Spot gold rises 2% to $3,359.05/oz

Spot gold rises 2% to $3,359.05/oz

Spot gold prices rose by 2% to $3,359.05 per ounce on May 23, 2025, following a period of volatility in global bond markets and a strengthening U.S. dollar. The precious metal, often seen as a safe-haven asset, benefited from the uncertainty in the global financial markets.

Gold's recent price movements have been influenced by several factors. On May 22, 2025, gold experienced a significant decline of over 1% primarily due to a strengthening U.S. dollar and profit-taking by investors [2]. However, the metal rebounded on May 23, driven by a combination of factors including a weaker dollar and increased demand for safe-haven assets.

The U.S. 20-year bond auction on Wednesday received a lackluster response from investors, and the U.S. 30-year bond yields surpassed 5.0% levels for the first time since October 2023. Additionally, the Japanese 30-year bond yields surged to record 3.18% levels on Thursday, adding to the uncertainty in the global financial markets [1]. These developments have supported safe-haven buying for precious metals, including gold.

Manoj Kumar Jain of Prithvifinmart Commodity Research suggested that gold and silver prices would remain volatile in today's session due to volatility in the dollar index, global bond markets, and geopolitical tensions. He expects gold prices to hold their support level of $3,240 per troy ounce [1].

The U.S. Dollar Index (DXY) was hovering near the 99.65 mark, falling 0.32 or 0.32% on May 23, 2025, which made gold more affordable for international investors. The weakening dollar index helped gold prices to rise, despite profit-taking pressure from recent gains [2].

Gold's trading range for today is Rs 94,600-96,650, and for silver, it is Rs 96,300-99,300. The current price action indicates that gold is finding support around the $3,300 level, which has become a psychological threshold for traders. Previous resistance levels that may now act as support include the mid-May trading range. The 50-day moving average currently aligns with the $3,300 support level, providing additional technical reinforcement [1].

The Relative Strength Index (RSI) currently reads 58, suggesting room for further upside before gold enters overbought territory (typically at readings above 70). This indicates that despite recent weakness, the technical structure remains supportive of gold's upward momentum.

In conclusion, spot gold prices rose by 2% to $3,359.05 per ounce on May 23, 2025, driven by a combination of factors including global bond market volatility, a weakening U.S. dollar, and increased demand for safe-haven assets. The metal's price action demonstrates classic consolidation behavior, with narrowing trading ranges following significant moves.

References:
[1] https://economictimes.indiatimes.com/markets/commodities/news/gold-price-prediction-yellow-metal-at-2-week-high-amid-bond-trouble-breakout-coming/articleshow/121354258.cms
[2] https://discoveryalert.com.au/news/gold-recent-price-drop-dollar-strength-profit-taking-2025/