Gold prices surge over 16% this year, driven by growing economic uncertainty and trade policy concerns. Exchange-traded funds (ETFs) saw a significant increase, adding 23 tonnes of gold in a single trading session—the largest one-day gain since 2022. According to ING’s commodity analysts, Warren Patterson and Ewa Manthey, this surge reflects strong investor confidence in gold as a safe-haven asset.
Key Takeaways for Gold Price:
- Gold-backed ETFs recorded a net inflow of 155 tonnes in Q1 2025, the highest since September 2023.
- The rally is largely fueled by uncertainties in US trade policies and global economic instability.
- Current ETF holdings remain below the 2020 peak, indicating further potential inflows.
- Gold prices climbed 27% last year, showcasing a continued upward trend.
Market Context: Trade policy impact on gold price
The global economy remains volatile, with trade uncertainties playing a crucial role in gold price movements. President Trump’s unpredictable trade policies have intensified market concerns, prompting investors to seek safer assets. Analysts predict that ongoing tariff uncertainties will sustain gold’s bullish momentum throughout 2025.
Technical Insights: Gold Price Surge and Resistance Levels
Gold-backed ETFs have consistently added to their holdings, reinforcing bullish sentiment. The total ETF gold holdings in Q4 2024 remained nearly unchanged, despite price fluctuations. With inflows reaching 155 tonnes in Q1 2025, experts believe prices may continue to rise if the trend persists. Resistance levels are expected around $2,200 per ounce, with strong support near $2,000.
Expert Insights and Market Outlook
“We anticipate further additions to gold ETFs, given the current holdings are still below the 2020 peak,” ING analysts noted. If the trend of inflows sustains, it will provide additional price support. With trade tensions remaining high, gold’s appeal as a safe-haven asset is expected to strengthen.
Conclusion
Gold prices surge impressive rally, fueled by ETF inflows and trade policy concerns, highlights its strong demand among investors. If uncertainties persist, gold prices may continue their upward trajectory. Stay updated with the latest market trends at Daily Gold Signal. For more detailed market insights, visit Daily Gold Update.
