Safe-haven demand pushes gold prices up more than 1%

Gold bars are sold at a store in Tokyo, Japan. Photo: AFP-TTXVN

Spot gold rose 1.2% to $3,120.01 an ounce as of 06:55 GMT (13:55 Vietnam time). In the previous session, gold recorded its strongest increase since October 2023. US gold futures also rose 1.9% to $3,137.20 an ounce.

US President Donald Trump announced on April 9 that he would raise tariffs on imports from China to 125%, up from 104% previously. This is the latest development in a series of tit-for-tat tariff moves between the world's two largest economies over the past week.

However, Mr. Trump also temporarily postponed tariffs for 90 days on a number of other countries.

“We believe that if the economy enters a period of slow growth – our baseline scenario – interest rates will fall and that will push gold higher, as tariff-driven inflation concerns persist for much of the year,” said Edward Meir, an analyst at Marex. “We expect gold to hit $3,200 an ounce by the end of the month, or even sooner.”

Gold prices have risen more than 18% since the beginning of 2025, thanks to factors such as the Trump administration's new tax plan, expectations that the US Federal Reserve will cut interest rates, geopolitical tensions in the Middle East and Ukraine, strong buying by central banks, and increased inflows into gold ETFs.

Minutes of the Fed’s most recent meeting showed policymakers were broadly in agreement that the US economy faces the risk of “high inflation and slow growth,” with some officials warning of “difficult trade-offs” ahead.

As a non-yielding asset, gold could lose its appeal if the Fed is forced to maintain high interest rates to control inflation.

The market is now awaiting the US Consumer Price Index (CPI) report, scheduled to be released on April 10 (local time) and the Producer Price Index (PPI), which will be released on April 11.

In line with the world gold price, after the US suspended tariffs for 90 days, the domestic gold price increased sharply on the morning of April 10, reaching a new peak of 103.4 million VND/tael. This afternoon, at 2:30 p.m., Bao Tin Minh Chau Company listed the price of gold bars and gold rings at 100.9 - 103.92 million VND/tael (buy - sell).

According to baotintuc.vn

Source: https://baodanang.vn/kinhte/202504/nhu-cau-tru-an-an-toan-day-gia-vang-tang-hon-1-4003406/