Cassiar Gold Corp. (TSXV: GLDC, OTCQX: CGLCF)
Revitalizing the Cassiar Gold District in British Columbia, Canada
The price of gold hit a new all-time high of over $3,350 per ounce on Thursday (17 April 2025) and has risen a whopping 25% since the start of the year as a result of geopolitical and economic concerns.
With the market closed for the Easter holiday on Friday, gold prices have accumulated a 2.5 per cent gain over the four trading days this week.
While gold still looks overbought, analysts believe the precious metals market remains in a solid uptrend.
David Morrison, senior market analyst at Trade Nation, described gold’s price action this week, which included Wednesday’s $100 rally, as a blowout. In its latest report, Morrison noted that gold looks heavily overbought, with the daily chart MACD reaching levels seen in April 2011, just before the last price peak. But that doesn’t mean gold prices will start pulling back, as the dollar is falling to a three-year low of 99.49.
Christopher Vecchio, head of futures and foreign exchange at Tastylive.com, says gold will continue to benefit from further weakness in the dollar. While the dollar is not expected to lose its reserve currency status anytime soon, Trump’s erratic trade policies have weakened the U.S.’s position in global markets.
There is no alternative to the dollar as a reserve currency at this stage, and gold is playing its part. Vecchio believes that any fall in gold in this environment is a buying opportunity.
Currency analysts at Brown Brothers Harriman also expect the dollar to weaken further, which will continue to support gold’s unprecedented rally.
Lukman Otunuga, senior research analyst at FXTM, noted that gold’s rally above $3,350 has pushed the price up nearly 28 per cent this year, surpassing last year’s 24 per cent gain. Fears of a global recession due to trade tensions between the U.S. and China have attracted investors into the precious metal as a safe-haven. If $3,300 proves to be a reliable support level, prices could push towards the next psychological level of $3,400 or even higher.
Ole Hansen, head of commodities strategy at Saxo Bank, said gold should experience a correction of $200-$300, but not now, as there are so many outstanding issues on the table, and Trump’s recent attacks on Powell have fuelled concerns about risk in the bond market.
Meanwhile, central banks, especially China’s, have been increasing their gold reserves. China has increased its gold reserves for five consecutive months, reflecting a strategic move to diversify its dollar-denominated assets amid geopolitical tensions.
Gold exchange-traded funds (ETFs) saw large inflows in the first quarter of 2025, the strongest demand since early 2022, signalling strong investor interest in gold as a hedge against inflation and economic uncertainty.
The results of this week’s Kitco News gold survey show that 10 analysts, or 63 per cent of the analysts who participated in the survey, expect gold prices to continue to rise in the coming week, while 195 retail investors who participated in the online survey (63 per cent) expect gold prices to move higher next week.
