As of Thursday, May 1, 2025, gold prices have declined to a two-week low

with spot gold dropping 1.6% to $3,235.55 per ounce and U.S. gold futures falling 2.3% to $3,243.30. This downturn is attributed to a stronger U.S. dollar and easing global trade tensions, which have reduced gold's appeal as a safe-haven asset.
 

Investor sentiment has shifted due to optimistic signals from the U.S. administration regarding potential trade agreements with countries like India, South Korea, and Japan. Additionally, the U.S. economy contracted by 0.3% in the first quarter of 2025, marking its first decline since early 2022, further influencing market dynamics. ​

In India, gold prices have also seen a decline, with MCX gold settling at ₹95,353 per 10 grams on May 1. This drop is in line with global trends, reflecting the broader market's response to shifting economic indicators and geopolitical developments.​

Looking ahead, investors are closely monitoring upcoming U.S. economic data, including the non-farm payrolls report, for further insights into the Federal Reserve's potential interest rate policy. Analysts suggest that clearer signs of economic weakness could lead the Fed to consider interest rate cuts by the end of the year.