Gold price forecast for May 8, 2025: Down due to pressure from USD's rise

World gold price today 5/8/2025

The world gold price today is 3,346.25 USD/Ounce (Last updated at 15:00). The world gold price (XAU/USD) increased by 0.64% equivalent to an increase of 21.81 USD/Ounce in the past 24 hours.

Gold prices (XAU/USD) continued to fall for the second consecutive day, currently trading around $3,320/ounce, the lowest level in many days.

Previously, the precious metal had increased slightly to the range of 3,414 - 3,415 USD/ounce, but quickly reversed when entering the European trading session today.

The main reason for the weakening of gold prices is the sudden increase of the USD after the meeting of the US Federal Reserve (Fed). Although the Fed kept interest rates unchanged at 4.25% - 4.5% as expected, the accompanying statement and the speech of Chairman Jerome Powell both expressed a cautious stance, showing that the possibility of cutting interest rates in the near future is not high.

This development helps the USD attract strong cash flows and reduces the attractiveness of gold, which does not yield interest.

Global stock markets are also in positive mood thanks to hopes of a new trade deal. US President Donald Trump said he would announce a major deal with a "great and respected" country today, although he previously insisted that he was not open to lowering tariffs on China.

This information contributed to boosting risk appetite and further weakening the demand for safe-haven gold.

On the other hand, geopolitical tensions in some regions remain a slight support for gold prices. Specifically, Ukraine carried out a drone attack that closed several airports in Moscow, while Russia continued to launch bombs hours after President Putin unilaterally declared a three-day ceasefire.

In the Middle East, Israel announced that it had disabled Yemen's main airport in the capital Sanaa, an area controlled by Houthi forces, and the Houthis vowed to respond.

However, these risk factors are not strong enough to offset pressure from a rising US dollar and optimism in the stock market.

In the coming time, investors will continue to closely monitor Mr. Trump's press conference at 2:00 p.m. US time and weekly unemployment claims data in the US to predict new directions for the greenback and gold prices.

Technical analysis of gold price on May 8, 2025

From a technical perspective, gold prices are hovering in a sensitive area as the $3,300/ounce level has become an important psychological support. If this level is broken convincingly, technical selling pressure could increase sharply, dragging prices down further in the short term.

Currently, the daily chart still shows that the oscillators are in the positive zone, meaning that the bullish outlook has not been completely ruled out.

As long as the price holds above the $3,260 support zone, an area that was once resistance and has now become support, the bulls still have a chance to turn things around.

To confirm a clear uptrend, gold would need to break above the $3,434-$3,435 zone, its recent weekly high. If that happens, the rally could extend to retest the all-time high and even challenge the iconic $3,500 mark in the gold market.

Conversely, if selling pressure continues and pushes the price below the $3,300 mark, the market could trigger technical sell orders, sending the price sliding towards the next support zones at $3,265 - $3,260.

In a worse scenario, the price could return to the $3,223 - $3,222 zone and even $3,200, the low last week.

The $3,300 mark now acts as a "life and death line" for gold's short-term trend. Developments in the coming sessions around this level will determine whether gold continues to correct deeply or recovers to return to record highs.

Source: https://baonghean.vn/du-bao-gia-vang-ngay-8-5-2025-giam-xuong-do-ap-luc-tu-da-tang-cua-usd-10296812.html