Thu May 08 03:40:00 UTC 2025: **Gold Price Fluctuates Amidst Uncertain Trade Talks and Hawkish Fed Pause**

NEW YORK, NY – Gold prices experienced a volatile day, initially rising to $3,414-$3,415 in Asian trading before retreating to lower levels. The Federal Reserve’s decision to hold interest rates steady, while perceived as hawkish, supported the US dollar and dampened gold’s appeal as a non-yielding asset. However, several factors are preventing a significant price drop.

President Trump’s downplaying of a swift US-China trade deal, coupled with ongoing geopolitical tensions (Russia-Ukraine war, Middle East conflicts, India-Pakistan border standoff), continue to bolster gold’s safe-haven status. Uncertainty surrounding an upcoming Trump press conference further contributed to market hesitancy.

Technically, gold prices found support around $3,260, suggesting bullish momentum. Daily chart oscillators remain positive, indicating a potential upside towards the $3,434-$3,435 range, possibly even retesting all-time highs and challenging the $3,500 mark. Conversely, support levels lie around $3,465-$3,460, $3,328-$3,327, and $3,300. A decisive break below $3,300 could trigger further selling.

The Federal Reserve’s monetary policy, which aims for price stability and full employment, significantly influences the US dollar and, consequently, gold prices. The Fed’s current stance, while pausing rate hikes, remains vigilant about inflation, a factor potentially supporting the dollar and putting downward pressure on gold.

**Disclaimer:** This news article summarizes information from FXStreet and does not constitute investment advice. Investing in gold involves significant risk, including potential loss of capital. Consult with a financial advisor before making any investment decisions.

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