Gold on the decline

The precious metal gold, which is considered a hedge against economic and geopolitical instability, hit a record high of $3,500 an ounce last month amid tariff uncertainty that escalated the trade war. However, recently, when the US-China tariff negotiations showed signs of being feasible, the price of the precious metal gold turned around and fell sharply.

Gold on the decline as tax policy talks look positive.

According to the statement from both sides, the US will reduce the additional tariffs imposed on imports from China in April this year from 145% to 30%, while China will also reduce tariffs on imports from the US from 125% to 10%. This also has a positive impact on the health of the US dollar as the USD Index jumped to 101.68 points this morning, the highest level in more than a month.

A stronger USD makes gold more expensive for investors. However, according to financial analysts, the USD is likely to weaken further in the coming time and the US Federal Reserve (Fed) will cut USD interest rates three times this year. It is possible that at the July 2025 meeting, nearly 50% of the market thinks that. interest rates will be cut and the reduction level will be around 0.25%. At the September meeting, it is possible that there will be another interest rate cut, around 0.25%. In December 2025, there will be another reduction of 0.25%.

The market is currently waiting for the US consumer price index (CPI) data to be released today (May 13) to guide the Fed's policy. Gold prices fell as profit-taking pressure increased due to positive information in the market. Especially the news that the two major economies , the US and China, have reached initial agreements after negotiations. The agreement was announced after high-level negotiations in Geneva, Switzerland.

International gold prices fell, dragging down the domestic SJC gold bar price this morning. When the market opened, SJC Company bought 117.5 million VND and sold 119.5 million VND. But by noon, SJC increased the price of gold bars to 118-120 million VND/tael, 500,000 VND/tael higher than the opening price. However, the domestic SJC gold bar price is still about 18 million VND/tael higher than the world price, converted according to the exchange rate listed at the bank. The price of gold rings is still 112.5-115 million VND/tael, but still about 14 million VND/tael higher than the international price.

This morning (May 13), the central exchange rate between VND and USD announced by the State Bank was 24,973 VND, up 28 VND compared to yesterday. Meanwhile, Vietcombank increased by 10 VND, the transfer buying price was 25,790 VND/USD and the selling price was 26,150 VND/USD.

Source: https://baodautu.vn/vang-tren-da-di-xuong-d283185.html