Gold price prediction today: Where are gold rates headed on May 27, 2025 and in the near-term?
Gold may fall further on easing trade tensions following President Trump delaying the European tariff to July 9. (AI image)
Gold price prediction today: Gold rates have been fluctuating in the last few weeks and no clear upside or downside is obvious. Global events, such as Donald Trump's tariff moves and geopolitical conflicts are shaping the movement of gold prices on a daily basis.
In such uncertain scenarios, what should investors do? What's the outlook on gold prices in the near term?
Praveen Singh, Senior Fundamental Research Analyst- Currencies and Commodities at Mirae Asset Sharekhan shares his views:
Gold Performance:
Spot gold rallied sharply in the week ending May 23 on soaring safe haven demand due to the rating agency Moody's downgrading the US credit rating on May 17 and heightened economic uncertainty due to the US President imposing a 50% tariff on European goods from June 1.
The US President Trump has delayed the 50% EU tariffs to July 9.
Last week, US treasuries cratered, and the US Dollar Index slumped on worries over the state of the US economy. Spot gold recorded a huge weekly gain of 4.84% as it closed at $3357; it was up by 1.89% on Friday.
Yesterday, the US markets were closed to observe Memorial Day Holiday, while the London market is observing Spring Bank Holiday.
Tariff developments:
On May 23, President Trump said that he would be imposing a 50% tariff on European goods starting June 1 as he felt that US-Europe talks on trade deals were not going anywhere.
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
コンピュータでゲームをするのが好きなら、この新しいアドベンチャーゲームは必ずプレイすべきです。
アドベンチャーゲーム
ゲームをプレイ
Undo
Trump's tariff threats were not limited to Europe only. In fact, he also threatened Samsung and Apple with a 25% tariff if their products are not made in the US. Later, on May 25, Trump walked back on tariff threats to Europe as he extended the deadline to July 9 citing positive talks with European Commission President Ursula von der Leyen who said that Europe is ready to advance talks swiftly and decisively.
US Dollar Index and yields:
Deepening concerns over the US economic outlook amid tariff uncertainty have weighed heavily on the US bonds and the Dollar Index.
Both ten-year and thirty-year US yields surged past the post-reciprocal tariff levels last week. On May 22, ten-year US yields soared to 4.62%, highest since February 2025 before backing off on Trump calling for a 50% tariff rate for Europe. Similarly, 30-year yields surged to 5.15%, highest since October 2023.
Ten-year and thirty-year yields closed at the highest weekly levels since January 1 and October 27 respectively.
The US Dollar Index fell nearly 2% last week to end at 99.11, the lowest daily close since April 28, and is currently at 99.03 is down by around 0.07%. The Index is threatening to breach the post reciprocal low of 97.92 reached on April 21.
ETF holdings:
Total known global gold ETF holdings stood at 87.86 MOz as of May 23, down nearly 2% from the peak level of 89.77 MOz seen on April 21; holdings fell for the fifth straight week to the lowest level since April 8.
Nonetheless, holdings are still up over 6% YTD.
Weekly CFTC gold data:
Hedge Fund managers have increased their bullish gold bets by 7,741 bet-long positions to 118,615, the most bullish position in four-weeks, as the short-only total fell to the lowest in eight weeks.
Upcoming data and events:
Major US data and reports to be released this week include Conference Board Consumer Confidence (May), FOMC minutes (May 7 meeting), GDP (1Q secondary estimate), real personal spending (April), PCE price Index (April) - the Fed's preferred gauge of inflation and University of Michigan Sentiment (May Final) and short-term and long-term inflation expectations.
Gold Price Outlook:
Gold may fall further on easing trade tensions following President Trump delaying the European tariff to July 9. On Monday, the metal had swung between $3324 and $3358, relatively a narrower range, as New York and London markets were on holiday.
Near-term support is seen at $3311/$3292 followed by $3275 and $3250. This week, if no further developments on tariff fronts, is likely to be marked with data driven volatility, as the US economic calendar is quite busy.
Easing trade tensions may push the prices further down.
Traders may sell with stoploss above $3365-$3371 resistance zone. However, downside may be somewhat limited -- may be up to $3292/$3275 or so, on concerns due to erratic trade policies of the US. A correction in gold prices will then give an opportunity to go long on the yellow metal with stoploss below $3250.
