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Weakening demand for shelter drags down world gold prices

DNVN - In the trading session on July 23, the world gold price continued to decline after news that the US and the European Union (EU) are approaching an agreement to impose a 15% tax, a factor that is reducing the attractiveness of safe-haven assets.

Tạp chí Doanh NghiệpTạp chí Doanh Nghiệp24/07/2025

Illustration photo. Photo: Internet

As of 1:33 a.m. on July 24, Vietnam time, spot gold prices fell 1.1% to $3,394.64 an ounce, after reaching their highest level since June 16 earlier in the session.

The fact that the US has signed a trade deal with Japan and is moving towards a deal with the EU suggests that the EU will not impose large retaliatory tariffs, making risk assets more attractive, according to Bart Melek, head of commodity strategy at TD Securities.

Information from two diplomats on July 23 revealed that the US and EU are in the final stages of agreeing on a trade deal with a 15% tariff on goods from the EU exported to the US.

The development came at the same time that US President Donald Trump announced that he had signed a trade agreement with Japan on July 23, including reducing import tariffs on cars - a positive signal for the US tariff negotiation process.

During periods of uncertainty or when interest rates are low, gold often appreciates because the opportunity cost of holding a non-yielding asset like gold becomes lower.

A Reuters survey found that most economists do not expect the US Federal Reserve (Fed) to cut interest rates in July 2025.

In the domestic market, on the morning of July 24, Saigon Jewelry Company listed the price of SJC gold in Hanoi at between 120.7 and 122.7 million VND/tael (buy - sell).


Cao Thong

Source: https://doanhnghiepvn.vn/kinh-te/nhu-cau-tru-an-suy-yeu-keo-gia-vang-the-gioi-di-xuong/20250724084424010


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