Federal Reserve Meeting: Gold prices opened the week on a strong note, rising sharply on Monday morning amid global market uncertainty. On Comex, gold climbed above $3,250 per troy ounce, while silver also remained firm, trading above $32. In the domestic market, MCX gold crossed ₹93,000 and silver surpassed the ₹94,000 mark.
The focus now shifts to the Federal Reserve’s monetary policy decision, scheduled for 7 May 2025, Wednesday at 11:30 PM IST. This decision is among the most awaited events of the week, especially in light of U.S. President Donald Trump’s return to office and his past criticism of the Fed’s rate hike policies.
Trump’s Criticism and Powell’s Tenure
Speculation is rife on whether the U.S. central bank will consider easing rates under renewed political pressure. However, current data suggests otherwise. Fed Watch tools indicate that 97 percent of traders expect no change in interest rates.
Amid the ongoing debate, President Donald Trump made it clear he does not intend to remove Federal Reserve Chair Jerome Powell.
“Why would I do that?” Trump said in an interview on NBC’s Meet the Press with Kristen Welker, aired Sunday. “I get to replace the person in another short period of time.”
This comment followed renewed criticism from Trump directed at Powell, as the President faces political heat over economic slowdowns triggered by sweeping tariff policies.
Powell’s current term as Fed Chair runs through May 2026.
Most analysts agree that the Fed is likely to hold rates steady during this week’s meeting. Although fears of a U.S. recession persist, Friday’s government data showed a robust increase of 177,000 jobs in April, slightly easing concerns.
Tariffs Back in Focus
Trade tensions remain elevated on multiple fronts. In a surprising move, President Trump announced a 100% tariff on all foreign-produced films, arguing that international incentives were causing the decline of America’s movie industry.
U.S. President Donald Trump on Sunday announced a 100% tariff on movies produced outside the country, saying the U.S. movie industry was dying a “very fast death” due to the incentives that other countries were offering to draw American filmmakers.
Trump also said he was open to revisiting tariffs on Chinese imports.
President Donald Trump said he is open to reducing tariffs on China in the future, acknowledging that the current high rates have effectively brought trade between the world’s two largest economies to a standstill.
The U.S. has imposed tariffs of up to 145% on Chinese imports, while China has responded with duties reaching 125% on American goods. The tit-for-tat measures have raised costs for manufacturers and consumers alike.
“At some point, I’m going to lower them, because otherwise, you could never do business with them, and they want to do business very much,” Trump said in an interview aired Sunday on NBC’s Meet the Press with Kristen Welker.
Geopolitical Tensions Keep Markets Cautious
Adding to the unease, President Vladimir Putin said in remarks published Sunday that Russia has the necessary resources to continue its war in Ukraine to its “logical conclusion.”
President Vladimir Putin, in remarks published Sunday, said Russia has the strength and resources needed to carry the war in Ukraine through to its “logical conclusion,” though he expressed hope that nuclear weapons would not be necessary.
Gold and Silver Outlook: Volatility Ahead
Last week, gold and silver prices experienced high volatility. A stronger dollar index and signs of progress in U.S.-Asia trade negotiations pushed both metals to a three-week low. The dollar index, recovering from multi-month lows, once again approached the 100 mark, applying pressure on precious metals.
Mixed U.S. economic indicators also contributed to market swings. A strong non-farm payroll number prompted profit booking in both gold and silver. However, other data such as Q1 GDP contraction and a rise in jobless claims helped cushion gold at lower levels.
This week, Manoj Kumar Jain, Director Prithvi Finmart expect continued volatility ahead of the Fed’s decision and further dollar index movement. Gold could test support at $3,180 per troy ounce, while silver may approach $31.40.
Key Technical Levels by Manoj Kumar Jain
- Gold (Comex): Support at $3,233–3,210, resistance at $3,280–3,300
- Silver (Comex): Support at $31.84–31.40, resistance at $32.50–32.88
- Gold (MCX): Support at ₹92,150–91,600, resistance at ₹93,040–93,550
- Silver (MCX): Support at ₹93,350–92,500, resistance at ₹94,800–95,500
Weekly Outlook by Brokerages
JM Financial
Gold is expected to trade sideways, with key support at ₹92,000. A breach below this level could lead to further declines toward ₹88,000 and ₹85,500. Immediate resistance is seen at ₹94,850 and ₹96,800. Silver is also showing a consolidative trend, supported at ₹91,600 and ₹91,300, with resistance at ₹96,300 and ₹98,100.
SMC Global
On Comex, gold finds support near $3,190 and resistance around $3,320, while silver may range between $31.60 and $34.00. On MCX, gold may trade between ₹89,900 and ₹94,000; silver between ₹90,600 and ₹97,800.
Kedia Commodities Update for Today
Gold has support at ₹92,185, with a break below potentially testing ₹91,740. Resistance is seen at ₹93,260, and a move above could take prices to ₹93,890.
Silver support is placed at ₹93,440, with a break below potentially testing ₹92,810. Resistance is seen at ₹95,065, and a breakout could see prices climb to ₹96,060.
IIDM Daily Gold outlook
Key Resistance is located at 3270 and consistent trading above this will open doors for 3300-3350. Strong support lies at 3210 below this will lead a further fall towards 3165-3130.
Big Events of the Week
Monday, May 5, 2025
07:15 PM (US) – S&P Global Services PMI Final (April)
07:30 PM (US) – ISM Services PMI (April)
Tuesday, May 6, 2025
06:00 PM (US) – Balance of Trade (March)
06:00 PM (US) – Exports & Imports Data
Wednesday, May 7, 2025
11:30 PM (US) – Federal Reserve Interest Rate Decision
12:00 AM – Fed Press Conference
Thursday, May 8, 2025
05:20 AM (Japan) – BoJ Monetary Policy Meeting Minutes
04:30 PM (UK) – Bank of England Interest Rate Decision
06:00 PM (US) – Initial Jobless Claims
06:00 PM (US) – Nonfarm Productivity QoQ Preliminary (Q1)
08:30 PM (US) – Consumer Inflation Expectations (April)
Friday, May 9, 2025
04:15 PM (US) – Speech: Fed Governor Barr
06:00 PM (US) – Speech: Fed Governor Kugler
07:30 PM (US) – Speech: Fed President Goolsbee
Saturday, May 10, 2025
07:00 AM (China) – Inflation Rate YoY (April)
Gold Price Today 5 May (India Local Sarafa Market)
99.50~96500
23 KT~94100
22 KT~90200
20 KT~82200
18 KT~74200
14 KT~59200
9999 SILVER:~96500
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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.
