Financial analysts say the reason gold prices are fluctuating so strongly is due to changes related to tariffs.
US President Donald Trump and European Commission President Ursula von der Leyen have spoken, giving new impetus to trade talks, after Trump dropped his threat to impose 50% tariffs on EU imports next month.
In addition, a stronger US dollar and increased risk appetite weighed on gold, which is priced in US dollars and is often favored during times of economic and geopolitical uncertainty. While the US dollar rebounded slightly after the US consumer confidence data, it remained near its previous lows and the US dollar index is still below 100 points.
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| The gap between domestic and international gold prices is gradually narrowing. |
Meanwhile, Minneapolis Federal Reserve President Neel Kashkari called for keeping interest rates on hold until there is more clarity on how higher tariffs will affect inflation. Minutes from the Fed's latest policy meeting are due out today (May 28). Key U.S. economic data due this week include first-quarter GDP estimates, weekly jobless claims and the core PCE price index.
Analysts still highly appreciate the prospects of gold, especially when the US tariff policies are still ahead, geopolitical instability, and the health of the US dollar is weakening. At the same time, the demand for gold from central banks around the world is still increasing, in which the Hong Kong Census and Statistics Department has just announced that the amount of gold imported by China through Hong Kong in April 2025 has tripled compared to the previous month. Net imports reached 43,462 tons in April, the highest level since March 2024.
China’s total gold imports via Hong Kong reached 58.61 tonnes in April, up from 21.07 tonnes in March, which was also the highest in more than a year. The surge in gold imports was partly due to the People’s Bank of China (PBoC) granting additional import quotas to some commercial banks in April.
In response to the current market volatility, CitiGroup has raised its short-term gold price forecast, expecting prices to fluctuate between $3,100 and $3,500 per ounce over the next three months, up from its previous forecast of $3,000 to $3,300 per ounce on May 12. However, CitiGroup's latest forecast for gold prices is still considered quite conservative compared to other major financial institutions. Bank of America, Goldman Sachs, Natixis and VanEck all predict that gold prices will reach $4,000 per ounce this year or early 2026.
The international gold price moved sideways, pulling down the domestic SJC gold bar price when SJC listed the price of SJC gold bars this morning at 115.8-118.3 million VND/tael (buy-sell), down about 300,000 VND/tael compared to yesterday. The price of gold rings was stable at 111-114 million VND/tael (buy-sell). Although the gap between international and world gold has narrowed, with the listed price this morning, SJC gold bars are still about 14 million VND/tael higher than the international price. The price of SJC gold rings is 10 million VND/tael higher than the international gold price.
In his recent directive, Prime Minister Pham Minh Chinh clearly stated the need to research and establish a gold trading floor in the direction that people are free to trade and buy and sell; separating state management from gold production and trading activities. This means that when the national gold trading floor is established, all people can register to trade.
Prime Minister Pham Minh Chinh once again requested the State Bank to strengthen management and quickly reduce the gap between domestic and international gold prices to only about 1-2%, not over 10% as recently. If the gap between domestic and international gold prices decreases to only 1-2%, equivalent to about 2-3 million VND/tael, it means that domestic gold prices will fall below 110 million VND/tael.
This morning (May 28), the central exchange rate between VND and USD announced by the State Bank was 24,947 VND/USD, up 12 VND compared to yesterday. The USD price at Vietcombank for transfer is 25,740 VND/USD, selling is 26,100 VND/USD, unchanged compared to yesterday.
Source: https://baodautu.vn/vang-quoc-te-tang-nhe-gia-sjc-van-cao-hon-14-trieu-dongluong-so-voi-the-gioi-d291973.html
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