On May 22, 2025, gold prices rose to a two-week peak, with spot gold reaching $3,340.53 an ounce and US gold futures climbing to $3,341.90. This rally is driven by investors seeking safe-haven assets amid mounting worries over the US government’s growing debt and weak demand for 20-year Treasury bonds. The US dollar’s recent decline also made gold cheaper for holders of foreign currencies, supporting its price gains.
Kelvin Wong, senior market analyst at OANDA, noted that gold’s bullish trend is supported by a weaker dollar and ongoing stagflation risks in the US economy. The US Treasury’s soft demand for a $16 billion sale of 20-year bonds, combined with Moody’s recent downgrade of the US credit rating, has further unsettled markets, benefiting gold’s appeal.
Additionally, geopolitical tensions remain on the radar as Iran and the US prepare for a fifth round of nuclear talks in Rome on May 23.
Gold continues to thrive as a safe investment during times of economic uncertainty, geopolitical tensions, and low interest rates.
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