On May 1, 2025, gold prices dropped nearly 2% to $3,222.66 per ounce, marking a two-week low as easing global trade tensions and a stronger U.S. dollar reduced the metal’s safe-haven appeal.
U.S. gold futures also slipped 2.7% to $3,230, while the dollar index rose 0.3%, making gold more costly for foreign buyers.
Investor confidence grew after President Trump signaled possible trade deals with India, Japan, South Korea, and China, boosting risk appetite and weakening demand for gold.
Despite a U.S. economic contraction in Q1—the first in three years—markets focused on improving trade prospects, leading investors to shift toward riskier assets.