From $2623 to $3500: Gold’s Impressive First-Half Rally and What Comes Next

With the first half of 2025 almost behind us, let’s take a look at how the price of gold has moved in this period. By the beginning of this year, bullion was up to $2,623. The area was monitored again over the next three days, but never returned to this level. The price remained stable, with a significant and regular increase.

On April 22, 2025, it hit an all-time high of $3,500. Then came May 6, 2025, the gold price had another go at equaling its all-time-high but was unsuccessful. So far, its price action has been unable to break this ceiling, and for the time being, it has found a strong support at $3,220.

As you can see, the gold movement was definitely a profitable ride for traders and investors who took long positions. However, many factors influence this movement.

In these times of global economic uncertainty, investors look to gold as a safer asset. They don’t view the dollar as stable and safe, which is part of the reason gold prices have skyrocketed.

The eventual strengthening of the US dollar index will continue to put significant down pressure on gold prices. The dollar index has been falling since the start of the year, which has helped boost gold prices. The DXY moves based off of several different economic indicators, such as GDP and unemployment.

One of the hottest topics on the market right now, and one that investors are closely monitoring, is the trade war between the US and China. It serves as a warning for investors to adjust their positions in the market. 

Initially, it was clear that investors wanted to secure their positions by choosing gold as one of the instruments to diversify their assets.

Investors looking forward to the next major gold bull run are intensely studying gold’s strong support at $3,220. If this level holds, the price of gold is poised to continue rallying and move upward once again.

On a global level, cooling the tension in the US-China trade war will also contribute to the decline in gold prices.

In general, gold has a healthy uptrend. This is evident by simply looking at the price sustaining at a consistent level above the EMA 20, which has always been its dynamic support.

However, we must be mindful of sudden movements that are bound to happen once tensions are lowered in the US–China trade war.