U.S. May PMI data came in unexpectedly strong, pushing the dollar and Treasury yields higher while sending gold prices tumbling below the $3,300 mark. Despite short-term pressure from technical factors and tighter liquidity, continued central bank buying and persistent geopolitical tensions continue to support the medium- to long-term outlook for gold. Investors should closely monitor key technical support levels and upcoming Federal Reserve policy decisions.

On May 22, 2025, gold prices pulled back to close at $3,297.33 per ounce, after briefly reaching a two-week high. The retreat came as the U.S. dollar strengthened, stock markets advanced, and investors shifted capital toward riskier assets, prompting profit-taking in gold. However, falling U.S. Treasury yields and concerns surrounding a proposed tax cut plan offered some support for bullion. Investors are now closely watching upcoming U.S. economic data for further direction. Experts recommend a cautious approach, highlighting the importance of monitoring key technical support and resistance levels to navigate ongoing volatility in the gold market effectively.

Recent comments by former U.S. President Donald Trump suggest that the Russia-Ukraine war could drag on, reigniting global concerns over geopolitical risk. This has triggered volatility in international oil and gold prices, while defense stocks have defied the broader market trend and moved higher. As energy security and military spending come back into focus, investors may want to reassess their portfolios with caution. Keeping a close eye on the upcoming NATO summit and shifts in global policy will be key to navigating the evolving financial landscape.

The British pound has climbed for four straight sessions against the US dollar, bolstered by stronger-than-expected UK inflation data and a shift in market expectations around monetary policy. Sterling briefly touched 1.3430, nearing the key psychological resistance level at 1.3450. As attention turns to upcoming PMI and retail sales figures, traders are closely watching the pound’s next move.

Gold prices surged this week, hitting a high of $3,350 per ounce, driven by both strong technical momentum and supportive fundamentals. With the U.S. dollar weakening, key PMI data on the horizon, and rising geopolitical tensions, the outlook for gold remains bullish. Investors should monitor critical support and breakout levels closely and stay agile in adjusting their strategies.

The U.S. dollar has fallen for three straight days, as growing concerns over America’s fiscal discipline and the Federal Reserve’s policy direction have pushed investors toward safe-haven assets like gold and the Japanese yen. Rising geopolitical tensions and the upcoming G7 summit have added to the cautious mood in currency markets, making it unlikely that short-term pressure on the dollar will ease anytime soon.

Rising geopolitical tensions in the Middle East have driven West Texas Intermediate (WTI) crude oil prices up by more than 2.5%, pushing past $63 per barrel. Growing concerns over a possible Israeli military strike on Iran’s nuclear facilities have unsettled global energy markets. Analysts warn that any disruption or blockade of the Strait of Hormuz—a critical chokepoint for global oil shipments—could severely impact global oil supply. For a detailed breakdown of the latest crude oil price movements and geopolitical developments, read our full in-depth analysis.

The Australian dollar has recently staged a strong rebound, climbing to 0.6455 against the US dollar. This uptick is driven by a combination of dovish signals from Federal Reserve officials, a weaker greenback, and a recovery in commodity prices. Investors are now turning their focus to upcoming Australian PMI figures and U.S. inflation data, which could play a key role in shaping short-term market trends.

After the latest G7 finance ministers meeting, the U.S. dollar may starts to lose ground, catching the market’s attention. Citigroup highlights that the easing of U.S. trade tariffs, combined with shifts in currency policies among major economies, is diminishing the dollar’s traditional role as a safe haven asset. Investors should stay alert to potential volatility in the foreign exchange market and consider reassessing their currency allocation strategies.

The UK’s inflation rate has continued to decline, with the Consumer Price Index (CPI) rising 2.6% year-over-year in March—coming in below market expectations. In response, the Bank of England made a modest rate cut, lowering the base interest rate to 4.25%. As inflation and wage pressures ease, markets are anticipating a shift toward more accommodative monetary policy, with two additional rate cuts likely by the end of the year.

This policy pivot opens up fresh opportunities for investors across multiple asset classes. Crypto markets, Hong Kong equities, and forex traders should keep a close watch, as changes in UK interest rates often influence capital flows, currency valuations, and risk sentiment across global markets.