FOMO psychology pushes gold prices to skyrocket, investors continue to listen to US policies

Soaring

During the trading week from April 14 to April 20, gold prices continued to rise and set new records.

In the international market, despite a short trading week due to the holiday closure on Friday, spot gold prices increased by 4.3%, closing last week at $3,326/ounce. Gold prices retreated slightly after surpassing the record $3,350/ounce mark on April 17.

In general, the price of gold futures for June 2025 delivery closed at $3,343/ounce. Meanwhile, at the Shanghai Gold Exchange - the largest physical gold trading center in Asia, the price of gold has not turned around, closing the week at 790 yuan/gram, up nearly 4.43% in just one week. This is also the highest level in the history of trading on this exchange.

World gold price developments in the past 6 months.

The heat of gold also quickly spread to the domestic market, even somewhat excessively, causing the gap between world and domestic gold prices to widen. By the end of Friday (April 18), the price of SJC gold bars was still at 117 million VND/tael for buying and 120 million VND/tael for selling, equivalent to an increase of more than 12% compared to the end of last week. However, on the morning of the weekend, the price of gold quickly evaporated 6 million VND/tael for selling.

At the end of last week, SJC gold bars at most stores were listed at VND114 million for sale, an increase of VND7.5 million/tael compared to the end of last week. For purchase, the price of gold bars increased by VND9.5 million/tael, to VND112 million/tael. Investors who bought gold last weekend could have made a profit of VND5.5 million/tael if they sold it to take profit. However, if they decided to buy on April 18, investors could have temporarily recorded a loss of VND8 million/tael. There has been a phenomenon of people lining up to buy gold on some streets specializing in gold trading in the past few days. However, the amount sold to each individual is very limited despite having to spend a long time waiting.

In the document conveying Deputy Prime Minister Ho Duc Phoc's direction on the domestic gold price movement issued on April 18, the State Bank was assigned to have solutions to stabilize and prevent profiteering, price manipulation, and speculation in the gold market. Deputy Prime Minister Ho Duc Phoc requested the State Bank and relevant agencies to closely monitor the situation and developments in the domestic and international financial, gold, and foreign exchange markets, and at the same time, immediately implement solutions to stabilize the gold market, increase transparency, inspect, and strictly handle violations according to regulations.

Overbought zone?

Not only gold, precious metals also had a strong week of growth such as Platinum price increased by 5.08%, silver increased by 4.24%. The upward momentum of gold price and other precious metals continued due to increased demand for shelter amid unstable US trade policy. However, cooling signals from some negotiation moves between the US and China and profit-taking pressure pulled world gold down slightly.

Last week, Federal Reserve Chairman Jerome Powell warned that tariffs could increase inflation and stifle growth. The Fed will wait for more clarity before taking action. President Trump later criticized Chairman Powell for "acting too slowly" and hinted at the possibility of replacing him. The USD held steady at a three-year low and currently closed at 99.2 points. This is also a factor supporting high gold prices.

With the heat of gold prices last week, responding to a survey by Kitco News, Mr. Lukman Otunuga, market analyst at FXTM, said that gold has increased by 28% since the beginning of the year, surpassing the 24% increase of last year. If there is a technical correction, this expert noted that gold could retreat to $3,250/ounce, $3,140/ounce or $3,000/ounce. These are important psychological support levels. Meanwhile, if the $3,300 mark holds, the next target is $3,400/ounce.

According to Ole Hansen, an expert from Saxo Bank, a strong correction of 200-300 USD/ounce is possible, but not next week. Uncertainty from Mr. Trump's statement about the Fed Chairman will continue to push up bond risks and support gold prices. David Morrison, an analyst from Trade Nati, also assessed that last week's increase was a typical breakout. Although the uptrend is still strong, investors should be cautious because the market is in an overbought zone similar to the peak in 2011.

Meanwhile, some experts believe that the weakness of the DXY index reflects the decline in confidence in US policymakers, making any recovery of the greenback very fragile. Mr. Christopher Vecchio, Head of Futures & Forex at Tastylive, commented that the USD is still the reserve currency, but the world needs an alternative asset like gold.

Entering the new trading week, the global market is expected to continue to fluctuate, as investors continue to closely monitor uncertain signals from the US government regarding tariff policy. On the one hand, the US has threatened to expand tariffs on semiconductors and pharmaceuticals, while on the other hand, it has also suggested the possibility of reducing tariffs to "cool down" tensions.

Investors will be paying close attention next week to PMI data and earnings reports from tech giants. In addition to the preliminary April PMI reports from the US, Eurozone and Japan, durable goods orders and existing home sales data from the US will also reflect consumer spending and investment in the world’s No. 1 economy . Investors will be closely watching first-quarter earnings from a host of major companies including Alphabet, Tesla, Boeing, IBM, Intel, Merck and P&G to gauge the real impact of trade policy uncertainty.

Source: https://baodautu.vn/tam-ly-fomo-day-gia-vang-tang-phi-ma-nha-dau-tu-tiep-tuc-nghe-ngong-chinh-sach-tu-my-d270053.html