Gold Price Predictions for 26th to 30th May ‘25

US Dollar vs Gold

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Gold was sharply higher this week, rising almost 4% as the dollar plunged after U.S. President Donald Trump threatened to impose 50% tariffs on imports from the European Union on June 1, adding yet more turmoil for the global economy and raising safe-haven demand. Trump threatens 25% tariffs on Apple and Samsung phones. 

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The recently passed US tax bill in the House, now moving to the Senate, is estimated by the Congressional Budget Office to cost nearly $4 trillion, heightening fears of long-term fiscal instability.

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Moody’s recent downgrade of the US credit rating underscores these concerns over rising deficits and increasing debt servicing costs.

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Investor sentiment has been fragile since Moody's downgraded the United States' credit rating late last Friday. This downgrade has raised concerns about the country's $36 trillion debt. 

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Additionally, Trump is advocating for tax cuts that could worsen the debt burden by an estimated $4 trillion.

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Gold Rate Forecast

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Earlier this week, gold also gained support from renewed geopolitical tensions after reports emerged that Israel may strike Iranian nuclear sites, raising fears of broader escalation in the Middle East.

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For the week, the greenback was down 2%, back to 99 levels—on track for its biggest weekly percentage decline since early April. The key theme weighing on the dollar right now is the loss of confidence in U.S. policy.

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Super-long Japanese government bonds have also scaled record highs this week, although yields dipped on Friday. 

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Data showed that Japan's core inflation accelerated at its fastest annual pace in more than two years in April, boosting the Japanese currency and increasing the likelihood of another interest rate hike by the Bank of Japan by year-end.

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The data underscores the dilemma facing the Bank of Japan, which must grapple with price pressures from persistent food inflation as well as economic headwinds from Trump's tariffs.

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The PBoC cut key lending and liquidity rates shortly after credit data indicated that the issuance of government bonds increased in April, extending signals that Beijing would continue to support factory activity.

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Gold prices are expected to trade in the range of $3275 (~₹95000) and $3375 (~₹96400) in the near term. 

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Either a side breakout or breakdown will give 2-3% movement. While silver is expected to continue its range-bound momentum from $32 (~₹94000) to $34 (~₹98000) going forward.

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Disclaimer: The recommendations and opinions shared by experts regarding the stock market and other asset classes are their own. These views do not reflect the official stance or position of Jar.