On the upside, a breach of $3365-$3371 resistance zone will open the way for $3435. Above $3435, the all-time high of $3500 will come into the focus.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
42 minutes ago
- New Indian Express
Vance says Musk making a 'huge mistake' in going after Trump but also tries to downplay the attacks
BRIDGEWATER: Vice President JD Vance said Elon Musk was making a 'huge mistake' going after President Donald Trump in a storm of bitter and inflammatory social media posts after a falling out between the two men. But the vice president, in an interview released Friday after the very public blow up between the world's richest man and arguably the world's most powerful, also tried to downplay Musk's blistering attacks as an 'emotional guy' who got frustrated. 'I hope that eventually Elon comes back into the fold. Maybe that's not possible now because he's gone so nuclear,' Vance said. Vance's comments come as other Republicans in recent days have urged the two men, who months ago were close allies spending significant time together, to mend fences. Musk's torrent of social media posts attacking Trump came as the president portrayed him as disgruntled and 'CRAZY' and threatened to cut the government contracts held by his businesses. Musk, who runs electric vehicle maker Tesla, internet company Starlink and rocket company SpaceX, lambasted Trump's centerpiece tax cuts and spending bill but also suggested Trump should be impeached and claimed without evidence that the government was concealing information about the president's association with infamous pedophile Jeffrey Epstein. 'Look, it happens to everybody," Vance said in the interview. 'I've flown off the handle way worse than Elon Musk did in the last 24 hours.' Vance made the comments in an interview with ' manosphere' comedian Theo Von, who last month joked about snorting drugs off a mixed-race baby and the sexuality of men in the U.S. Navy when he opened for Trump at a military base in Qatar. The vice president told Von that as Musk for days was calling on social media for Congress to kill Trump's 'Big Beautiful Bill,' the president was 'getting a little frustrated, feeling like some of the criticisms were unfair coming from Elon, but I think has been very restrained because the president doesn't think that he needs to be in a blood feud with Elon Musk.' 'I actually think if Elon chilled out a little bit, everything would be fine," he added.
NDTV
an hour ago
- NDTV
Gangster Goldy Brar, 4 Others Charged In Gurugram Bomb Attack Case
New Delhi: The National Investigation Agency (NIA) has chargesheeted five accused, including Canada-based Khalistani terrorist Goldy Brar, in the 2024 case relating to bomb attacks at two clubs in Gurugram, officials said on Saturday. The NIA has booked Satinderjit Singh alias Goldy Brar, along with Sachin Taliyan, Ankit, Bhawish and US-based Randeep Singh alias Randeep Malik, under various sections of the Bharatiya Nyaya Sanhita (BNS), Arms Act, Explosives Substance Act, and the Unlawful Activities (Prevention) Act in its charge sheet filed before a court in Panchkula on Friday, they said. Barring Brar and Malik, all others have been arrested in the case, they said. The NIA had found the accused to be involved in a conspiracy to target the Warehouse Club and the Human Club in Sector 29 in Gurugram, Haryana, with bombs. It was part of banner terrorist outfit Babbar Khalsa International's (BKI) larger conspiracy to spread communal disharmony and disrupt peace in Haryana and neighbouring regions by unleashing violence, according to an official statement. The attack, perpetrated by members and cadres of the proscribed BKI, took place on December 10, 2024, it said. The NIA investigations later revealed that the "deep-rooted" terror conspiracy was hatched by Goldy Brar and his associates, said the statement issued by the probe agency. According to the NIA investigations, the terror syndicate is actively involved in extorting money, raising terror funds, procuring explosives and arms and ammunition, and promoting terror amongst the common people to threaten the integrity, security (including economic security) and sovereignty of the country.
