Global gold prices surged nearly 2% on Friday (May 23), capping off the strongest weekly gain in six weeks. Investor risk appetite heightened after former US President Donald Trump issued fresh tariff threats, while a weaker US dollar provided additional support for the precious metal.
At the close of New York trading, spot gold jumped 62.2 USD/oz, or 1.89%, to 3,358.9 USD/oz, according to Kitco exchange data. Converted at Vietcombank’s selling exchange rate, this price is equivalent to 105.7 million VND per tael, a 1.7 million VND increase compared to Friday morning.
Gold futures on COMEX rose 2% to settle at 3,365.8 USD/oz.
Compared to the previous week, spot gold prices climbed over 5%, marking the biggest weekly gain since mid-April, while locally converted spot gold prices rose nearly 5 million VND per tael.
Vietcombank quoted the USD at 25,740 VND (buying) and 26,130 VND (selling) at the week’s close, up 20 VND at each end compared to the previous week’s close.
“Trump has exploded in the past 24 hours. His threats of 50% tariffs on Europe and warnings to Apple have made investors skeptical about the stock market and boosted gold prices,” said independent metals trader Tai Wong to Reuters. “The tariff concerns are back, and with liquidity thinning ahead of the long holiday weekend, gold price volatility could be amplified.”
On Monday, US financial markets will be closed for Memorial Day.
On Friday, Trump posted on the Truth Social platform that iPhones sold in the US should be made in the country, and if not, the company “should pay a 25% tariff, at least.” This marked the first time Trump has targeted a specific company in his tariff plans announced this year. Additionally, the former president also commented on the trade negotiations between the US and the European Union (EU), stating that they were going nowhere and suggesting a “straight tariff of 50% on the EU, starting June 1st, 2025.”
Trump’s statements heightened global investment risk appetite as the tariff war, despite recent de-escalation, still holds the potential for unpredictable developments. Moreover, these statements also exerted downward pressure on the US dollar, benefiting gold prices as the metal is priced in the greenback.
The Dollar Index closed Friday’s session with a decline of nearly 0.9% to 99.1 points, as per MarketWatch data.
This week, the Dollar Index fell nearly 2% as investors fretted over US debt and budget deficits following the House’s passage of a tax-cut and spending-increase bill.
Geopolitical risks remained elevated this week as negotiations on a Russia-Ukraine ceasefire and Iran’s nuclear program lacked concrete progress.
“If it breaks above the 3,500 USD/oz level, gold prices could surge to 3,800 USD/oz,” said Daniel Pavilonis, a strategist at RJO Futures.
The world’s largest gold ETF, SPDR Gold Trust, offloaded 1.4 tons of gold in Friday’s session, reducing its holdings to 922.5 tons, according to the fund’s website. This week, the fund purchased 3.8 tons of gold after four consecutive weeks of outflows.
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