Gold prices fall as global trade sentiment turns more positive

Illustration photo. Photo: Internet

At 0:45 a.m. on July 25, Vietnam time, spot gold price decreased by 0.5% to 3,370.69 USD/ounce; meanwhile, gold futures contract in the US ended the session with a decrease of 0.7% to 3,373.5 USD/ounce.

Market sentiment is positive on the prospect of trade deals between the US and its partners, first Japan and now possibly the European Union, said Aakash Doshi, an analyst at brokerage firm State Street Investment Management. He added that gold’s rally is being hampered by strong and low-volatility equity markets.

Progress is being reported in trade talks between the US and the EU, which could include a 15% base tariff on EU goods from the US, following the announcement of a separate deal between Washington and Japan earlier this week.

President Donald Trump made a surprise visit to the US Federal Reserve (Fed) late in the day, a move that added to uncertainty regarding the direction of monetary policy.

Trump’s move comes as he has repeatedly criticized Fed Chairman Jerome Powell for not cutting interest rates more aggressively. Any sign of interference with the Fed’s independence could be a factor supporting gold prices in the medium to long term, Doshi said.

The Fed is expected to keep interest rates unchanged at its July 29-30 meeting, but investors are still expecting a cut in September. Gold is sensitive to US interest rate policy, as lower interest rates will weaken the USD but at the same time increase the appeal of non-interest-bearing assets such as gold.

On the economic data front, the number of Americans filing for unemployment benefits unexpectedly fell last week, reflecting a firming labor market despite signs of slowing hiring and more difficulty finding work.

In other precious metals markets, spot silver prices fell 0.7% to $39.02 an ounce, while platinum prices also fell 0.5% to $1,405.15 an ounce.

In the domestic market, early in the morning of July 25, Saigon Jewelry Company listed the buying and selling price of SJC gold at 119.70 - 121.70 million VND/tael.

Source: https://doanhnghiepvn.vn/kinh-te/gia-vang-sut-giam-khi-tam-ly-thi-truong-ve-thuong-mai-toan-cau-tich-cuc-hon/20250725094913159