Gold price sharply up on safe-haven demand as FOMC meeting begins

(Kitco News, Tuesday. May 6th, 2025 ) – Gold futures prices are again strongly higher in early U.S. trading Tuesday, on continued solid safe-haven demand, especially from China. Silver prices are also sharply up. A weaker U.S. dollar index early this week is also bullish for the gold and silver markets. June gold was last up $59.10 at $3,381.40. May silver prices were last up $0.855 at $33.06.

A Dow Jones Newswires headline today reads: “Gold futures rally as market hopes fade for swift trade war resolution.”

Broker SP Angel today reports that according to Bloomberg the Shanghai Gold Exchange is planning to boost its warehouse network to Hong Kong, operated by the Bank of China. “The move is intended to promote yuan-denominated gold benchmarking as Beijing looks to exert more control over commodity pricing. The Shanghai gold exchange has seen record volumes in recent quarters as Chinese retail saw heavy buying.”

This week comes the Federal Reserve’s interest rate decision on Wednesday afternoon. No change in U.S. monetary policy is expected at this week’s FOMC meeting that begins Tuesday morning.

Asian and European stock markets were mixed in overnight trading. U.S. stock indexes are pointed to lower openings today in New York. Risk aversion is creeping back into the general marketplace amid no major breakthroughs announced on the global trade war front.

In other overnight news, Trade Nation’s David Morrison writes in a morning email dispatch: “The Japanese yen was stronger across the board, getting a modest safe-haven lift. There was more volatility during the overnight session after the Hong Kong Monetary Authority (the region’s de-facto central bank) intervened to weaken the Hong Kong dollar. It continues to butt up against the top of its trading band, thanks to the continued weakness in the U.S. dollar.”

The key outside markets today and see the U.S. dollar index weaker. Nymex crude oil futures prices are higher and trading around $58.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.343%.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the U.S. international trade report, the RCM/TIPP economic optimism index, and the global services PMI.

Technically, June gold futures bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract/record high of $3,509.90. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $3,209.40. First resistance is seen at the overnight high of $3,395.00 and then at $3,400.00. First support is seen at $3,350.00 and then at the overnight low of $3,332.10.

May silver futures bulls have the overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $33.69. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at $33.50 and then at $33.69. Next support is seen at $32.48 and then at $32.00

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com