The reversal came after US President Donald Trump said he would not fire the chairman of the US Federal Reserve (Fed), while also signaling progress on the issue of tariffs with China.

Spot gold fell 3% to $3,281.60 an ounce at 0:43 a.m. Vietnam time after hitting a record high of $3,500.05 an ounce in the previous session. US gold futures also fell 3.7% to close at $3,294.10 an ounce.

Phillip Streible, a market strategist at Blue Line Futures, said the market is losing its grip on tariffs, with capital moving away from safe haven assets and into stocks like Apple and Tesla.

Confidence in financial markets generally improved and the dollar recovered after Mr Trump withdrew his threat to fire Fed Chairman Jerome Powell after days of criticizing him for not lowering interest rates.

US Treasury Secretary Scott Bessent said he believes the high tariffs between the US and China will need to be reduced before the two sides can enter into trade negotiations.

Gold - often seen as a safe-haven asset during times of political and financial uncertainty - has gained more than 26% since the start of 2025, as central banks ramped up buying in response to the tariff war.

Ole Hansen, head of commodity strategy at Saxo Bank, said that technically, the sudden rise of gold prices above $3,500/ounce and then a sharp reversal suggests the risk of a deeper correction in the short term.

In Vietnam, at 6:07 a.m. on April 24, Saigon Jewelry Company listed the price of SJC gold in the Hanoi market at 116.50 - 119.50 million VND/tael (buy - sell).