On May 10, 2025, the price of gold saw a notable increase at the beginning of the trading session in the United States. The domestic gold price in Vietnam closed yesterday, May 9, at over 121 million VND per tael, marking a significant uptick in the market. By the end of the trading session on May 9, the closing price for SJC gold bars was reported at 119.5 to 121.5 million VND per tael (buying and selling), reflecting an increase of 1 million VND per tael compared to the previous trading day.
In addition, the SJC's 1-5 gold rings and Doji's 9999 gold rings were listed at 114 to 116.5 million VND per tael, remaining unchanged from the previous session. The upward trend in gold prices comes amid a backdrop of easing trade tensions between the United States and its partners, particularly following a significant trade agreement between the U.S. and the U.K.
On May 8, 2025, the U.K. announced it would reduce taxes on U.S. goods from 5.1% to 1.8%, expedite customs clearance for U.S. imports, and lower barriers for exports in various sectors, including agriculture, chemicals, energy, and industry. However, a basic 10% tariff on imports from the U.K. into the U.S. remains in effect. This agreement has injected optimism into the investment community, particularly as attention shifts to the upcoming U.S.-China trade negotiations scheduled for May 10, 2025, in Switzerland.
U.S. Treasury Secretary Scott Bessent confirmed his attendance at these crucial negotiations, which are expected to address the ongoing trade conflict between the two nations. President Donald Trump expressed his anticipation for a positive outcome from the discussions, as the negative impacts of the trade war on both economies have become increasingly apparent. A recent Bloomberg report indicated that cargo volumes at the Port of Los Angeles, the busiest container port in North America, have dropped by a third, underscoring the economic strain.
As investors closely monitor developments in U.S.-China relations, the foreign exchange market has noted a decline in the USD Index. Meanwhile, WTI crude oil prices are on the rise, trading around $61.25 per barrel, while the yield on the benchmark 10-year U.S. Treasury bond is currently at 4.382%.
Experts have identified U.S.-China trade tensions as a critical factor influencing the global gold market. Gold is often viewed as a safe haven asset during times of economic and geopolitical instability, with prices typically soaring when trade tensions escalate. Tim Waterer, a market analyst at KCM Trade, noted that the trend of purchasing gold during price dips remains strong. This buying behavior has helped to mitigate declines in gold prices, although demand for gold as a store of value has softened somewhat due to the recent trade agreement between the U.S. and U.K.
Waterer also emphasized that the outcome of the U.S.-China trade negotiations would be pivotal in determining whether gold prices trade above or below the $3,300 per ounce mark in the upcoming week. Analysts suggest that the Federal Reserve's decision to maintain interest rates indicates a cautious approach in light of ongoing global economic uncertainties, which may continue to provide upward momentum for gold prices in the medium to long term.
On May 9, 2025, at 13:22 local time, spot gold prices increased by 0.4% to $3,317.39 per ounce, having risen more than 2% since the start of the week. Gold futures in the U.S. also experienced a 0.5% increase, reaching $3,321.80 per ounce. Prior to this uptick, spot gold prices had dipped to $3,274.38 per ounce following the U.S.-U.K. trade announcement, which diminished gold's appeal as a secure investment.
Tim Waterer reiterated that the prevailing trend of buying gold during price reductions plays a significant role in stabilizing gold prices. He reiterated the importance of the forthcoming U.S.-China negotiations in determining gold's trading trajectory in the near future. Traditionally regarded as a reliable asset in the face of economic and political turmoil, gold often sees price increases in low interest rate environments.
In India, gold dealers are currently offering discounts due to weak demand, while a weaker rupee has pushed domestic gold prices near record highs. Conversely, gold purchases in China have rebounded following the holiday period. In Vietnam, as of 15:17 on May 9, the Saigon Jewelry Company listed SJC gold prices at 119.50 to 121.50 million VND per tael (buying and selling).
The market is now keenly awaiting the results of the U.S.-China trade talks, which could have substantial implications for the gold market. As negotiations unfold, analysts and investors alike will be watching closely to gauge their impact on gold prices and overall market stability.
