Global gold price drops sharply on May 31 2025
According to webangah News Agency, citing Reuters, the strengthening U.S. dollar and changes in U.S.tariff policies pushed gold prices lower in Friday’s trading session. However, reports of cooling U.S. inflation have renewed hopes for potential interest rate cuts.
Spot gold fell 0.86% to $3,289.25 per ounce, while gold futures on New York’s COMEX declined 0.85% to $3,315.40.
The dollar index rose 0.1%, making gold more expensive for buyers using other currencies.
A U.S federal appeals court suspended a previous ruling by the Court of international Trade that had blocked Trump-era tariffs, allowing these duties to remain in effect until June 9.
Analysts note that reduced demand for gold as a safe-haven asset has partially driven prices down, though market instability from Trump-era trade policies continues to support the precious metal’s value.
The U.S core PCE price index rose 2.% year-over-year in april – slightly below the projected 2.% increase – leading traders to anticipate potential Federal Reserve rate cuts as early as September.
Low-interest environments typically benefit gold, which remains a preferred hedge against inflation and geopolitical uncertainty The metal hit an all-time high of $3,.05 per ounce in April
Among other precious metals silver fell.18% to $.03 while platinum dropped .60% to $,.84
