Gold rates jumped in early Friday trade as the dollar weakens and US macroeconomic indicators point to an economic slowdown; experts weigh in on whether it’s time to buy.
May 2, 2025,
Gold prices surged in domestic futures trading on Friday morning as a weakening US dollar and worrying economic signals from the United States pushed up demand for the safe-haven asset. On the Multi Commodity Exchange (MCX), June 5 gold contracts rose 0.46% to ₹92,768 per 10 grams at 9:20 AM.
The uptick comes on the heels of a sharp decline in the dollar index, which dipped by 0.30%, making gold more affordable in foreign currencies and thus increasing its global appeal.
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📉 US Economic Concerns Fuel Gold Demand
Investor sentiment is also being shaped by the latest US GDP data, which revealed the economy contracted by 0.3% in the first quarter of 2025—the first contraction in three years. The slowdown comes amid supply chain challenges and cost escalations resulting from President Donald Trump’s intensified trade war policies.
Adding to the economic gloom, the ISM manufacturing PMI fell to 48.7 in April, down from 49.0 in March, marking the second consecutive month of contraction and signaling subdued industrial activity.
📊 Recent Profit Booking, Now Rebound?
Gold had recently undergone significant profit booking, and experts suggest that the dip allowed for new entry points. The current rebound is seen as a reaction to both global macroeconomic uncertainty and traders recalibrating their expectations.
🛍️ Should You Buy Now?
Analysts recommend cautious optimism. While the macroeconomic indicators support gold’s upward momentum in the short term, prospective investors should watch for any reversal in US inflation trends, Federal Reserve policy signals, and further dollar movements.
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Gold Price Today, MCX Gold, US Dollar, Economic Slowdown, Gold Investment, US GDP, Manufacturing PMI, Safe Haven Asset, Gold vs Dollar, Gold Rates India