Gold price volatility due to "excessive" trade tensions
Speaking to Dan Tri newspaper reporters, Mr. Shaokai Fan, Director of Asia- Pacific region (excluding China) and Director of Global Central Banks at the World Gold Council (WGC), commented that the US and China, the two largest economies in the world, have made significant progress in the 2-day negotiation round in Geneva (Switzerland) to cool down trade tensions.
According to Mr. Shaokai, this is a positive step, although the agreements do not completely eliminate the trade barriers that have been erected since President Donald Trump took office. He noted that the agreements are only temporary, and investors must observe more after 90 days - when the agreement period ends - to know what decisions will be made next.
"In any case, the US is moving away from extreme measures and becoming more moderate," he assessed.
According to the WGC representative, the recent fluctuations in gold prices are due to "excessive" trade tensions. The impact of the agreement on gold prices also depends on the US's long-term stance on tariff policies towards other countries (besides China).
According to him, no country is not affected by external policies. Gold prices will fluctuate accordingly.
According to WGC representative, gold price fluctuations recently are due to "excessive" trade tensions (Photo: Hai Long).
Gold outlook 'uncertain' in long term
The recent fluctuations in world gold prices have increased the gap between domestic prices. According to Mr. Shaokai, when the domestic currency tends to weaken, investors often look for assets such as gold to anchor to preserve value.
In addition, the real estate and stock markets have not really broken through, which is also the reason why investors are looking for alternative markets, pushing gold prices up as demand increases.
"The strict gold management policy also increases the gap between gold prices in Vietnam and the world. The adjustment and expansion of the gold market in the coming time can help improve supply and reduce the gap," he said.
"Over the past three months, we have seen gold prices rise as investors seek more stability and resilience in their portfolios," he said. He noted that gold is an asset to diversify portfolios and increase resilience in the current political turmoil, but individual investors need to consider the role of gold more carefully.
"We live in a world of less stability, more volatility. Investors have to be ready for the unexpected," he told reporters, stressing that gold's outlook is "uncertain" in the long term.
Source: https://dantri.com.vn/kinh-doanh/my-trung-quoc-hoan-ap-thue-90-ngay-gia-vang-sap-toi-ra-sao-20250513110626019.htm
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