Safe-haven demand keeps gold on the rise

Spot gold prices edged up on Friday, boosted by safe-haven demand amid Iran-Israel tensions, although gains were capped by a stronger dollar. Meanwhile, silver prices surged to a 13-year high.

Gold jewelry is displayed for sale at a jewelry store in Istanbul, Türkiye. Photo: THX/TTXVN

At around 0:51 a.m. on June 18, Vietnam time, spot gold prices increased by 0.2% to $3,390.59/ounce. US gold futures prices closed down slightly by 0.3% to $3,406.9/ounce.

The dollar index, which measures the greenback's strength against a basket of major currencies, rose 0.8%, making gold, which is traded in dollars, more expensive for investors holding other currencies.

Geopolitical instability, especially the Israel-Iran tensions that are likely to escalate further before showing signs of cooling down, will continue to be a supportive factor as investors seek safe havens, said Jim Wycoff, senior analyst at Kitco Metals.

In a related development, US President Donald Trump said he wanted a "real end" to the nuclear dispute with Iran, while hinting at the possibility of sending senior US officials to meet representatives of the Islamic Republic, as the air war between Israel and Iran entered its fifth day.

On monetary policy, the US Federal Reserve (Fed) is expected to announce its interest rate decision on June 18 (local time), followed by a press conference by Chairman Jerome Powell. The market largely expects the US central bank to keep its benchmark interest rate unchanged in the range of 4.25%-4.50%, which has been maintained since December 2025. Low interest rates and geopolitical uncertainty tend to increase the appeal of gold.

A survey by the World Gold Council (WGC) shows that central banks around the world are expected to increase the proportion of gold holdings in their total reserves over the next five years.

Economic data released today showed that US retail sales fell more than expected in May 2025. However, consumer spending was still generally supported by solid wage growth.

Meanwhile, spot silver prices rose sharply by nearly 2% to $37.05 an ounce, hitting their highest level since February 2012.

Citi Bank in a recent report predicted that silver prices could continue to climb to the $40/ounce mark within the next 6 to 12 months.

Among other precious metals, platinum rose 1.5% to $1,264.61 an ounce, and palladium also rose 1.7% to $1,047.54 an ounce.

In Vietnam, on the afternoon of June 17, Saigon Jewelry Company listed the price of SJC gold bars at 117.60 - 119.60 million VND/tael (buy - sell).

According to VNA

Source: https://doanhnghiepvn.vn/kinh-te/nhu-cau-tru-an-an-toan-giu-nhip-tang-cho-vang/20250618074817348