International gold price drops nearly 1% due to pressure from strong USD

DNVN - The trading session on June 3 recorded a significant decrease in gold prices as investors were cautious ahead of the phone call between US and Chinese leaders.

Illustration photo. Photo: Internet

Gold prices fell nearly 1% on June 3 after hitting a four-week high. The rising US dollar weighed on the precious metal as investors remained cautious ahead of a planned call between US President Donald Trump and Chinese President Xi Jinping this week.

Earlier, gold prices jumped more than 2% due to concerns over escalating geopolitical tensions and uncertain economic factors.

Gold's rise was also fueled by worries surrounding the risk of new US tariffs, putting pressure on global trade.

On the afternoon of June 2, gold bar prices continued to decrease in domestic trading sessions.

The rise of world gold is supported by safe-haven demand amid volatile markets.

At 1:26 a.m. on June 4 (Vietnam time), the spot gold price recorded a decrease of 0.9%, down to 3,352.30 USD/ounce, after reaching its highest level since May 8 during the session. Meanwhile, the US gold futures contract closed the session down 0.6%, down to 3,377.10 USD/ounce.

The dollar index rose 0.5% from a more than one-month low, making gold less attractive to investors using other currencies.

According to expert David Meger of High Ridge Futures, the gold market is entering a period of quiet trading often seen in the summer, causing the price trend to move sideways or decrease slightly.

Concerns continue to grip investors ahead of a possible phone call this week between US President Donald Trump and Chinese President Xi Jinping, amid trade tensions between the two major economies that show no signs of easing.

The European Commission recently announced that it is promoting negotiations with the US on lowering tariffs, especially when Mr. Trump proposed doubling tariffs on imported steel and aluminum.

In addition, investors are also paying attention to the US non-farm payrolls report, scheduled to be released on June 6, along with statements from US Federal Reserve (Fed) officials to look for signals on the path of interest rate adjustment.

A recently released report shows that the number of unfilled jobs in the US increased in April 2025, but the number of people laid off also increased, indicating that the labor market is showing signs of slowing down.

According to Meger, although the Fed has prepared to lower interest rates, the agency is unlikely to make a decision until September 2025. That would put more pressure on the USD and at the same time positively support gold. As a safe haven in times of uncertainty, gold often benefits from a low-interest-rate environment. The price of this precious metal has increased by about 28% since the beginning of the year.

In the Vietnamese market, at 6:37 a.m., Saigon Jewelry Company announced that the price of SJC gold in Hanoi fluctuated at 114.90 - 117.20 million VND/tael for buying and selling.

Cao Thong

Source: https://doanhnghiepvn.vn/kinh-te/gia-vang-quoc-te-giam-gan-1-vi-ap-luc-tu-dong-usd-tang-manh/20250604090824927