{"id":21385,"date":"2025-05-06T03:40:22","date_gmt":"2025-05-06T03:40:22","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=21385"},"modified":"2025-05-06T03:40:22","modified_gmt":"2025-05-06T03:40:22","slug":"gold-climbs-to-two-week-high-ahead-of-fed-decision","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/gold-climbs-to-two-week-high-ahead-of-fed-decision\/","title":{"rendered":"Gold Climbs to Two-Week High Ahead of Fed Decision"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/gold10-1024x559.png\" alt=\"\" class=\"wp-image-16983\" \/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Gold touches $3,380.92 as Trump announces new tariffs on films and pharmaceuticals.<\/li>\n\n\n\n<li>Traders eye Wednesday\u2019s Fed decision with rate cuts expected by July.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>Gold prices surged to a two-week high on Tuesday, lifted by mounting concerns over fresh U.S. trade barriers and investor anticipation of the Federal Reserve\u2019s policy meeting. Spot gold rose 1.4% to $3,380.92 an ounce in early Asia trade, while U.S. gold futures climbed 2% to $3,389.90. The move comes after President Donald Trump unexpectedly announced a 100% tariff on foreign-produced movies, stoking volatility across asset classes.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Gold steadied \u2014 following a surge of almost 3% on Monday \u2014 as investors focused on a weaker dollar  <a href=\"https:\/\/t.co\/Z1bbSXwonG\">https:\/\/t.co\/Z1bbSXwonG<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1919553968734101751?ref_src=twsrc%5Etfw\">May 6, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Attention now turns to <a href=\"https:\/\/t.co\/sTGcnaur9o\">Wednesday\u2019s Fed decision<\/a>. The central bank is widely expected to hold rates steady within the 4.25%-4.50% range, but forward guidance will be key. Any dovish tilt from Chair Powell could accelerate bullish positioning in precious metals. Goldman Sachs forecasts <a href=\"https:\/\/www.reuters.com\/markets\/us\/goldman-sachs-raises-odds-us-recession-45-2025-04-07\/\">three 25 basis point cuts<\/a> this year, beginning in July.<\/p>\n\n\n\n<p>Gold tends to benefit from lower interest rates, as it reduces the opportunity cost of holding non-yielding assets. In an environment of geopolitical friction and uncertain monetary policy, bullion has regained its role as a financial anchor.<\/p>\n\n\n\n<p>Other precious metals also posted gains. Spot silver rose 1.5% to $32.99 an ounce, platinum climbed 1.3% to $971.24, and palladium advanced 0.5% to $945.75.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>Gold surged from a base of <strong>$3222.72<\/strong> to a high of <strong>$3386.99<\/strong>, gaining over 160 points in a strong bullish breakout. The rally gained steam after consolidating along the 30-period MA, with momentum sharply accelerating through <strong>$3310<\/strong>, then again past the <strong>$3350<\/strong> resistance level.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/1_image-2-1024x446.jpg\" alt=\"\" class=\"wp-image-21386\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: Gold breaks out past $3350, hits $3387 peak before stalling, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>All <strong>moving averages (5,10,30)<\/strong> are stacked bullishly, and the <strong>MACD (12,26,9)<\/strong> is showing strong upward momentum with widening histograms and a steep crossover, signalling strong buying pressure. That said, price action near the end of the chart suggests some <strong>profit-taking<\/strong> just below resistance at <strong>$3387<\/strong>, where a rejection candle has formed.<\/p>\n\n\n\n<p>Key support rests at <strong>$3310\u2013$3325<\/strong> on any pullback. If bulls hold above the 30-MA, the trend remains intact.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Cautious Forecast<\/h2>\n\n\n\n<p>If the Fed leans dovish and tariff rhetoric persists, gold may attempt a break above $3,400. Traders should monitor <a href=\"https:\/\/t.co\/hdomWmKmc8\">Powell\u2019s comments<\/a> and labour market data closely in the coming sessions. Risk remains skewed to the upside for bullion as uncertainty lingers.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*1azgbap*_gcl_au*NjE5NTE3MjY4LjE3NDQ2MDA3NDI.*_ga*MTY4OTgwNTU5Mi4xNzM2NzQ2MTgy*_ga_J26NL1ZVX7*czE3NDQ5NDQ0NTYkbzEyMCRnMCR0MTc0NDk0NDQ1NiRqNjAkbDAkaDA.\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Renewed political uncertainty and rate cut speculation fuel demand for safe-haven metals. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":16983,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[6],"class_list":["post-21385","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-gold"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/21385","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=21385"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/21385\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16983"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=21385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=21385"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=21385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}