On May 8, 2025, gold prices surged amid ongoing trade concerns and a weakening U.S. dollar, following the Federal Reserve's decision to pause its tightening measures. Gold regained traction, climbing above the $2,400 mark as geopolitical instability prompted investors to seek safe-haven assets.
The latest developments in global markets have been marked by a mix of uncertainty and cautious optimism. The price of gold (XAU/USD) rebounded significantly during the Asian trading session, driven by a wave of buying interest that emerged after a prior decline. This upward momentum is largely attributed to persistent safe-haven sentiment amidst escalating global instability and mixed signals from the Federal Reserve regarding its monetary policy.
President Donald Trump’s recent remarks have dampened expectations for a swift resolution to the ongoing trade tensions with China. He indicated that he is not in a hurry to sign any agreements and has no intention of lowering the 145% tariffs imposed on Beijing. This stance has raised concerns among investors, further solidifying gold's position as a preferred asset during times of uncertainty.
Adding to the geopolitical tension, Ukraine launched a significant drone attack on Moscow shortly after Russia announced a ceasefire. This aggressive move has heightened fears of further conflict in the region. Meanwhile, Israel conducted an airstrike on the main airport in Sanaa, Yemen, which is controlled by Houthi rebels. This action has sparked worries about a potential escalation of conflict in the Middle East. Additionally, ongoing tensions along the India-Pakistan border continue to contribute to a climate of instability.
In the context of these geopolitical developments, gold's appeal as a safe-haven asset remains strong. The Federal Reserve’s decision to maintain interest rates at 4.25% to 4.5% was anticipated, yet Chairman Jerome Powell's accompanying comments reflected a cautious outlook regarding rising economic risks, particularly those stemming from uncertain trade policies.
Despite the Fed’s cautious stance, the U.S. dollar has struggled to gain traction, contributing to gold's recovery. Market sentiment remains mixed; while gold benefits from geopolitical fears and uncertainty surrounding Fed policies, positive risk sentiment in the stock market and hopes for trade agreements under Trump have created headwinds for gold's ascent.
Investors are now closely monitoring Trump's press conference scheduled for 14:00 GMT, alongside weekly unemployment claims data from the U.S. These events could introduce significant volatility to the XAU/USD pair as market participants react to new information.
In a related development, the exchange rate between the Vietnamese Dong (VND) and the U.S. dollar (USD) as well as the Chinese Yuan (CNY) has seen a decline today. The central exchange rate of VND against USD at the State Bank of Vietnam is set at 24,927 VND/USD, reflecting a decrease of 3 VND compared to May 7, 2025.
The exchange rate ceiling has been established at 26,173 VND/USD, while the floor is set at 23,681 VND/USD. The reference exchange rate at the State Bank's transaction office currently stands at 23,734 - 26,126 VND/USD (buy-sell).
At commercial banks, as of 8:25 AM today, Vietcombank and BIDV have listed the USD exchange rate at 25,780 - 26,140 VND/USD (buy-sell). This indicates that the USD price at Vietcombank remained unchanged from the previous day, while BIDV has reported a decrease of 10 VND in both buying and selling rates.
Following a significant increase in the previous session, the CNY exchange rate has also turned down today. Vietcombank adjusted the CNY rate down by 5 VND in both buying and selling, now listing it at 3,537 - 3,650 VND/CNY (buy-sell). Similarly, BIDV has reduced its CNY rate by 5 VND, setting it at 3,555 - 3,652 VND/CNY (buy-sell).
As the day unfolds, analysts will be keenly observing how these economic indicators and geopolitical events will influence market trends. With gold maintaining its status as a refuge for investors amid turmoil, and currency rates reflecting broader economic sentiments, the financial landscape remains dynamic and closely watched.
