The recent changes have diminished the desire for traditional safe-haven assets like gold, which had seen a rise amid global trade tensions earlier in 2025.
A product strategist at KCM Trade mentioned:
Fed rate outlook and dollar weakness provide support
Even with a general downward trend, gold prices have stabilized thanks to increasing expectations of interest rate cuts from the Federal Reserve. In April, the US Consumer Price Index (CPI) increased by 2.3% compared to the previous year—slightly below what analysts expected—while the Core CPI rose by 2.8%.
As inflation starts to ease, traders are now factoring in two potential interest rate cuts by the end of the year, possibly beginning in September.
Weaker US dollars, which usually bolster safe-haven assets, have contributed to gold’s loss of support. The Dollar Index (DXY) dipped below 101.60 on Tuesday, indicating a shift away from the Fed’s previously aggressive tightening stance.
Short-term forecast
The outlook for gold and silver depends largely on signals from the Fed and technical movements.
