Gold prices fall as market sentiment on global trade turns more positive

DNVN - The precious metal fell for a second consecutive session on July 24, as signs that global trade tensions were easing undermined gold's safe-haven status.

Illustrative image. Photo: Internet

At 0:45 AM on July 25th, Vietnam time, the spot gold price fell 0.5% to $3,370.69 per ounce; meanwhile, US gold futures contracts ended the session down 0.7% to $3,373.5 per ounce.

According to Aakash Doshi, an expert at State Street Investment Management brokerage firm, market sentiment is positive amid the possibility of reaching trade agreements between the US and its partners, first Japan and now possibly the European Union (EU). He added that the upward momentum of gold is being hampered by a strong and less volatile stock market.

Progress is being noted in trade negotiations between the US and the EU, potentially including the 15% basic tariff that the US imposes on goods from the EU. This follows the announcement of a separate agreement between Washington and Japan earlier this week.

President Donald Trump made a surprise visit to the Federal Reserve later in the day, an action that further increased uncertainty regarding the direction of monetary policy.

Trump's actions come amid his repeated complaints to Fed Chairman Jerome Powell for not lowering interest rates more aggressively. Doshi believes that any signs of interference with the Fed's independence could support gold prices in the medium and long term.

The Fed is expected to keep interest rates unchanged at its meeting on July 29-30, but investors are still hoping for a possible cut in September. Gold is sensitive to US interest rate policy, as lower rates weaken the dollar but simultaneously increase the attractiveness of non-yielding assets like gold.

In terms of economic data, the number of unemployment benefit claims in the US unexpectedly fell last week, reflecting a stable labor market, although hiring activity showed signs of slowing down and workers faced more difficulties in finding jobs.

In other precious metals markets, spot silver prices fell 0.7% to $39.02 per ounce, while platinum prices also declined 0.5% to $1,405.15 per ounce.

In the domestic market, at the beginning of the morning of July 25th, Saigon Jewelry Company listed the buying and selling prices of SJC gold at 119.70 - 121.70 million VND/ounce.

Cao Thong

Source: https://doanhnghiepvn.vn/kinh-te/gia-vang-sut-giam-khi-tam-ly-thi-truong-ve-thuong-mai-toan-cau-tich-cuc-hon/20250725094913159