Market Analysis by Quasar Elizundia, Expert Research Strategist at Pepperstone
– May 27, 2025 –
“Gold prices extended losses on Tuesday, as optimism over US-EU trade talks reduced immediate safe-haven demand. The easing of tensions followed President Trump’s decision to delay the imposition of 50% tariffs on European goods, and news that Brussels had agreed to accelerate negotiations.
On the monetary front, comments from Minneapolis Fed President Neel Kashkari added further pressure. Kashkari warned that interest rates may need to remain steady due to uncertainty over the inflationary impact of recent tariffs, advocating for a cautious approach before any policy shift.
Despite short-term weakness, the structural outlook remains ive. After a 30-tonne outflow the week prior, gold-backed ETFs recorded a 3.2-tonne inflow in the week ending May 23. Persistent central bank buying and strong Chinese imports could reinforce gold’s long-term appeal.
Meanwhile, geopolitical tensions in Eastern Europe and the Middle East remain unresolved and could limit downside pressure.
Looking ahead, attention turns to the FOMC minutes and PCE inflation data for further insight into the Fed’s policy path.”
