International News

Gold declines and investors opt for dollar, prioritize liquidity

Published

11 months ago

April 8, 2025

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Gold, often considered the quintessential safe-haven asset, witnessed a notable retreat on Monday, slipping over 2% from last week’s record highs. This downturn came as investors, rattled by escalating trade tensions between the U.S. and China, shifted their focus towards the U.S. dollar and other safe-haven currencies like the Swiss Franc and Japanese Yen. The move reflects a broader market recalibration in the face of renewed economic and geopolitical uncertainties.

Spot gold prices fell by 2.4%, settling at $2,963.19 an ounce by early afternoon ET. During the session, the precious metal touched a near four-week low of $2,955.89. Meanwhile, U.S. gold futures also closed 2% lower at $2,973.60. This decline follows an all-time high of $3,167.57 reached just last Thursday, underscoring the volatility gripping the commodities market.

Investor sentiment shifted in favor of the U.S. dollar, which rebounded from a six-month low. A stronger dollar makes gold more expensive for holders of other currencies, putting downward pressure on its price. This change in preference indicates that, during times of acute uncertainty, investors may prioritize liquidity and ease of access — qualities traditionally associated with the dollar — over long-term value storage like gold.

The gold market is currently experiencing significant stress, largely driven by liquidity concerns and speculative activity. According to Bart Melek, head of commodity strategies at TD Securities, margin covering by traders — the need to cover losses on leveraged positions — has added to gold’s downward pressure. This phenomenon typically accelerates declines as investors sell assets to raise cash.

The primary catalyst for the market turmoil is the intensification of the U.S.-China trade conflict. President Donald Trump has floated the possibility of imposing a 50% tariff on Chinese imports if Beijing fails to roll back its own retaliatory tariffs. Meanwhile, speculation that the U.S. administration might pause tariffs for 90 days on all nations except China was dismissed by the White House as “fake news,” adding to the confusion and uncertainty.

Despite the short-term dip in gold, the broader macroeconomic backdrop continues to support a bullish outlook for the precious metal. Futures markets are now pricing in approximately 120 basis points of rate cuts from the U.S. Federal Reserve by the end of the year. The probability of a rate cut as early as May has also risen to 37%. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, thereby boosting their attractiveness.

Analysts remain optimistic about gold’s long-term potential. The metal continues to benefit from robust central bank demand and remains a favored hedge during periods of financial instability and geopolitical strain. The recent correction may be seen more as a pause or consolidation phase rather than a reversal of trend, particularly given the fragile state of the global economy.

Related Topics:2025 Gold Market nationalnews

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International News

Oroarezzo 2026, with Italian Exhibition Group, Manufacturing Explores New Markets

International focus, evolving export geographies and a high-level global congress to shape new tools and strategies for Italian gold and jewellery companies from 9–12 May in Arezzo.

Published

1 day ago

February 24, 2026

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Quality business for foreign markets and high-level tools for companies will be the two key levers at the next edition of Italian Exhibition Group’s Oroarezzo event, scheduled to take place from 9th to 12th May at Arezzo Fiere e Congressi.

Between 2024 and 2025, the weight of the main Italian gold and jewelry export markets was redistributed in favor of the European Union, the United Arab Emirates and Switzerland, with the United States substantially holding up. Demand from Turkey halved, even though it was still the top destination for Made in Italy products.

IEG, together with the Italian Trade Agency (ITA), is amassing a delegation of hosted buyers for the jewelry manufacturing markets of interest that will exceed the one-to-one buyer/exhibitor ratio.

A key new feature at the upcoming edition will be the first international congress in Arezzo, to be held on Monday 11th, entitled “Global markets, geopolitical scenarios and concrete tools for business growth”. The event will focus on the prospects opened by the free trade agreement between the European Union and India, as well as on France and Switzerland — homes of the big brands — supply chains between the United States and Canada, and the opportunities of the African continent.

EXPORTS HAVE CHANGED, NOW BUSINESS AND TOOLS FOR COMPANIES

“Markets change, but interest in Italian gold and jewelry does not fade. Therefore, together with the Italian Trade Agency, we are working on compiling a high-profile delegation with the utmost attention to foreign markets that are still important for Arezzo manufacturing, like the United States, and to those, albeit a minority, that are livelier, such as Poland, Canada or China.

A collective effort which we are keeping associations, such as the national Federorafi, updated on through the Goldsmith Council, as well as local institutions, from the Municipality to the Chamber of Commerce and the Province, because Oroarezzo’s growth is a strategic IEG priority.

Our job, however, does not end with the encounter between market supply and demand. IEG is convinced that companies must also face current challenges with enabling experiences, such as data sharing and analysis. Which translates into a high-profile international conference. It is not the time to wait for change, we must build it together,” said Matteo Farsura, Head of IEG’s jewelry trade shows.

THE INCOMING STRATEGY

At last year’s edition, Oroarezzo saw the participation of over 370 exhibitors and around 400 hosted buyers thanks to the collaboration program with ITA.

For the coming edition, Italian Exhibition Group is working to exceed this proportion, with a predominant share of buyers operating in the US and UAE markets. IEG and ITA will also strengthen European representation and adopt a targeted approach to the Asian market, particularly Japan and China.

New markets in the Mercosur area will include Brazil, Mexico and Panama. Guests will be welcomed with a networking aperitif at the Fraternita dei Laici building on the opening day, along with curated experiences designed to highlight the city and its cultural heritage.

VALUE CHAINS, TARIFFS AND FREE TRADE: THE INTERNATIONAL CONGRESS

The first international conference will provide strategic insight into key areas for Italian gold and jewelry manufacturing exports. The initiative is a joint decision between IEG and the national Federorafi Confindustria to equip the Arezzo district with effective tools to interpret global scenarios and emerging opportunities.

The program will begin with an analysis of the medium- and long-term prospects resulting from free trade agreements currently being ratified between the European Union and the Mercosur area for the Italian gold and jewelry industry.

It will then examine the opportunities offered by India following the signing of the trade treaty with Brussels in New Delhi on 27th January for the progressive elimination of customs duties.

Further themes will include the decision-making centers of major jewelry brands between France and Switzerland, the reorganization of supply chains between the United States and Canada, and the opportunities presented by Africa as an initial commercial entry point for the gold and jewelry sector.