World gold price increased by 6% last week

Gold is displayed at the Shchyolkovo plant of Yuzhuralzoloto Precious Metals Group, Russia. Photo: TASS/TTXVN

The main driving force comes from escalating US-China trade tensions and the weakening of the USD, causing investors to seek this precious metal as a "safe haven" channel.

Gold prices started the week (April 7) with a loss of more than 2%, as investors turned to the US dollar as a safe-haven asset after the US's sweeping tariff policy raised concerns about a global economic recession. However, analysts remained optimistic about the outlook for gold amid economic challenges.

In the following trading session (April 8), gold prices turned to increase and maintained this trend until the end of the week. The increase in gold prices was driven by investment flows seeking safe assets amid escalating US-China trade tensions.

US President Donald Trump said on April 9 that he would suspend plans to impose reciprocal tariffs on trading partners, except China, for 90 days. Investors have been pulling money from stocks and industrial commodities to gold due to concerns that tariffs will fuel inflation and slow economic growth.

Gold, considered a safe haven in times of political and financial uncertainty, has gained 15% since the start of the year. Meanwhile, the US dollar index, which measures the greenback against a basket of major currencies, has fallen, making gold cheaper for holders of other currencies.

World gold prices rose nearly 3% to an all-time high in the session on April 10, as the US dollar fell and the trade war between the US and China escalated.

By the end of the week on April 11, the price of gold surpassed the 3,200 USD/ounce mark, as fears of a widespread recession prompted a strong flow of money into the precious metal market as a safe haven.

Specifically, at 1:32 a.m. on April 12, Vietnam time, the spot gold price increased by nearly 2%, to 3,235.89 USD/ounce, after reaching a record of 3,245.28 USD/ounce earlier in the session. The US gold futures price also increased by 2.1%, closing at 3,244.60 USD/ounce. Overall, the gold price increased by more than 6% for the week.

Gold is seen as a safe haven amid the turmoil in the world caused by President Trump’s trade war, said Nitesh Shah, a commodity strategist at WisdomTree. The dollar weakened and US Treasury bonds sold off as confidence in the US as a reliable trading partner declined.

In the latest development, China increased tariffs on US goods to 125%, further escalating the confrontation between the world's two largest economies. The US dollar fell against many major currencies, making gold - priced in dollars - more attractive to investors holding other currencies.

In addition, the increase in gold prices is also supported by a series of other factors, including strong buying activities of central banks, expectations that the US Federal Reserve (Fed) will soon lower interest rates, geopolitical instability, as well as money flowing into gold ETFs.

Data released on April 11 showed that U.S. producer prices unexpectedly fell 0.4% in March 2025, raising expectations that the Fed will have more room to cut interest rates to support the economy. Investors now expect the Fed to cut interest rates starting in June, with a total cut of about 90 basis points before the end of the year.

Mr. Tai Wong - an independent metals trader - commented that although there may be a small adjustment in the short term, the outlook for gold is still very positive.

However, several factors could limit the upside in gold prices, according to analysts at UBS. These include the possibility of easing geopolitical tensions, a return to cooperative trade relations or a significant improvement in the US economy.

In other precious metals, spot silver rose 3.2% to $32.18 an ounce, while palladium rose 0.7% to $914.87 an ounce. Platinum, on the other hand, fell 0.2% to $936.36 an ounce.

According to Baotintuc.vn

Source: https://baohoabinh.com.vn/12/200091/Gia-vang-the-gioi-tang-6-tr111ng-tuan-qua.htm