Gold prices are rising supported by the decline of the dollar and anticipation of the US Federal Reserve decision.

Gold prices witnessed a significant increase during Monday's trading on May 5th, supported by the decline in the US dollar index, amid global markets awaiting further clarity on trade policies between the United States and its partners, in addition to awaiting the Federal Reserve's decision on monetary policy to be announced later this week.

According to data, the price of gold in spot trading rose by 0.5% to reach $3258.16 per ounce, while US gold futures jumped by 0.6% to $3263.00 per ounce.

The 0.1% decline in the dollar index against a basket of major currencies contributed to enhancing the attractiveness of the yellow metal for investors outside the United States, as it became cheaper for holders of other currencies.

In a related context, recent statements by American and Chinese officials have revived hopes of a possible breakthrough in the trade crisis between the two countries, as the Chinese Ministry of Commerce confirmed that Washington has repeatedly expressed readiness to negotiate on tariffs, welcoming Beijing's willingness to engage in constructive talks.

On the other hand, US President Donald Trump reiterated that he will not dismiss Federal Reserve Chairman Jerome Powell before the end of his term in May 2026, but criticized him as "completely rigid," renewing the call for interest rate cuts.

Expectations of an interest rate cut in June have diminished after US Labor Department data showed more new jobs added in April than expected, with the unemployment rate remaining at 4.2%, reflecting the strength of the labor market.

Investors' attention this week is focused on the Federal Reserve's decision and statements from its officials, seeking to decipher the monetary policy outlook for the coming period.

In another context, Chinese markets are set to resume activity on Tuesday, May 6th, after the Labor Day holiday that lasted since May 1st.

As for other precious metals, silver recorded a slight increase of 0.1% to $32.02 per ounce, while platinum decreased by 0.5% to $954.88, and palladium fell by 0.2% to $951.36.