Gold prices have seen a modest uptick in Vietnam, with the gold bar price rising by 0.3% to VND98.2 million (around $3,836.69) per tael, while the gold ring price also gained around 0.3%, reaching VND98 million per tael. A tael is equivalent to 37.5 grams or 1.2 ounces.
Globally, spot gold remained steady at $3,019.72 per ounce, while U.S. gold futures eased slightly by 0.1% to $3,023.60 on Wednesday. Market participants are adjusting positions ahead of potential announcements related to U.S. President Donald Trump’s reciprocal tariff policies, which are causing increasing anxiety over inflation and economic slowdown.
Key Factors Influencing Gold Prices
U.S. Economic Concerns: The U.S. Consumer Confidence Index plunged to its lowest level in more than four years in March, with many households fearing a recession and the inflationary effects of tariffs. These fears are further exacerbated by expectations of reciprocal tariffs on April 2, which are likely to fuel inflation and slow economic growth, providing support for gold as a hedge against these uncertainties.
Trump’s Tariff Plans: The market remains on edge as Trump’s tariff policies, expected to be inflationary and potentially lead to a stagflationary environment, are weighing on the outlook for the U.S. economy. This, in turn, benefits gold, which is seen as a safe-haven asset during times of economic turmoil.
Gold’s Strong Year-to-Date Performance: Gold has surged 15% so far this year, reaching an all-time high of $3,057.21 on March 20. The combination of economic uncertainty, inflationary fears, and geopolitical tensions has contributed to this rally.
Future Price Forecast: Analysts, such as Soni Kumari, a commodity strategist at ANZ, believe that gold could hit $3,200 by September due to concerns over economic growth and inflation. However, the outlook could be impacted if the Federal Reserve adopts a hawkish stance on interest rates, potentially slowing gold’s momentum.
Market Sentiment
Gold’s steady price movement reflects a balance between inflation concerns driven by Trump’s tariff policies and the market’s cautious stance ahead of the tariff announcement. While geopolitical and economic risks provide a solid foundation for gold’s rally, the market is also keeping a close eye on the U.S. Federal Reserve’s stance on interest rates, as any hawkish comments could dampen gold’s upside.
Conclusion
Gold’s positive trajectory is expected to continue in the near term, driven by growing fears of inflation and recession in the U.S. due to Trump’s tariffs. Despite minor fluctuations, the $3,000 mark remains a key level of support, and with economic concerns likely to persist, gold may continue to climb toward new highs.
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