Gold price prediction: Gold rebounds after hitting one-month low — can it surge to $4,500 by year-end? Here's what Goldman Sachs projects

Time of India

15-05-2025

Gold prices have bounced back after hitting a one-month low, with the spot gold price now around $3,254 per ounce. A weaker U.S. dollar and technical buying helped stabilize the market as investors closely watch upcoming U.S. inflation data and Jerome Powell's speech for signs on future interest rate moves. Analysts highlight the $3,155 support level as critical. With price forecasts ranging from $3,110 to $4,500 depending on market shifts, gold remains a key hedge against uncertainty. This detailed update explores short-term risks, long-term forecasts, and what investors should keep an eye on right now.
Gold prices rebound to $3,254 after hitting a one-month low, driven by a weaker U.S. dollar and investor caution. Markets await Powell's speech and PPI data as key signals for gold's next move amid inflation and rate expectations in 2025.
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Why are gold prices rebounding after hitting a one-month low?
What's the spot gold price now and where's it headed?
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Could inflation and Powell's speech drive short-term gold volatility?
What are the long-term gold price forecasts for 2025?
Is gold still a safe bet for investors in 2025?
What should gold investors watch now?
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Watch the $3,155 support level closely.
Follow the PPI inflation data and Fed speeches.
Pay attention to long-term forecasts, but expect some short-term swings.
Consider geopolitical and economic risks, which can push gold up fast.
FAQs:
Gold prices today have bounced back after slipping to a one-month low earlier on May 15, 2025. The rebound came as the U.S. dollar weakened, giving room for technical buying to kick in. According to Reuters, gold is now trading around $3,254 per ounce, showing signs of recovery as investors shift focus toward key economic updates—especially the upcoming U.S. Producer Price Index (PPI) data and a speech by Federal Reserve Chair Jerome Powell. These two events are expected to provide crucial signals on where interest rates might head next.Earlier in the day, gold had dipped to its lowest point in a month. But by afternoon trading, prices stabilized. A big reason? The U.S. dollar lost strength, making gold—priced in dollars—more attractive to foreign buyers. This also triggered a wave of technical buying, a type of trading based on price patterns and signals.According to analysts at EBC Financial Group, the key level to watch is $3,155 per ounce. If gold falls below that, more declines could follow. For now, the support has held, and the market seems to be holding its breath ahead of Powell's comments and inflation data.As of now, the spot gold price is $3,254 per ounce. That's a healthy jump from the day's earlier low. But markets are not relaxed. Traders are closely watching for the PPI data—set to be released soon—as it may reveal if inflation is cooling. If inflation slows, it could strengthen the case for the Federal Reserve to cut interest rates.If the numbers surprise on the higher side, that might push the Fed to hold rates higher for longer, which typically weighs on gold. In simple terms, lower interest rates support gold, while higher rates hurt it because gold doesn't pay interest.Absolutely. Both Powell's remarks and the PPI report are big market movers. A softer PPI reading—meaning slower inflation—could raise hopes that the Fed might lower interest rates soon. That would typically boost gold prices.But if inflation looks sticky or too strong, the opposite may happen. Reuters noted that markets remain cautious. Traders are trying to read between the lines of every data point and Fed comment, which could mean bumpy trading ahead for gold in the short run.Looking further ahead, forecasts vary but stay largely optimistic.believes gold could hit $3,700 per ounce by year-end, with potential spikes up to $4,500 if global risks rise—like a recession or renewed trade tensions.On the other hand, a Reuters poll suggests a more moderate average of $3,065 per ounce for 2025, with analysts noting uncertainty around the U.S. dollar and global trade conditions as key factors.Meanwhile, CoinCodex expects a short-term dip to around $3,110 by mid-June 2025, but sees a recovery later in the year, possibly reaching $3,925—depending on how the economy and central banks respond to inflation.Gold remains a go-to asset for those looking to hedge against inflation or economic uncertainty. While prices might swing in the short term, many experts still view gold as a reliable long-term store of value.According to EBC Financial Group, keeping an eye on global inflation, central bank moves, and interest rates is key. Investors are also advised to diversify their portfolios and not rely solely on gold or any single asset. The gold market in 2025 is not without risks—but it still holds opportunity for those who stay informed.If you're investing in gold, or thinking about it, keep these in mind:In uncertain times, gold continues to play its part. But smart investing means staying alert, being flexible, and not putting all your hopes in one trend.Gold is trading at $3,254, with strong support seen near $3,155.Inflation data guides interest rate moves, which directly impact gold prices.