Gold steadies as investors buy the dip ahead of US PCE data—can easing Trump tariffs and rising demand fuel a breakout?

Time of India

28-05-2025

Gold prices firm as investors buy the dip ahead of Fed's meeting minutes-
Gold prices firmed up on Wednesday, with spot gold rising 0.4% to $3,312.15 an ounce as investors stepped in to buy after prices dipped below the $3,300 mark the day before. The market is holding its breath ahead of the Federal Reserve's latest policy meeting minutes, scheduled for release later in the day, looking for clues on the future path of U.S. interest rates. Meanwhile,
U.S. gold futures
also gained 0.3%, settling at $3,310.60.
Gold price today
Spot gold rises 0.4% to
$3,312.15
as futures gain on bargain buying and market eyes Fed policy signals
Why did gold prices fall below $3,300 and what's causing the rebound?
In the previous session, gold prices slipped to a low of $3,285.19, which triggered some quick bargain hunting among investors. Jigar Trivedi, senior commodity analyst at Reliance Securities, said, 'Gold is rebounding mainly due to bargain hunting after a sharp drop in the previous session.' This dip below $3,300 encouraged buyers to jump back in, pushing prices higher again.
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How important are the Fed meeting minutes for gold investors?
The minutes from the Fed's May 6-7 meeting are highly anticipated. Although the Fed has kept interest rates steady at 4.25%-4.50% since December, investors want to understand how long this pause might last. The minutes could reveal whether policymakers plan to hold rates steady or signal changes ahead. Han Tan, chief market analyst at Exinity Group, noted, 'Gold could climb on lower-than-expected PCE prints that ease stagflation fears while paving the way for more Fed rate cuts.' The U.S.
PCE inflation data
is due on Friday and is closely watched as the Fed's preferred inflation gauge.
What's the forecast for gold prices in the coming months?
Market watchers are optimistic.
BNP Paribas
projects U.S. gold futures to climb to an average of $3,685 in the third quarter and $3,850 in the fourth quarter. This forecast reflects ongoing concerns about inflation, economic uncertainty, and the possibility of Fed rate cuts later this year.
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How does U.S. political uncertainty affect gold prices today?
Political uncertainty continues to play a role. Comments from U.S. President Donald Trump on trade negotiations have created market volatility. This unpredictability supports gold's safe-haven appeal, as investors tend to flock to gold when tensions rise or markets get unsettled.
How are other precious metals performing alongside gold?
While gold is firming, other metals have mixed results. Spot silver dipped 0.2% to $33.24 an ounce. Platinum rose 0.9% to $1,089.22, showing strength. Meanwhile, palladium slipped 0.4% to $974.28. This mix shows how investors are weighing different metals as economic signals develop.
FAQs:
Q1: What is driving
gold prices today
?
Gold prices are rising due to bargain buying after a sharp fall and investor focus on upcoming Fed updates.
Q2: How can the Fed meeting minutes impact gold?
Fed minutes may hint at future rate cuts, which could boost gold demand and push prices higher.