Gold price prediction: What's the gold rate outlook for May 12, 2025 week
today: What's the outlook for
prices in the week starting May 12, 2025? Gold prices have experienced recent declines following their historic peak levels. Investors interested in gold should monitor international indicators and develop appropriate investment approaches.
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It is essential to understand the factors influencing gold prices and formulate suitable trading decisions based on market conditions. Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial services Ltd explains:
Gold prices remained volatile throughout last week, influenced by a mix of economic signals, geopolitical tensions, and trade-related developments. The Federal Reserve held interest rates steady but warned of rising inflation and labor market risks, casting uncertainty over the U.S.
economic outlook.
Fed Chair Jerome Powell struck a cautious tone, offering no clear guidance on rate changes. Gold briefly dipped as optimism over U.S.-China trade talks reduced demand for safe-haven assets, though prices later rebounded on renewed tariff concerns. President Trump maintained a firm stance on tariffs, further fuelling market unease, while China's central bank cut its reserve requirement ratio by 50bps, with limited market impact.
A key domestic highlight was the escalation between India and Pakistan, which led to a surge in USDINR by over ₹1, supporting domestic gold prices and widening the disparity from international prices.
Additionally, Israel's announcement on Gaza and mixed U.S. economic data—including a slightly lower Services PMI and stronger-than-expected job gains—added to market uncertainty.
Overall, gold prices were driven by global trade dynamics, geopolitical risks, and shifting expectations around U.S.
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monetary policy. Focus this week will be on US CPI, Retail Sales, manufacturing Index and comments from Fed officials and Governor Powell.
Other than that, over the weekend US and Chinese officials met to talk about a possible trade deal in Switzerland hence any updates from there could increase volatility in prices. If a trade deal is announced where tariffs rates are lowered bullion could witness significant pressure or else prices could trade sideways to higher bias.
Sell gold only below Rs 96,000 targeting Rs 94800/93500. Strong resistance is ~96800-97000 any close above the same could take price near the recent peaks of Rs 99,000.
(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)
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