Gold Price Drops to $2,335.53 on May 13, 2025 Amid Inflation Worries
On May 13, 2025, gold prices fell by 1.1%, breaking a recent two-day rally as rising inflation concerns prompt uncertainties about the Federal Reserve's future interest rate policies. Discover why investors still consider gold the top hedge against inflation.
Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital platforms, leading teams to cover major news events with precision and insight.
Highlights to Know
- Gold prices declined by approximately 1.1% to $2,335.53 per ounce on May 13, 2024, reversing gains from the previous two days amid inflation-related concerns.
- The Federal Reserve Bank of New York's recent survey indicates consumers expect higher inflation over the next year compared to previous months.
- A Bloomberg survey identifies gold as the most favored inflation hedge, followed closely by leading U.S. technology stocks.
Gold’s spot price retraced earlier gains, reflecting investor anxiety regarding inflation’s impact on the Federal Reserve’s approach to interest rates. The Federal Reserve Bank of New York reported an uptick in consumer expectations for inflation in April compared to March, adding pressure on markets.
Consumers Anticipate Rising Inflation
April's findings from the New York Fed’s Survey of Consumer Expectations reveal increased projections for inflation both in the short term and over the next five years. This comes ahead of key producer and consumer price reports scheduled for release this week, which are expected to influence policymakers' decisions on borrowing costs.
Survey respondents now forecast inflation at 3.3% for the coming year, up from 3.0% in March, and expect a 2.8% rate over five years, compared to 2.6% previously.
The U.S. Labor Department plans to publish the April Producer Price Index report on Tuesday, followed by the Consumer Price Index for April on Wednesday.
Gold Maintains Position as Leading Inflation Hedge
Despite fluctuations, gold remains the preferred asset for protecting wealth against inflation risks, according to a recent Bloomberg Markets Live Pulse survey. U.S. tech stocks also enjoy a strong reputation among investors.
In the survey, 46% of participants chose gold as the best inflation hedge, while 30.4% favored major U.S. technology companies like Nvidia. Bitcoin accounted for 5.1%, with other assets making up 18.1%.
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