On May 7, 2025, gold prices surged to a two-week high of 3,400 USD per ounce, driven by escalating trade tensions and the ongoing India-Pakistan conflict. This increase of more than 2.70% was fueled by safe-haven inflows as investors grew increasingly concerned about U.S. trade policy and military tensions in South Asia.
Gold's rise came as the Chinese market reopened after a holiday, amidst a backdrop of geopolitical uncertainty. U.S. President Donald Trump’s announcement of flexibility regarding new tariffs contributed to market volatility, while conflicting statements from U.S. Treasury Secretary further unsettled investors. Wall Street closed in the red, reflecting a reassessment of trade policy prospects and anticipated actions from the Federal Reserve.
In South Asia, tensions escalated following India’s airstrikes on militant camps in Pakistan, prompting a warning from Pakistan’s Defense Minister about a potential confrontation. The situation in Kashmir and ongoing disputes over water resources between the two nations have heightened global anxiety, reinforcing gold's status as a safe-haven asset.
As investors await the Federal Reserve's monetary policy meeting scheduled for the end of the week, the outlook for gold remains strong. Analysts suggest that the combination of geopolitical instability and trade concerns will continue to support gold prices in the near term.
Meanwhile, the domestic fuel market in Vietnam has stabilized, with gasoline prices remaining unchanged since May 5, 2025. The maximum prices set are as follows: RON 95-III gasoline at 19,580 VND per liter, E5 RON 92 at 19,150 VND per liter, 0.05S diesel at 17,350 VND per liter, kerosene at 17,560 VND per liter, and Mazut oil at 16,190 VND per kilogram.
Since the beginning of the year, RON 95-III gasoline prices have fluctuated, increasing nine times and decreasing nine times. Diesel prices have seen eight increases, one stable period, and nine decreases. The latest price adjustments indicate a pause in the volatile trend observed earlier this year.
On the global stage, crude oil prices exhibited mixed movements on May 7, 2025. Specifically, crude oil for October 2025 delivery was priced at 54,300 JPY per barrel on the Tokyo exchange, reflecting a decrease of 1.22%. In contrast, Brent oil for July 2025 delivery on the ICE exchange was trading at 62.57 USD per barrel, an increase of 0.84%, while WTI crude for June 2025 delivery on the Nymex was at 59.58 USD per barrel, up 0.83%.
Analysts noted that the recent fluctuations in oil prices are influenced by various factors, including OPEC+ decisions to increase oil production for the second consecutive month. Tamas Varga, an analyst at PVM, highlighted that investors are closely monitoring trade developments and the potential for agreements in the oil market.
Geopolitical risks in the Middle East are also rising, particularly following Israel's attacks on Iranian-backed Houthi targets in Yemen, which were a response to attacks on Ben Gurion Airport. Despite these tensions, President Trump announced that the U.S. would cease airstrikes against the Houthis, contingent upon their agreement to stop obstructing critical maritime routes in the region.
Additionally, consumer spending in China has seen a boost during the International Labor Day holiday, contributing to the recovery of oil market activities after a five-day hiatus. The U.S. dollar index has dipped to its lowest level in a week against other currencies, as investors grow impatient with the pace of trade agreements. This decline in the dollar makes oil cheaper for buyers using other currencies.
In recent weeks, falling oil prices have prompted some American energy companies, such as Diamondback Energy and Coterra Energy, to announce cuts to their drilling operations. Analysts believe these actions could help bolster future oil prices by reducing overall production levels.
As the U.S. prepares to release weekly inventory data, estimates suggest that crude oil inventories have decreased by approximately 800,000 barrels in the previous week. If confirmed, this would mark the first consecutive weekly decline in inventories since January 2025.
Overall, the oil and gold markets are navigating a complex landscape of geopolitical tensions, trade uncertainties, and changing consumer behaviors. Investors are advised to stay vigilant as these factors continue to shape market dynamics in the coming days.
