Gold prices have been on a strong upward trend in 2025, driven by geopolitical tensions, economic uncertainty, and central bank demand. Here’s what analysts expect for the **next month (May 2025)
1. Short-Term Bullish Outlook** – **Current Gold Price (April 2025):** ~$3,200–$3,300/oz . – **Expected Range for May 2025:** **$3,250–$3,500/oz** . – **UBS** forecasts gold could reach **$3,200+** in the near term . – **Goldman Sachs** revised its outlook to **$3,300–$3,520** due to strong ETF inflows and central bank demand
2. Key Factors Influencing Gold in May 2025** #### **A. Geopolitical & Economic Risks** – **Trade tensions (U.S. tariffs, China relations)** could push gold higher if conflicts escalate . – **U.S. recession fears** (60% chance, per Jeffrey Gundlach) may increase safe-haven demand . #### **B. Central Bank Buying** – **China, Russia, and other central banks** continue accumulating gold (~70 tonnes/month expected) . #### **C. U.S. Dollar & Inflation** – A weaker **USD** (due to Fed rate cut expectations) could support gold prices . – Persistent **inflation concerns** may drive investors toward gold as a hedge
3. Potential Downside Risks** – **Profit-taking pullbacks** if gold nears **$3,500** resistance . – **Unexpected U.S.-China trade deal** could temporarily lower gold prices
4. Analyst Consensus for May 2025** | **Institution** | **1-Month Forecast** | **Key Driver** | |—————-|——————-|—————-| | **Goldman Sachs** | $3,300–$3,520 | ETF inflows, central bank demand | | **UBS** | $3,200+ | Safe-haven demand | | **CPM Group** | $2,730–$3,000 | Supply-demand balance | | **BofA** | $3,500 (if bullish) | Investor inflows
5. Trading Recommendation** – **Buy on dips** (if gold drops below **$3,200**) . – **Watch for Fed policy signals** (rate cuts could boost gold)
Final Verdict:** Gold is likely to **rise further in May 2025**, possibly testing **$3,500**, but volatility remains high due to geopolitical risks.