The world commodity market, including gold, has just experienced a week of fluctuations following the decision by the US President Donald Trump's administration to impose reciprocal tariffs on exports from most other countries that want to enter the US.

This move caused the world gold price to decrease and transactions are mainly in a selling trend. On the morning of April 7, the world gold price decreased by 1.7 USD/ounce compared to the previous session, down to 3,035.1 USD/ounce.

This week, the world gold price fluctuated strongly and continued the sell-off trend of last week. Although still at a high level, the world gold price also fell from the highest mark of 3,036 USD/ounce to the lowest level of the week at 2,987 USD/ounce at some points.

According to experts' analysis, the selling pressure is dominating because investors want to recover capital to compensate for losses in the stock market due to the impact of the US government's sudden tax increase.

The precious metal's price plunge came amid significant losses in the US stock market that prompted investors to liquidate gold positions to create the liquidity needed to cover losses and handle margin calls in the stock market.

Today, April 7, the price of SJC gold bars is listed by most gold and gemstone trading units at 97.1 - 100.1 million VND/tael (buy - sell).

In particular, at Bao Tin Minh Chau, SJC gold bars are being bought at a higher price of 97.3 million VND/tael, or Phu Nhuan Jewelry Joint Stock Company is encouraging gold sellers by offering a buying price of 97.5 million VND/tael.

Basically, the current domestic gold price is almost unchanged from the closing price of the last trading session of the week. However, the difference between the buying and selling price of 3 million VND/tael is a large gap, but records from many trading points show that gold buying and selling activities are quite cautious and not much fluctuation.

Compared with the world gold price after converting according to the exchange rate of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), excluding taxes and fees, domestic gold is currently at a higher price difference than the world gold price of approximately 4.3 million VND/tael.

Also in the domestic market, the price of Hung Thinh Vuong 9999 gold rings of DOJI Gold and Gemstone Group is listed at 96.7 - 101.1 million VND/tael for buying and selling. Similarly, Bao Tin Minh Chau's Rong Thang Long gold is being offered at 97.6 - 100.3 million VND/tael, slightly higher than the price of SJC gold bars.

Analyzing the current gold price trend, according to the opinion of the Vietnam Gold Business Association, there are 3 reasons that are driving gold price fluctuations, that is the recent reciprocal tax policy of US President Donald Trump has caused concerns about a global trade war, which has caused a strong flow of safe haven money into gold.

In addition, the decree imposing a 10% tax increase on imported goods into the US and an immediate 20% - 26% increase on some major countries such as the European Union (EU), Japan, South Korea, etc. also created a wave of selling off risky assets.

Finally, the weakening of the US dollar (USD), as the Dollar Index fell 0.4 percentage points against a basket of international currencies, made the precious metal gold more attractive to foreign investors.

In the context of the market with many concerns about the possibility of an economic recession, the multinational financial group Goldman Sachs has raised the probability of a recession in the US from 20% to 35%, at the same time, noting that the announcement of the new US tax policy has triggered a wave of refuge in gold, creating conditions for this precious metal to firmly reach its historical peak.

This means that the newly announced “stronger than expected” US tax rate will be the perfect condition for gold to continue to set new highs in the short term.

The Vietnam Gold Business Association recommends that investors continue to monitor important macro data to be released soon, including the US employment report and reactions from international trade partners in the coming days to have appropriate strategies.