Quote on Gold Commentary: 23rd May 2025 by Mr. Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial services Ltd
Below the Quote on Gold Commentary: 23rd May 2025 by Mr. Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial services Ltd
Gold prices slipped, posting their first daily loss in three sessions, as a stronger U.S. dollar, updates on President trump’s tax bill and investor profit-taking weighed on the metal. Earlier in the day, gold had touched a two-week high, but gains quickly faded as the dollar index rose 0.3%, against major crosses. Surge in dollar followed the narrow passage of President Donald Trump’s sweeping tax bill through the U.S. House of Representatives, a move that reignited concerns over the country’s ballooning fiscal deficit. The legislation, dubbed by Trump as a "big beautiful" tax cut, could add ~$3.8 billion to the already massive $36.2 trillion federal debt over the next decade. Bond vigilantes—investors wary of inflation and fiscal irresponsibility—have returned to focus, keeping pressure on sovereign debt. While investor demand for gold remains subdued for now, the mounting fiscal worries and potential bond market instability could renew interest in the safe-haven asset. On data front, US manufacturing PMI and Services was reported higher, settling slightly above the 50 mark, initial jobless claims also continued to show tightness in labor market. Markets will continue to watch both currency moves and macroeconomic signals closely for direction.
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