After a remarkable $110 surge on 16th April, 2025, gold prices slightly retreated on 17th April, 2025 closing at $3,341.7, a $16 dip from the record high of $3,357.70. This decline wasn’t a sign of weakness but rather a healthy correction, as traders chose to secure profits and reduce risk exposure ahead of the upcoming 3-day Easter holiday weekend.
Similarly, silver prices fell by 1.33%, settling at $32.54, despite this dip, silver has gained over 10% since April 7. However, gold is currently outperforming silver, pushing the gold-silver ratio to 102.15, a level we haven’t seen since May 2020.
The U.S. dollar rose slightly, but this had little effect on gold prices. The dollar index went up to 99.40, but it is still below an important support level it fell through on 16th May. On that day, it dropped 0.88%, from 100.074 to 99.249.
After an impressive $110 surge in gold prices on 16th April, we saw a moderate pullback on 17th April which was a natural response as traders began squaring off their positions ahead of the upcoming three-day holiday weekend. June gold futures closed at $3,341.70, down $16 (0.47%) from 16th April, all-time high of $3,357.70. This slight retreat reflects a risk-off approach, as traders preferred to take profits and reduce exposure in both gold and equities before the break.
Markets are currently cautious due to ongoing U.S - Japan trade talks, which have sparked some cautious optimism. However, Federal Reserve Chair Jerome Powell added uncertainty, stating that the Fed is not rushing to cut interest rates. Powell also highlighted that President Trump’s tariff policies are larger than expected, potentially leading to higher inflation and slower economic growth. He warned that inflation from tariffs could be temporary but might persist. This has lowered market expectations for a rate cut in May, reducing the likelihood from 14.7% to 13.2%. As a result, the recent dip in gold prices is seen as a healthy correction following a major rally. However, uncertainty around U.S. trade and monetary policy continues to weigh on the market, with traders remaining cautious about future movements, especially as the Fed signals no immediate rate cuts.
Let’s see how things shape up post-holiday.