The world gold market is experiencing significant adjustment pressure as it continues to reflect a downward trend following a record peak earlier this week. On the evening of April 27, 2025, US time, the price of gold was fluctuating around the threshold of 3,300 USD per ounce, indicating a cautious sentiment among investors.
As of the morning of April 28, 2025, Vietnam time, the spot gold price was commonly traded between 3,310 and 3,320 USD per ounce. This price represents a decrease of approximately 30-31 USD per ounce, or about 0.9% to 1%, compared to the previous trading session’s closing level on April 26, 2025. Notably, gold had surged to nearly 3,500 USD per ounce at the beginning of the week, only to witness a significant sell-off shortly thereafter.
In the Asian trading session on April 28, the spot gold price continued to oscillate within a narrow range around 3,300 USD, with no strong breakout from this price level. This recent downward adjustment can be attributed primarily to the market's reaction to economic data released in the United States, as well as changes in investors' risk appetite.
Recent economic reports from the United States have presented mixed signals, creating enough uncertainty to influence market behavior. While concerns about economic growth persist—evidenced by declining consumer sentiment—inflation expectations remain high. This scenario has led to uncertainty regarding the Federal Reserve's monetary policy trajectory. Although there has been no new information from the Fed during this period, investors are meticulously analyzing every piece of data to predict the next moves, which directly impacts the strength of the US dollar and US Treasury yields.
The strength of the US dollar and rising Treasury yields have also exerted pressure on gold prices. When economic data suggests potential impacts on interest rate cuts or increases in demand for other safe-haven assets, the dollar tends to strengthen. A stronger dollar makes gold, which is priced in US currency, more expensive for buyers using other currencies, thereby reducing demand. Similarly, rising Treasury yields make holding bonds more attractive compared to gold, which does not offer periodic returns. This combination of a stronger dollar and increasing yields has put downward pressure on gold prices.
Additionally, profit-taking and capital flow shifts have contributed to the recent sell-off. After reaching unprecedented highs, many investors opted to lock in profits, which intensified selling pressure. Furthermore, as geopolitical concerns have eased or signs of stabilization emerge in riskier asset markets like equities, capital tends to flow out of gold in search of higher-yielding opportunities.
The recent price drop is viewed as a correction following a meteoric rise, where gold prices soared from around 2,000 USD per ounce at the beginning of 2024 to nearly 3,500 USD per ounce in April 2025. The primary drivers of this dramatic increase include strong demand for gold from central banks around the world and its role as a safe-haven asset amid economic and geopolitical uncertainties.
Major financial institutions maintain a positive long-term outlook for gold prices. Analysts from Goldman Sachs, Citigroup, JP Morgan, and several other banks predict that gold may continue to reach new heights, potentially hitting or exceeding 4,000 USD per ounce in 2025 or 2026. Factors supporting this optimistic outlook include ongoing demand from central banks, persistent inflation in certain regions, and underlying geopolitical risks.
As of April 28, 2025, the gold market is in a consolidation phase after a sharp decline, searching for a new equilibrium around the 3,300 USD per ounce mark. In the short term, gold prices may continue to fluctuate and will be influenced by upcoming US economic data and the movements of the dollar and Treasury yields. However, many fundamental factors are expected to support gold prices in the medium to long term.
In the domestic market, as of 13:15 on April 28, 2025, the Saigon Gold, Silver, and Gemstone Company and Bao Tin Minh Chau Company listed the price of gold bars at 118 to 120 million VND per tael (buying and selling), which is a decrease of 1 million VND per tael in both buying and selling compared to the previous day. Meanwhile, the Phu Nhuan Jewelry Joint Stock Company listed the price of gold bars and rings at 113 to 116 million VND per tael, down 1.5 million VND per tael in both buying and selling.
At 13:38:53 on April 28, the spot gold price on Kitco was recorded at 3,289.47 USD per ounce, reflecting a decrease of 43.13 USD, or 1.2%, in the past 24 hours. When converted to the current exchange rate at Vietcombank, the world gold price is approximately 103.789 million VND per tael (excluding taxes and fees). Based on the free market exchange rate of 26,390 VND/USD, the world gold price is around 105.2 million VND per tael (excluding taxes and fees).
In summary, the gold market faces a period of adjustment following a significant rise earlier this month. Investors are observing market conditions closely, as the interplay of economic data, currency strength, and investor sentiment will likely dictate the future trajectory of gold prices. While the short-term outlook may remain volatile, the long-term fundamentals suggest a resilient gold market poised for potential growth.
