Gold Prices

Gold prices averaged higher in April relative to March on increased safe-haven demand. Gold prices averaged USD 2,000 per troy ounce in April, which was up 4.5% from March’s price and was 3.2% higher than in the same month last year. Meanwhile, on 28 April, gold closed the day at USD 1,990 per troy ounce, which was 0.7% higher than on the same day of the previous month.

Higher average prices in April relative to March were related to investors seeking safety; financial markets remained jittery due to the possibility of problems emerging for more U.S. banks and vulnerabilities in commercial real estate. Moreover, the expectations of a more dovish Fed added momentum to the price rally. In addition, the dollar averaged notably weaker in April than in March, likely buoying prices by making the metal more affordable for holders of other currencies. Finally, central banks likely continued buying gold in April to diversify their international reserves against a backdrop of lingering geopolitical tensions.