this suggests that we might see a slowdown on Gold as the markets calm down.
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