{"id":114313,"date":"2025-05-07T01:39:00","date_gmt":"2025-05-06T21:39:00","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=114313"},"modified":"2025-05-07T02:13:45","modified_gmt":"2025-05-06T22:13:45","slug":"gold-hits-two-week-high-as-tariff-fears-and-fed-watch-grip-markets","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/gold-hits-two-week-high-as-tariff-fears-and-fed-watch-grip-markets\/05\/07\/market-updates\/","title":{"rendered":"Gold Hits Two-Week High as Tariff Fears and Fed Watch Grip Markets"},"content":{"rendered":"Gold is roaring back, climbing 2.9% to $3,431.14 per ounce on Tuesday, May 6, 2025, its highest since April 22. Fueled by China\u2019s post-holiday buying spree and jitters over looming US pharmaceutical tariffs, the yellow metal is defying a struggling US Dollar. With the Federal Reserve\u2019s policy decision looming, investors are on edge. Here\u2019s why gold is surging, what\u2019s driving the rally, and where it\u2019s headed next.<br \/><br \/>China\u2019s Return and Tariff Tensions Spark Demand<br \/><br \/>China\u2019s markets, reopening after the May 1-5 Labor Day holiday, unleashed a wave of gold buying, amplifying demand in the world\u2019s top consumer market. President Donald Trump\u2019s Monday announcement of planned tariffs on pharmaceutical imports within two weeks, following Sunday\u2019s 100% duties on foreign films, has heightened market unease. These trade moves, stoking fears of economic disruption, are driving investors to gold as a hedge against uncertainty, pushing US gold futures up 3% to $3,422.80.<br \/><br \/>Dollar\u2019s Woes Boost Gold\u2019s Appeal<br \/><br \/>The US Dollar is faltering as hopes for swift US trade deals fade, making gold cheaper for holders of other currencies. Central banks, eager to reduce exposure to Dollar-based assets, are adding fuel to the rally. Despite April\u2019s robust ISM Services PMI of 51.6 and Nonfarm Payrolls of 177,000, the Dollar\u2019s slide reflects market frustration with trade policy gridlock. This dynamic has propelled gold, a zero-yield asset, even as US 10-year Treasury yields tick up to 4.35%.<br \/><br \/>Fed\u2019s Rate Hold Looms Large<br \/><br \/>The Federal Reserve, led by Chair Jerome Powell, is expected to keep rates at 4.25%-4.50% at its May 6-7 meeting, with markets fully pricing in a hold. Powell\u2019s press conference will be scrutinized for hints on future rate cuts, as higher rates typically dim gold\u2019s allure. April\u2019s sticky Prices Paid Index at 65.1 suggests persistent inflation, reinforcing the Fed\u2019s cautious stance. Yet, gold\u2019s surge signals that tariff-driven uncertainty is outweighing interest rate pressures for now.<br \/><br \/>Precious Metals and Market Outlook<br \/><br \/>Gold\u2019s rally isn\u2019t alone\u2014silver climbed 1.9% to $33.10, platinum jumped 2.4% to $982.52, and palladium soared 3.1% to $971.27. Technicals point to further upside, with gold eyeing $3,500 and potentially $4,000 this year if trade fears escalate. Support holds at $3,300, with resistance at $3,450. Upcoming PMI and trade talk developments will shape the path. For now, gold\u2019s dazzling climb screams opportunity, but the Fed\u2019s signals and Trump\u2019s tariff plans could spark sharp swings.","protected":false},"excerpt":{"rendered":"<p>Gold is roaring back, climbing 2.9% to $3,431.14 per ounce on Tuesday, May 6, 2025, its highest since April 22. Fueled by China\u2019s post-holiday buying spree and jitters over looming US pharmaceutical tariffs, the yellow metal is defying a struggling US Dollar. With the Federal Reserve\u2019s policy decision looming, investors are on edge. Here\u2019s why &hellip;<\/p>\n","protected":false},"author":13,"featured_media":110167,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,37,36],"tags":[6885,6834,7164,11227],"class_list":["post-114313","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-forex-markets","category-market-updates","tag-fed","tag-pmi","tag-powell","tag-xau"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/114313","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=114313"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/114313\/revisions"}],"predecessor-version":[{"id":114315,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/114313\/revisions\/114315"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/110167"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=114313"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=114313"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=114313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}