World gold prices are on a sharp decline, currently losing more than 70 USD to the region of 3,215 USD/ounce. Photo: WSJ.

During the trading session on the night of May 1 and early morning of May 2 (Vietnam time), the world spot gold price witnessed a sharp drop of more than 70 USD to fall straight to the area of ​​3,215 USD/ounce, equivalent to a net decrease of more than 2% during the day.

According to Kitco News, this development occurred in the context of risk-on sentiment in global financial markets improving significantly, causing safe-haven demand for gold to weaken.

After reaching a historic peak of $3,500 per ounce in April, the world gold price has reversed and dropped sharply by nearly $300 to date, equivalent to a net decrease of nearly 9%. However, over the past year, this precious metal has still increased by 40%, reflecting its role as a safe haven in the context of global economic instability.

Gold's breakout phase mainly took place in the first quarter of this year when it was supported by risks surrounding tough trade policies, especially tariffs of US President Donald Trump.

However, as trade tensions between the US and its partners show signs of easing and risk appetite recovers, the appeal of gold has temporarily weakened. At the same time, the US dollar has strengthened as the USD Index - a measure of the greenback's strength in a basket of currencies - has just surpassed 100 points, making gold less attractive to international investors.

Another factor making the gold market cautious is the mixed signals from the US economy. GDP in the first quarter unexpectedly decreased by 0.3%, completely contrary to the market's expectation of a 0.4% increase.

In addition, the US ADP national employment report also disappointed, recording only 62,000 new jobs in April, less than half the expected number. These data are strengthening the possibility that the US Federal Reserve (Fed) may soon start a cycle of interest rate cuts.

The question is whether the Fed will act at the Federal Open Market Committee (FOMC) meeting on May 6-7 or wait until the mid-June meeting. That will depend on the April consumer price index (CPI), due on May 13. If inflation has not fallen enough, the Fed may continue to keep interest rates unchanged.

Despite the short-term volatility, experts remain positive about gold in the medium and long term. Billionaire investor John Paulson recently predicted that gold prices could reach $5,000 an ounce by 2028, thanks to the net buying trend of central banks and the risk of renewed global geopolitical and trade tensions.

For the remainder of 2025, the market is expected to maintain a price level around $3,200-3,300/ounce.

A recent Reuters survey also showed that investors forecast the average gold price for the whole of 2025 will exceed $3,000/ounce for the first time in history, reaching about $3,065/ounce, much higher than the $2,700/ounce in previous estimates.

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Source: https://baotayninh.vn/gia-vang-the-gioi-rot-manh-a189588.html