As the week of May 5, 2025, unfolds, gold prices are showing signs of stabilization after experiencing a significant downturn. The global gold price settled at 3,239 USD per ounce on May 4, 2025, marking a notable decrease over the previous week.
On May 4, gold prices were relatively steady, with the international gold price listed at 3,239 USD per ounce, unchanged from the previous day. This stability comes after a tumultuous week where gold prices dropped a total of 82.80 USD, attributed largely to profit-taking and liquidation activities by short-term futures traders. The market was also influenced by the International Labor Day holiday, which caused many markets to close.
At 7:00 AM on May 4, domestic gold prices remained stable as well. The price for gold bars at Doji and SJC was reported at 119.3 to 121.3 million VND per tael for buying and selling, respectively. Meanwhile, the price for gold rings at Doji was quoted at 114 to 116.5 million VND per tael, showing no change compared to the previous day.
The previous week began with global gold prices starting at 3,326 USD per ounce but quickly fell to 3,271 USD per ounce. The North American market opened on Monday within the 3,300 USD per ounce range and saw prices rise to 3,352 USD by the end of trading. However, European traders managed to pull prices back down to 3,307 USD per ounce during the week.
Spot gold experienced fluctuations throughout the week, with a significant drop on Wednesday where prices fell from 3,314 USD per ounce to a support level of 3,270 USD per ounce. By Thursday, spot gold tested the 3,200 USD per ounce level, and after retesting 3,207 USD in the US market, it reached 3,265 USD on Friday. The week concluded with a strong sell-off, pushing prices down to a daily low of 3,222 USD per ounce.
As the trading week closed, gold on Kitco settled at 3,239 USD per ounce, while June 2025 gold futures on the Comex New York traded at 3,247 USD per ounce. Analysts are keeping a close eye on the market, with many expressing cautious optimism about future price movements.
According to a recent weekly gold survey by Kitco News, only a small number of industry experts expect gold prices to rise in the coming week. However, around half of retail traders maintain a positive outlook despite the recent declines. The average forecast for gold prices this year has been adjusted upwards, now predicting an average of 3,065 USD per ounce, an increase from the previous forecast of 2,756 USD. Additionally, the forecast for 2026 has also been raised from 2,700 USD to 3,000 USD per ounce.
Several factors are driving this optimism, including ongoing global trade tensions and a growing trend away from reliance on the US dollar. Since the beginning of the year, spot gold has increased by more than 25%, closely mirroring last year's impressive 27% increase.
However, analysts are also warning of potential risks that could impact gold prices. Suki Cooper, an analyst at Standard Chartered, pointed out that market fluctuations and a slowdown in central bank cash flows could diminish gold's appeal as a safe haven. John Weyer, director of trade hedging at Walsh Trading, emphasized that the gold market will continue to be influenced by news regarding tariffs, whether they are rumors or confirmed facts.
In the short term, Weyer predicts that gold prices may hover around current levels but could experience significant volatility. While gold is often viewed as a safe haven, there remains considerable uncertainty in the market. Darin Newsom, a senior market analyst at Barchart, noted that the short-term trend for June gold is declining based on daily charts.
Market pressures are expected to intensify as the week progresses. Alex Kuptsikevich, a senior market analyst at FxPro, suggested that bearish sentiment is likely to increase as the week draws to a close, with buyers dominating the market early in April but sellers taking control in the latter weeks.
"If the market continues to decline, the next stop for gold prices could be around 2,900 USD per ounce," Kuptsikevich warned, indicating that prices could trade below the 50-day moving average if selling accelerates. This could quickly push prices down to the 2,600 to 2,700 USD per ounce range.
Fawad Razaqzada, a market analyst at City Index, also predicted that gold prices could drop further, potentially falling below 3,200 USD per ounce as demand for safe-haven assets diminishes.
As the gold market navigates these complex dynamics, investors are urged to stay informed and prepared for further fluctuations in the weeks ahead. The interplay of global economic conditions, trade policies, and market sentiment will undoubtedly shape the future trajectory of gold prices.