NDTV
an hour ago
- NDTV
What It Would Take To Convert Qatari Jet Into Air Force One To Safely Fly Trump
Washington: President Donald Trump really wants to fly on an upgraded Air Force One - but making that happen could depend on whether he's willing to cut corners with security. As government lawyers sort out the legal arrangement for accepting a luxury jet from the Qatari royal family, another crucial conversation is unfolding about modifying the plane so it's safe for the American president. Installing capabilities equivalent to the decades-old 747s now used as Air Force One would almost certainly consign the project to a similar fate as Boeing's replacement initiative, which has been plagued by delays and cost overruns. Air Force Secretary Troy Meink told lawmakers Thursday that those security modifications would cost less than $400 million but provided no details. Satisfying Trump's desire to use the new plane before the end of his term could require leaving out some of those precautions, however. A White House official said Trump wants the Qatari jet ready as soon as possible while adhering to security standards. The official, who spoke on the condition of anonymity, did not provide details on equipment issues or the timeline. Trump has survived two assassination attempts, and Iran allegedly also plotted to kill him, so he's well aware of the danger he faces. However, he seems willing to take some chances with security, particularly when it comes to communications. For example, he likes to keep his personal phone handy despite the threat of hacks. He boasted this week that the government got the jet "for free," saying, "We need it as Air Force One until the other ones are done." Here's a look at what it would take to make the Qatari plane into a presidential transport: What Makes A Plane Worthy Of Being Air Force One? Air Force One is the call sign for any plane that's carrying the president. The first aircraft to get the designation was a propeller-powered C-54 Skymaster, which ferried Franklin D. Roosevelt to the Yalta Conference in 1945. It featured a conference room with a bulletproof window. Things are a lot more complicated these days. Boeing has spent years stripping down and rebuilding two 747s to replace the versions that have carried presidents for more than three decades. The project is slated to cost more than $5.3 billion and may not be finished before Trump leaves office. A 2021 report made public through the Freedom of Information Act outlines the unclassified requirements for the replacement 747s under construction. At the top of the list - survivability and communications. The government decided more than a decade ago that the new planes had to have four engines so they could remain airborne if one or two fail, said Deborah Lee James, who was Air Force secretary at the time. That creates a challenge because 747s are no longer manufactured, which could make spare parts harder to come by. Air Force One also has to have the highest level of classified communications, anti-jamming capabilities and external protections against foreign surveillance, so the president can securely command military forces and nuclear weapons during a national emergency. It's an extremely sensitive and complex system, including video, voice and data transmissions. James said there are anti-missile measures and shielding against radiation or an electromagnetic pulse that could be caused by a nuclear blast. "The point is, it remains in flight no matter what," she said. Will Trump Want All The Security Bells And Whistles? If the Qatari plane is retrofitted to presidential standards, it could cost $1.5 billion and take years, according to a U.S. official who spoke on the condition of anonymity to provide details that aren't publicly available. Testifying before Congress this week, Meink discounted such estimates, arguing that some of the costs associated with retrofitting the Qatari plane would have been spent anyway as the Air Force moves to build the long-delayed new presidential planes, including buying aircraft for training and to have spares available if needed. In response, Rep. Joe Courtney, D-Conn., said that based on the contract costs for the planes that the Air Force is building, it would cost about $1 billion to strip down the Qatar plane, install encrypted communications, harden its defenses and make other required upgrades. James said simply redoing the wiring means "you'd have to break that whole thing wide open and almost start from scratch." Trump, as commander in chief, could waive some of these requirements. He could decide to skip shielding systems from an electromagnetic pulse, leaving his communications more vulnerable in case of a disaster but shaving time off the project. After all, Boeing has already scaled back its original plans for the new 747s. Their range was trimmed by 1,200 nautical miles, and the ability to refuel while airborne was scrapped. Paul Eckloff, a former leader of protection details at the Secret Service, expects the president would get the final say. "The Secret Service's job is to plan for and mitigate risk," he said. "It can never eliminate it." If Trump does waive some requirements, James said that should be kept under wraps because "you don't want to advertise to your potential adversaries what the vulnerabilities of this new aircraft might be." It's unlikely that Trump will want to skimp on the plane's appearance. He keeps a model of a new Air Force One in the Oval Office, complete with a darker color scheme that echoes his personal jet instead of the light blue design that's been used for decades. What Happens Next? Trump toured the Qatari plane in February when it was parked at an airport near Mar-a-Lago, his Florida resort. Air Force chief of staff Gen. David Allvin was there, too. The U.S. official said the jet needs maintenance but not more than what would be expected of a four-engine plane of its complexity. Sen. Tammy Duckworth, an Illinois Democrat on the Senate Armed Services Committee, said it would be irresponsible to put the president and national security equipment aboard the Qatari plane "without knowing that the aircraft is fully capable of withstanding a nuclear attack." "It's a waste of taxpayer dollars," she said. Meanwhile, Boeing's project has been hampered by stress corrosion cracks on the planes and excessive noise in the cabins from the decompression system, among other issues that have delayed delivery, according to a Government Accountability Office report released last year. Boeing referred questions to the Air Force, which said in a statement that it's working with the aircraft manufacturer to find ways to accelerate the delivery of at least one of the 747s. Even so, the aircraft will have to be tested and flown in real-world conditions to ensure no other issues. James said it remains to be seen how Trump would handle any of those challenges. "The normal course of business would say there could be delays in certifications," she said. "But things seem to get waived these days when the president wants it." (This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
