Gold advanced ahead of Fed decision

5 May 2025

Gold advanced on trade stalemate and geopolitical tensions ahead of Fed decision

Today’s markets analysis on behalf of Erkin Kamran – Traze CEO

Gold prices rose on Monday, as lingering uncertainty over US-China trade negotiations and renewed geopolitical risks boosted demand for safe-haven assets. Tensions in Eastern Europe remain a source of concern, while new developments in the Middle East could keep investors cautious.

Trade negotiations between the US and China are a key factor in the precious metal’s value. While President Donald Trump stated over the weekend that China was eager to reach a deal, Beijing reiterated its conditions for resuming talks, highlighting the absence of any imminent progress. The stalemate, combined with a weaker US dollar, helped support the metal.

On the monetary front, investor focus is turning toward this week’s Federal Reserve policy meeting. Any dovish signals or signs of a slowing economy may support the metal further, while a firmer Fed stance could limit short-term upside. At the same time, economic uncertainty driven by Trump’s unpredictable tariff policy could continue to drive demand for gold.