Gold price prediction: What’s the gold rate outlook for May 5, 2025 week – should you buy or sell?

Gold rate today: Focus this week shifts to Services PMI data from major economies and Fed policy meeting. (AI image)

Gold price prediction: What’s the outlook for gold prices in the week starting May 5, 2025? After touching record highs recently, gold has seen dips in recent days. What are the global cues that investors of gold should watch out for and what should their strategy be for gold? Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial services Ltd explains:
Last week, gold prices posted their worst weekly decline in over two months, falling back from the recent all-time high of $3,500, as easing trade tensions and mixed U.S. economic signals reduced safe-haven demand. The U.S. initiated overtures toward renewed trade talks with China, and Beijing responded by exempting some American goods from retaliatory tariffs—moves seen as steps toward de-escalation.
Additionally, President Trump introduced relief measures on auto-related tariffs, offering temporary easing for both domestic and international manufacturers. These developments shifted investor interest toward the dollar and bonds, pressuring gold. On the geopolitical front, the U.S.-Ukraine agreement granting preferential access to key minerals was seen as a strategic move against Russia, while President Putin announced a brief ceasefire in Ukraine around Victory Day, with Kyiv.
Economic data from the U.S. was largely disappointing—GDP contracted by 0.3%, while consumer confidence and ADP private payroll figures also came in below expectations, underscoring concerns about economic momentum. Toward the end of the week, U.S. labor data painted a mixed picture, failing to provide clear direction for markets. While job openings fell sharply, a drop in layoffs suggested the labor market remains somewhat resilient.
However, the overall tone of U.S. data leaned negative, reinforcing caution among investors. Despite a mild rebound in gold prices late in the week, market participants are focused on the geo political development which could continue to weigh on the market.
Focus this week shifts to Services PMI data from major economies and Fed policy meeting where Governor Powell’s statements will be very important to watch for. UK, China and Japan will also remain shut at the start of this week, on the back of public holiday
Strategy for gold:
View sideways to higher. Sell, for target of Rs 90,500-90,000; Resistance: Rs 93,500-94,000
(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)