Gold price on the morning of May 12 decreased after positive signals from US-China trade negotiations

At 9:00 a.m. on May 12, the world gold price recorded a sharp drop, down to 3,278 USD/ounce. In just a short time at the beginning of the week, the gold price lost nearly 50 USD/ounce and fell below the important threshold of 3,300 USD. This is one of the most notable sharp drops after many weeks of gold prices fluctuating around high levels.

The impact of the decline in world gold prices has quickly spread to the domestic market. Large gold trading enterprises such as SJC, PNJ and DOJI have adjusted the price of gold bars down to about VND119 million/tael for buying and VND121 million/tael for selling, a decrease of about VND1 million/tael compared to yesterday.

Not only gold bars, but also plain gold rings and 99.99 gold jewelry also witnessed a similar decrease. Currently, the buying price fluctuates around 113.5 million VND/tael and the selling price is at 116 million VND/tael.

Gold prices fell as positive signs of trade talks between the US and China eased market concerns, prompting many investors to shift from safe-haven assets like gold to riskier investments.

The dollar index rose sharply after the Trump administration announced progress in trade talks with China. The weekend talks in Switzerland put downward pressure on gold prices, said Jigar Trivedi, senior commodities analyst at Reliance Securities.

The world's two largest economies ended talks on a positive note on Sunday, with the US claiming a "deal" to reduce the trade deficit, while China said the two sides had reached "important consensus".

Chinese Vice Premier He Lifeng said a joint statement would be issued on Monday in Geneva.

Gold is often seen as a hedge against economic or political uncertainty and has an advantage in a low-interest-rate environment. However, Cleveland Federal Reserve President Beth Hammack said the Fed needs more time to assess the impact of tariffs and other policies from the Trump administration before deciding on an appropriate response.

Investors are also awaiting US Consumer Price Index (CPI) data on Tuesday for further clues on the Fed's monetary policy.

According to Mr. Trivedi, gold prices may continue to fall in the short term due to the strengthening of the USD and the reduction of geopolitical risks, which will weaken the demand for safe havens. He predicted that gold prices may fall to $3,200/ounce in the near future.

Meanwhile, spot silver was steady at $32.7 an ounce, while platinum edged up 0.3 percent to $998.04 and palladium edged up 0.4 percent to $979.73.

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Source: https://baonghean.vn/gia-vang-sang-12-5-giam-sau-tin-hieu-tich-cuc-tu-dam-phan-thuong-mai-my-trung-10297080.html