In a dynamic turn of events on May 5, 2025, gold prices surged over 2%, reaching $3,312.09 per ounce, buoyed by a weakening U.S. dollar and heightened safe-haven demand. U.S. gold futures mirrored this ascent, climbing to $3,321.30.

The dollar index experienced a 0.2% decline, rendering gold more affordable for investors holding other currencies. This currency shift coincided with investor caution following President Donald Trump's announcement of a 100% tariff on foreign-produced films, a move that rekindled fears of a global trade war.

Market participants are keenly awaiting the Federal Reserve's upcoming policy decision. The central bank has maintained interest rates between 4.25% and 4.50% since December. Analysts anticipate that rates will remain unchanged in the immediate term, but the economic implications of recent tariff announcements could influence future monetary policy directions.

Gold's appeal as a safe-haven asset is further amplified by its performance this year, with prices ascending 26.3% and achieving multiple record highs. Goldman Sachs projects that gold will continue to outperform silver, attributing this trend to sustained central bank demand and geopolitical uncertainties.

As the financial landscape evolves, investors are closely monitoring Federal Reserve Chair Jerome Powell's forthcoming statements for insights into the central bank's stance on interest rates and economic outlook.