Gold price explodes! Concerns about US credit are driving investors to safety

Gold price explodes! Concerns about US credit are driving investors to safety

On May 20, 2025, the price of gold in the global market has witnessed a notable increase and is now at $3,222 per ounce. This represents a twenty dollar increase from the previous day's closing price of $3,203 per ounce. This increase is primarily due to several worrying developments in global financial and trade conditions. Loud Vietnam.vn In particular, the downgrade of the long-term creditworthiness of the USA by the rating agency Moody's and the associated increased uncertainty regarding the ability of the United States to repay its debts have come into focus.

The downgrade was seen as a historic turning point as the US lost its triple-A rating from all three major rating agencies. Report in this context Kettner precious metals about the causes, which include escalating budget deficits and rising interest costs. Shocking economic data and disappointing inflation figures are increasing pressure on the American financial system.

Increasing uncertainty in the markets

In addition to the rating downgrades, US Treasury Secretary Bessent announced that tariffs could be reintroduced if no progress is made in trade negotiations. These announcements have further heightened global trade tensions and are adding to uncertainty in the market. This leads to many investors fleeing into gold as a crisis currency, which explains its rising price.

In the first hours of trading this week, the gold price started with an increase of over 1%. This is also a response to the US credit rating downgrade, which sends a strong signal of confidence to the markets. June gold futures rose $39.10 to $3,226.30 an ounce on Monday, showing confidence in gold as a safe-haven asset remains.

Gold prices in Vietnam

In Vietnam, the selling price of SJC gold at the end of the previous day is VND119.3 million per tael, while the price of gold rings is listed at VND114.5 million per tael. These price adjustments reflect global trends and the general market situation, which creates significant challenges for investors.

In summary, current developments show that confidence in the stability of the American economy is decreasing and investors are increasingly retreating into safer investments such as gold. The situation continues to be closely monitored as European investors also pay attention to the upcoming inflation data.