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Gold prices jump on geopolitical tensions and US tariff concerns

Asian gold prices rose sharply in the afternoon trading session on June 2, as investors sought safe assets amid escalating geopolitical tensions and the US's plan to increase import tariffs.

Tạp chí Doanh NghiệpTạp chí Doanh Nghiệp02/06/2025

Photo caption
Gold bars in Aichi, Japan. Photo: Kyodo/VNA

Specifically, the spot gold price increased by 1.2% to 3,326.45 USD/ounce. The US gold futures price also recorded an increase of 1.1% to 3,351 USD/ounce.

The development came after US President Donald Trump announced on May 30 that he would double tariffs on steel and aluminum imports from 25% to 50%. This move immediately drew a reaction from the European Commission (EC), which warned that it would take appropriate countermeasures.

In addition, the Russia-Ukraine conflict continues to escalate, increasing pressure on risky assets and supporting gold prices. Mr. Tim Waterer, Chief Market Analyst at KCM Trade Company, commented: "With trade and geopolitical concerns on the rise, it is not surprising that gold started the new week with an upward trend." According to Mr. Waterer, the weakening USD is also a factor supporting gold prices, especially for international investors.

Investors are closely watching speeches from US Federal Reserve officials this week, especially Chairman Jerome Powell's speech scheduled to take place later on June 2, to seek further signals on the direction of monetary policy.

Previously, Governor Christopher Waller said interest rates could start falling by the end of 2025, although the Trump administration's tax hike plan could cause inflation to rise in the short term.

Meanwhile, US Treasury Secretary Scott Bessent said President Trump and Chinese President Xi Jinping will soon hold talks to resolve trade disputes, including issues related to strategic minerals. These talks could affect the sentiment of the gold market, which is very sensitive to fluctuations in global trade.

In other precious metals, spot silver rose 0.6% to $33.16 an ounce. Platinum fell 0.5% to $1,050.83 an ounce, while palladium was flat at $970.31 an ounce.

In Vietnam, at 3:05 p.m. on June 2, Saigon Jewelry Company listed the price of SJC gold bars at 115.80 - 117.80 million VND/tael (buy/sell).

Source: https://doanhnghiepvn.vn/kinh-te/gia-vang-bat-tang-do-cang-thang-dia-chinh-tri-va-lo-ngai-thue-quan-tu-my/20250602045333370


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