On May 22, 2025, gold prices edged lower during the New York afternoon session as investors turned more cautious. Spot gold briefly climbed to $3,345.33 per ounce—its highest in two weeks—before retreating on profit-taking, closing at $3,297.33, down about 0.5% on the day. Gold futures followed suit, settling at $3,294.70 per ounce.
A stronger U.S. dollar weighed on the metal. The dollar index rose 0.3%, recovering from losses driven by a recent U.S. credit rating downgrade. A firmer dollar tends to make gold more expensive for non-dollar buyers, dampening global demand. Meanwhile, U.S. equity markets remained resilient, with the S&P 500 nearing record highs, prompting a shift of capital into risk assets and slightly easing demand for safe havens like gold.
Despite this, bond market dynamics continue to offer gold some support in the medium to long term. The yield on the 10-year U.S. Treasury fell to 4.55%, reflecting growing investor concerns over the U.S. fiscal outlook. Markets are closely watching former President Trump’s proposed new round of tax cuts. If implemented, they could widen the federal deficit and raise long-term inflation expectations—factors that historically favor gold as an inflation hedge.
Investor sentiment on gold’s next move remains split. Some institutions believe that if gold ETF inflows return to 2020 levels, prices could test $4,000 per ounce. Others argue that with geopolitical tensions easing, there’s potential for gold to correct by up to 10% before year-end.
From a technical standpoint, immediate support lies at $3,300 per ounce. A break below this level could see prices retesting the $3,250 range. On the upside, resistance is seen near the recent peak of $3,500.
Traders are now looking ahead to U.S. manufacturing PMI and jobs data due later this month. Signs of an economic slowdown could revive expectations for Fed rate cuts and lend further support to gold. Given the volatility, experts advise maintaining prudent position sizes and adjusting strategies as market conditions evolve.
