Gold price crashes: strong dollar and trade conflicts weigh on!

Gold price crashes: strong dollar and trade conflicts weigh on!

On May 29, 2025, the world gold price fell to $3,257 per ounce. This drop of $83 compared to the previous day's high of $3,340 is related to a strong US dollar, making the precious metal more expensive for investors outside the US. The fall in gold prices is seen as a direct result of investors' improved risk appetite, boosted by a more conciliatory US stance on trade issues with China and the EU. In times of global stability, less cares, leading to reduced demand for gold, traditionally considered a safe haven. According to Vietnam.vn, the price of SJC gold in Vietnam was VND118.7 million per tael at the end of May 28.

Additionally, the price of gold rings is around VND 114 million per tael. The general market situation is characterized by uncertainty, particularly with regard to the upcoming labor market data in the USA, which is expected in April and is seen as a potential trigger for high price fluctuations. The labor market is showing early signs of weakness, with only 129,000 new jobs added in April, well below the minimum of 250,000 needed to keep the unemployment rate stable. These developments could further fuel volatility in the gold market.

Global economic influences

Markets are also looking forward to the upcoming release of GDP data for both Germany and the USA on Wednesday. Germany expects slight growth of 0.2% compared to the previous quarter, while the USA forecasts a slowdown from 2.4% in the final quarter of 2024 to 0.4% in the first quarter of 2025. The Atlanta Fed even expects negative growth of -2.5% for this quarter. These economic indicators could also have a significant influence on the gold price development.

The gold market is currently in a correction phase after recently reaching as high as $3,500 per troy ounce. Currently, the price of gold is $3,288.15 per ounce, which is 6.4% below the all-time high but 24.6% higher than at the beginning of the year. For investors in euros, the precious metal is up 14.5% since the beginning of the year.

Trade and geopolitical factors

Geopolitical tensions, particularly with regard to the Ukraine conflict, are also perceived as important factors. US Secretary of State Marco Rubio has described the coming week as “a decision week”, which could further weigh on market behavior. In an environment where uncertainty is increasing due to trade wars and supply chain problems, the price of gold remains an important indicator of economic stability.

In summary, there are circumstances both within the market and due to extreme economic uncertainty that will continue to influence gold prices. The combination of a strong US dollar, reduced demand and geopolitical tensions could shape developments in the gold sector.

For more detailed insights into the current market situation and the factors that determine price movements, we refer to the reporting by Vietnam.vn and Gold.de.