---
title: "Gold gains on weaker dollar; traders brace for Fed rate decision"
description: "Gold prices rise as the US dollar weakens ahead of the Fed's interest rate decision this week. Analysts are predicting a $3200-$3350 gold price range."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "MARKETS WRAP"
author: "Reuters"
author_url: "https://www.dailymaverick.co.za/author/reuters/"
canonical_url: "https://www.dailymaverick.co.za/article/2025-05-05-gold-gains-on-weaker-dollar-traders-brace-for-fed-rate-decision/"
published: "2025-05-05T05:35:30"
updated: "2025-05-05T05:35:34"
lang: "en-ZA"
word_count: 357
---

# Gold gains on weaker dollar; traders brace for Fed rate decision

> Gold prices rise as the US dollar weakens ahead of the Fed's interest rate decision this week. Analysts  are predicting a $3200-$3350 gold price range.

By Reuters · Published 5 May 2025, 07:35 SAST · Updated 5 May 2025, 07:35 SAST

## Key points
- As gold glimmers in a $3200-$3350 spotlight, the dollar stumbles ahead of the Fed's interest rate decision, leaving traders to ponder whether the central bank will be a friend or foe to their precious metal investments.
- Fed's interest rate decision looms, with traders eyeing potential cuts amid strong job growth.
- Gold prices rise to $3,261.59 an ounce, buoyed by a weaker dollar ahead of the Fed meeting.
- Analysts predict gold will trade between $3,200-$3,350, with volatility expected from trade deal developments.
- U.S. President Trump confirms Jerome Powell's position as Fed Chair, emphasizes the need for rate cuts and fair trade with China.

## Content

- Fed's interest rate decision due this week
- Gold may trade in the $3200-$3350 range ahead of the Fed meeting, analyst says
- Dollar down 0.3% against its rivals

May 5(Reuters) - Gold prices firmed on Monday, helped by a weaker dollar, while investors awaited more clarity on trade policy between the US and its trading partners, and looked forward to the Federal Reserve's policy decision due later this week.

Spot gold gained 0.7% to $3,261.59 an ounce, as of 0217 GMT. US gold futures rose 0.8% to $3,269.60.

The dollar was down 0.3% against its rivals, making gold more attractive for other currency holders.

"The US dollar is looking subdued ahead of the Fed meeting this week which is enabling gold to take a mild run higher," KCM Trade's Chief Market Analyst Tim Waterer said.

"We may see gold continue to operate in the $3200-$3350 range ahead of the Fed meeting. However, any new headlines on the trade deal could cause volatility to tick up once again."

The market's focus will be on the US central bank policy decision and speeches by several Fed officials due this week, for insights into future monetary policy trajectory.

Traders are now expecting 80 basis points of rate cuts this year starting in July, following the U.S. Labor Department's report on Friday [showing](https://www.reuters.com/sustainability/sustainable-finance-reporting/us-job-growth-slows-marginally-april-unemployment-rate-steady-42-2025-05-02/) larger-than-expected job additions in April.

Non-yielding gold acts as a hedge against global uncertainty and inflation and tends to thrive in a low-interest-rate environment.

US President Donald Trump said he will not remove Jerome Powell as Fed Board Chairman before his term ends in May 2026, while reiterating his call for the Fed to cut interest rates.

Trump on Sunday said the U.S. was meeting with many countries, [including China](https://www.reuters.com/business/trump-says-he-wants-fair-trade-deal-with-china-2025-05-05/), on trade deals, and his main priority with China was to secure a fair trade deal.

Chinese markets are closed for the Labour Day holiday from May 1-5 and will resume trade on Tuesday, May 6.

Spot silver rose 0.1% to $31.99 an ounce, platinum fell 0.4% to $956.09 and palladium eased 0.1% to $952.63.

Reporting by Anushree Mukherjee in Bengaluru; Editing by Rashmi Aich and Janane Venkatraman