World gold prices fall sharply.

World gold prices are on a sharp downward trend, having already lost more than $70 to around $3,215 per ounce. Photo: WSJ.

During the trading session on the night of May 1st and early morning of May 2nd (Vietnam time), the spot price of gold in the world market witnessed a sharp drop of more than $70, falling straight to around $3,215 per ounce, equivalent to a net decrease of more than 2% for the day.

According to Kitco News, this development is occurring against the backdrop of significantly improving risk appetite in global financial markets, weakening the demand for gold as a safe haven.

After reaching a historic peak of $3,500 per ounce in April, world gold prices have reversed sharply, falling by nearly $300 to date, equivalent to a net decrease of almost 9%. However, over the past year, the precious metal has still increased by 40%, reflecting its role as a safe haven amid global economic uncertainty.

The surge in gold prices mainly occurred in the first quarter of this year, supported by risks surrounding tough trade policies, particularly tariffs, imposed by US President Donald Trump.

However, as trade tensions between the US and its partners show signs of easing, and risk appetite recovers, the appeal of gold has temporarily weakened. Furthermore, the strengthening US dollar, with the USD Index – a measure of the greenback's strength against a basket of currencies – recently surpassing 100 points, has made gold even less attractive to international investors.

Another factor contributing to the cautious gold market is the mixed signals from the US economy. First-quarter GDP unexpectedly fell by 0.3%, a stark contrast to market expectations of a 0.4% increase.

In addition, the US ADP national employment report was also disappointing, recording only 62,000 new jobs in April, less than half of expectations. These data are reinforcing the possibility that the Federal Reserve (Fed) may soon begin a cycle of interest rate cuts.

The question is whether the Fed will act at the Federal Open Market Committee (FOMC) meeting on May 6-7 or wait until the mid-June meeting. This also depends on the April consumer price index (CPI), which is expected to be released on May 13. If inflation has not fallen sufficiently, the Fed may continue to keep interest rates unchanged.

Despite short-term volatility, experts maintain a positive outlook on gold in the medium and long term. Billionaire investor John Paulson recently predicted that gold prices could reach $5,000 per ounce by 2028, thanks to net buying by central banks and the risk of renewed geopolitical and global trade tensions.

For the remainder of 2025, the market is expected to maintain price levels around $3,200-$3,300 per ounce.

A recent Reuters survey also showed that investors forecast the average price of gold for the whole of 2025 to surpass $3,000 per ounce for the first time in history, reaching approximately $3,065 per ounce, significantly higher than the $2,700 per ounce estimated previously.

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Source: https://baotayninh.vn/gia-vang-the-gioi-rot-manh-a189588.html