NOIDA (CoinChapter.com) — Gold prices soared to a record high of $3,500 per ounce on April 22, 2025, marking one of the most dramatic safe-haven rallies in recent history. The yellow metal has surged nearly 47% over the past year, outperforming most major asset classes, including U.S. equities and cryptocurrencies.
According to Reuters, the rally was driven by mounting concerns over global economic stability, an accelerating decline in the U.S. dollar index, which recently hit a three-year low, and rising geopolitical tensions sparked by President Donald Trump’s renewed trade confrontation with China.
Moreover, President Trump’s public attacks on Federal Reserve Chair Jerome Powell for failing to aggressively cut interest rates further rattled investors, pushing them toward gold and away from riskier assets. Wall Street responded negatively, with major indexes falling by more than 2%, while tech-heavy stocks led the decline.
Meanwhile, the crypto market failed to offer its usual hedge-like performance: Bitcoin fell 4.5% to $92,000, as traders appeared to rotate capital into more traditional safe havens. According to Cointelegraph and on-chain data, this marked the steepest single-day BTC decline since February.
A growing lack of confidence in fiat currencies has also fueled gold’s rally. Central banks—particularly China’s—have accumulated gold reserves, with the People’s Bank of China adding 15 tonnes in late 2024 alone, per World Gold Council data.
As the global financial environment grows increasingly unstable, with 90 basis points in Fed rate cuts expected by year-end, investors are leaning hard into gold as a non-yielding but reliable store of value. Still, the market’s message is clear: gold is returning to the top.
Gold Price Retreats From ATH
Gold (XAU/USD) has broken into uncharted territory, confirming a fresh all-time high of $3,500 on Apr. 22. The yellow metal surged by over 18% since the beginning of April and is now in clear price discovery mode, with no historical resistance levels to cap further upside.
The breakout above the previous ceiling near $3,220 triggered a steep rally, fueled by macroeconomic concerns and aggressive capital rotation into safe-haven assets. The daily chart shows that gold has comfortably cleared the 0.382 Fibonacci level at $3,216 and trades above the 0.5 level at $3,415. The 20-day EMA (red) near $3,220 now acts as support for the XAU USD pair.
The next visible resistance lies near $3,612, followed by the 0.786 Fib level around $3,898. Flipping the immediate resistance would target the zone just below $3,900. RSI remains elevated at 78, showing short-term overheating, but still within range for continuation if momentum sustains.
On the downside, gold has initial support near $3,220. Losing this level would shift focus toward $2,970, which aligns with the 0.236 Fib retracement of the current move. All key exponential moving averages (20/50/100/200-day EMAs) remain in bullish alignment.
The sustained uptrend and clean break into a price vacuum suggest institutional interest remains strong. As macro volatility persists and DXY trends lower, gold’s technical structure signals more upside ahead—especially if real yields fall further and geopolitical tensions deepen. The absence of prior price ceilings makes gold’s current rally one of the clearest price discovery phases since 2020.
Dollar Decline, Trade Turmoil, and Policy Missteps Fuel Surge
Gold’s rally past the $3,500 per ounce mark might be the culmination of multiple converging macroeconomic pressures, foremost among them being the continued erosion of the U.S. dollar. The DXY index, which measures the dollar’s strength against a basket of global currencies, dropped to a three-year low this week.
The devaluation made gold more attractive to foreign investors, as it reduced the relative cost of purchasing the metal in other currencies. As a non-yielding asset priced in dollars, gold becomes more appealing when the dollar depreciates, especially amid expectations of up to 90 basis points in Federal Reserve rate cuts this year.
This political interference has amplified expectations of monetary loosening. Futures markets now price in as much as 90 basis points in rate cuts by the end of 2025, making non-yielding assets like gold more attractive.
Schiff, an outspoken proponent of gold, emphasized in a viral post that the metal is “not just any commodity, it’s money,” calling the rally a signal of the dollar’s waning dominance. Other voices, including FriedrichBTC, pointed out that while gold has surged, assets like Bitcoin still offer greater liquidity and accessibility. However, BTC’s recent dip suggests gold currently holds the stronger safe-haven appeal.
Mike Alfred added a tongue-in-cheek jab, saying he “shaved a bit off [his] gold bar at Starbucks” as payment, mocking the impracticality of gold in modern commerce.
Still, the data reflects that institutional and central bank demand for gold is climbing. With over 1,000 tonnes added to global reserves in 2024 and continued buying in 2025, the metal’s role as a macro hedge appears far from obsolete, regardless of how digitally inclined the next generation of traders may be.
