Gold’s recent price consolidation follows an investment-driven rally sparked by concerns over President Trump’s trade policies.
Though prices have dropped 6.1% from their April peak, they’re still up 30% since Trump’s election. Q1 2025 saw gold investment flows increase 170% year-over-year, with ETF demand reversing from net selling to strong buying.
Meanwhile, traditional demand drivers weakened, with jewelry fabrication falling 19% and central bank purchases down 21%.
The market now questions whether this rally will continue or has run its course, as some early signs show investment demand flattening.
Gold’s future performance likely depends on further developments in trade tensions, potential tax cuts, and Federal Reserve leadership changes.