At the end of the session on May 17, the price of SJC 9999 gold decreased by 200,000 VND/tael in both directions compared to the previous trading session, to 115.5-118.5 million VND/tael (buy - sell).

SJC Company listed the price of 1-5 chi gold rings and Doji listed the price of 9999 gold rings at 111-114 million VND/tael (buy - sell), down 700,000 VND/tael in both directions compared to the previous day.

Gold prices on the Kitco floor closed the trading week at $3,200.1/ounce. Gold futures for June 2025 delivery on the Comex New York floor traded at $3,205/ounce.

Moody's Ratings has downgraded the US credit rating from AAA to AA1 due to concerns about the growing public debt of the world's largest economy . At the same time, the agency has adjusted its outlook for the US from "negative" to "stable".

Moody's said the US administration and Congress are unlikely to agree on measures to reverse the trend of large annual fiscal deficits and rising interest costs. The rating agency predicts the federal debt burden will continue to rise, reaching about 134% of GDP by 2035 - a significant increase from the 98% estimate for 2024.

The downgrade comes as the US government has implemented strict austerity measures through the Department of Government Efficiency, overseen by Tesla CEO Elon Musk.

While Musk initially promised $2 trillion in cuts, the actual savings were significantly lower, with verified savings reportedly coming in at less than $100 billion.

Gold, often seen as a safe-haven asset during times of economic uncertainty, has seen increased demand as investors worry about the implications of the US credit downgrade.

Gold - Chi Hieu (12).jpg
Gold price ends the week down. Photo: Chi Hieu

Market sentiment improved after US-China trade tensions showed signs of easing. The US and China agreed to a 90-day pause, sharply reducing tariffs on each other's goods, easing concerns about a slowdown in global economic growth.

On May 15, US Federal Reserve Chairman Jerome Powell said the US economy may be entering a period of more supply shocks and volatile inflation, requiring more transparent communications from the central bank.

According to data from the CME's FedWatch Tool, the probability of the Fed cutting interest rates by 0.25 percentage points in June is currently only 8%, in July it is nearly 36%, and in September it is more than 51%.

Gold Price Forecast

Thorsten Polleit, founder of the Boom & Bust Report, said the current sell-off is not surprising. He said positive trade talks between the US and China, along with agreements reached by President Donald Trump during his trip to the Middle East, are helping to ease fears of a US recession.

“The improved US economic outlook will continue to put pressure on gold prices,” he said. “Gold may fall further in the short term, but this is a natural correction. Investors should not be too worried.”

Polleit predicts that gold prices may test support below $3,000 an ounce before the correction ends. However, low prices will attract new buying interest.

He also noted that global debt levels are unsustainable, which will continue to fuel inflation and create economic uncertainty - long-term factors that support gold. Demand for gold as a safe-haven asset is waning, but not completely gone.

Source: https://vietnamnet.vn/gia-vang-hom-nay-18-5-2025-ket-thuc-tuan-chao-dao-vang-sjc-giam-lien-tiep-2402204.html