Gold prices fell nearly 2% on May 1, 2025, hitting their lowest point in two weeks. A stronger U.S. dollar and easing trade tensions pushed risk appetite up, reducing gold’s appeal as a safe-haven asset.

Spot gold dropped to $3,222.66 per ounce, marking a 2% decrease from the previous session. It hit its lowest level since April 15, 2025.U.S. gold futures dropped by 2.7%, reaching $3,230.

The dollar index rose by 0.3%, making gold more expensive for buyers using other currencies. This added to the pressure on gold prices.UBS analyst Giovanni Staunovo noted, “The hope that trade deals may soon happen, combined with a stronger dollar, is impacting gold prices.

“U.S. President Donald Trump indicated on Wednesday that the U.S. might soon strike trade deals with India, Japan, South Korea, and even China. He stated there was a “very good chance” of reaching an agreement with China.

The U.S. also reached out to China to discuss the 145% tariffs, according to reports from a social media account linked to Chinese state media.The U.S. economy contracted in the first quarter of 2025, marking the first decline in three years.

The drop was due to a surge in imports as businesses rushed to avoid higher tariffs.