In the past week, gold saw contrasting movements in the U.S and Australia respectively. As of 7th April 2025, gold in US dollar terms was valued at US$2986.95 an ounce in comparison to US$3125.25 an ounce on 31st March 2025, falling by 4.5%. Gold in Australian dollar terms was valued at AU$5041.70 as of 7th April 2025 up 1.76% from last week when it traded at AU$4954.26 on 31st March 2025.
We believe these contrasting movements in gold prices are driven by changes in trade policy in the US and their impact on currency fluctuations. President Trump’s announcements of a 50% levy on Chinese imports and increased duties on imports from Canada and the EU to address trade imbalances, led to global recessionary fears. This caused investors to seek refuge in the US dollar, traditionally viewed as a safe haven in times of global economic uncertainties. A stronger dollar typically diminishes the appeal of gold, which led to gold decreasing due to increased purchasing costs for investors in countries on the opposite end of the strengthening US dollar.
Conversely, the stronger US dollar caused a price increase in gold in Australia, as the AUSTRALIAN DOLLAR fell further, even going below 60 cents. Market expectations of significant rate cuts by the RBA in response to the escalating trade tensions further led to a weaker Australian dollar.
If these trade tensions continue, the demand for gold as a safe-haven asset may increase despite a strengthening dollar, leading to a continued bull run for gold. Additionally, it will also be important to assess the Fed’s approach to interest rates amid current geopolitical conditions to determine the price movements in gold in the near and long term.
Despite the positive impact on the price of gold in Australia, investor fears stemming from new tariff policies in the US fed into the metals and mining equities market in Australia. The ASX All Ordinaries Gold Index dropped by 500 points to 10,481 points.
Among the moves, Bellevue Gold attracted attention as it extended its voluntary suspension on 4th April 2025. Since entering a trading halt over a week ago, Bellevue Gold reported its March quarter production of ~25,700 ounces of gold. This was a disappointing result when the market expected a significant upgrade for the second half of the 2025 financial year.
According to the company: “Rapid mining rates due to ramp up also led to some dilution of grade. Mining rates exceeded processing rates for the quarter resulting in a ROM stockpile of >35kt at the end of the quarter. As a result, head grades delivered to the processing plant were lower than expected in March 2025 and quarterly production was approximately 25.7koz.”
Additionally, the company’s share price suffered a steep fall in the past few weeks, after increasing its AISC guidance for the year and downgrading their production guidance to 150,000-165,000 ounces from 165,000-180,000 ounces. These factors together dampen investor outlook for the company, which may lead to further selling pressure once Bellevue Gold releases its updated outlook and operating plans.