Gold prices rebounded sharply today, recovering from yesterday’s steep fall as investors reassessed the implications of the U.S.-China trade truce. In the international market, COMEX gold rose over 1%, trading above $3,250 per ounce, while silver surged more than 2%, crossing the $33 mark. In the spot market as well, gold remained firm above $3,250. All eyes are now on the upcoming U.S. inflation data due this evening, with markets anticipating a rise. A higher inflation print could flip gold prices later in the day.
The bounce comes even as the dollar index retreated slightly on Tuesday, though it held most of its recent gains on continued optimism over a tariff ceasefire between the world’s two largest economies.
Washington and Beijing on Monday announced a 90-day suspension of the heavy tariffs imposed on each other’s goods — a move that sparked a relief rally in global equities and sent the dollar surging. But questions linger.
“China agreed to open,” U.S. President Donald Trump said, calling it “maybe the most important thing” to emerge from the high-level negotiations involving Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, and their Chinese counterparts.
Trump also confirmed that the U.S. would not reinstate the 145% tariff rate on Chinese imports even if a long-term deal isn’t reached in the 90-day window. “But they would go up substantially,” he warned, keeping pressure on future talks.
In a related development, China lifted a month-long ban on deliveries of Boeing aircraft, a move seen as a goodwill gesture following progress in trade talks.
Meanwhile, Japanese Finance Minister Katsunobu Kato stated that he plans to meet with U.S. Treasury Secretary Bessent at the upcoming G7 meetings in Canada from May 20–22 to discuss foreign exchange concerns.
“I’m making preparations to attend the meetings of G7 finance leaders in Canada next week,” Kato said at a press briefing.
Why Gold Is Still Above $3,250 Despite the Trade Deal
- The tariff pause is only for 90 days — uncertainty remains about what follows.
- Concerns about both the global and U.S. economy persist.
- Markets remain jittery, with buying support emerging at lower levels.
- Investor sentiment is still clouded by geopolitical uncertainty and economic anxiety.
Some Key Questions Remain:
- Has the U.S. suffered more than it gained from the trade war?
- If tariffs are being scaled back, what did Washington actually achieve?
- How long will it take for the U.S. economy to recover fully?
- Has China’s firm stance hurt the U.S.’s global image?
Earlier this week, gold and silver faced heavy selling pressure following the announcement of the U.S.-China deal in Switzerland. The truce temporarily boosted confidence across global markets, lifting equities and reducing safe-haven buying in precious metals. Adding to the softer tone was the Indo-Pak ceasefire, which further reduced geopolitical risk premiums.
According to Manoj Kumar Jain, Director at Prithvi Finmart:
“Global equity markets showed solid strength and also pushed gold and silver prices lower. We expect gold and silver prices to remain volatile this week amid fluctuations in the dollar index and geopolitical tensions. Gold could hold its key support at $3,140 per ounce, while silver may stay supported at $31.40 per ounce.”
Technical levels for COMEX (as per Jain):
- Gold support at $3,200–3,180; resistance at $3,250–3,274
- Silver support at $32.30–32.00; resistance at $32.94–33.30
At MCX:
- Gold support at ₹92,400–₹91,770; resistance at ₹93,360–₹94,000
- Silver support at ₹94,400–₹93,650; resistance at ₹96,000–₹96,650
Kedia Commodity Outlook:
- Gold: Immediate support at ₹91,690; break below could drag prices to ₹90,485. Resistance at ₹94,800, with potential to rise to ₹96,705.
- Silver: Support at ₹93,920, downside to ₹92,500 possible. Resistance at ₹96,705; break above could take prices to ₹98,070.
Despite the relief over trade talks, uncertainty over long-term outcomes and broader economic trends continue to lend support to gold — keeping it anchored above the $3,250 mark.
Big Events of The Week
Monday, May 12, 2025
07:55 PM – US – Fed Kugler Speech
11:30 PM – US – Monthly Budget Statement (April)
Tuesday, May 13, 2025
06:00 PM – US – Core Inflation Rate MoM (April)
06:00 PM – US – Inflation Rate MoM (April)
Wednesday, May 14, 2025
02:45 PM – US – Fed Waller Speech
06:40 PM – US – Fed Jefferson Speech
Thursday, May 15, 2025
02:30 PM – Eurozone – GDP Growth Rate QoQ 2nd Estimate (Q1)
06:00 PM – US – Retail Sales MoM (April)
06:00 PM – US – Core PPI MoM (April)
06:00 PM – US – Initial Jobless Claims (Weekly)
06:10 PM – US – Fed Chair Powell Speech
06:45 PM – US – Industrial Production MoM (April)
Friday, May 16, 2025
05:20 AM – Japan – GDP Growth Rate QoQ Preliminary (Q1)
07:30 PM – US – Michigan Consumer Sentiment Preliminary (May)
Other Major Events This Week
China–US Trade Talks
President Trump’s Visit to the Middle East
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Disclaimer:
The information provided in this article is for informational purposes only and reflects the views of industry experts. Before making any investment decisions, it is recommended that you consult a financial advisor. The team at Gold Price Today does not engage in personal buying, selling, or trading of gold or silver on exchanges. We are not responsible for any gains or losses incurred based on the information presented here.
