Gold prices continued to rise on May 8th. The FOMC held rates steady, but uncertainty increased due to inflation and tariff policies. Trade talks limited the surge.
Gold Price: Gold prices have been steadily rising, and this trend continued on May 8th, 2025. A slight increase in gold prices was recorded in the domestic futures market on Thursday morning. The primary reason is concern over economic uncertainty and rising inflation in the United States, anxieties exacerbated by recent warnings from Federal Reserve Chairman Jerome Powell.
Impact of Economic Uncertainty in the United States
Following its policy meeting on May 7th, the Federal Reserve left interest rates unchanged but indicated that economic risks remain. Powell clearly stated that while the US economy appears b, instability persists regarding inflation and trade policies.
According to Powell, current tariff policies are having a greater impact than previously anticipated, and their future remains unclear. This is why investors are turning to safe haven assets like gold, driving up prices.
Global Trade Talks and the Impact of the Dollar
Another significant factor is the increased possibility of improved trade relations between the US and China. Officials from both countries are scheduled to meet in Switzerland this week. This has led to market expectations of a positive resolution. However, until the results are known, gold will remain a safe haven for investors.
Meanwhile, fluctuations in the dollar index and a decline in the US stock market have further enhanced gold's appeal.
Slight Increase in Gold Prices in India
In India, the gold June contract on MCX traded at ₹97,200 per 10 grams, up 0.11%. This signals to investors and buyers that if global uncertainty persists, gold prices could rise further.
