World gold prices fell in the trading session on May 1st, in the context of the market being double-shocked by strong oil prices and expectations of high interest rates for a long time.
At 16:37 on May 1 (Vietnam time), world gold prices were listed around the threshold of 4,570.1 USD/ounce, heading towards a week of price decrease. Selling pressure appeared in low liquidity conditions when major markets such as China and India closed for holidays.
According to analysts, the main reason for the weakening of gold prices comes from the upward momentum of oil prices, thereby raising concerns about global inflation. Brent oil prices remain above the 110 USD/barrel mark as geopolitical tensions in the Middle East show no signs of cooling down, especially the risk of supply disruption in the Strait of Hormuz.
Mr. Ilya Spivak - Head of Global Macroeconomics at Tastylive, said that the market is returning to a "war trading scenario", in which oil prices increase and gold weakens after a short correction.
US economic data also contributes to putting pressure on gold. Inflation in the US accelerated in March due to rising gasoline prices, increasing expectations that the US Federal Reserve would maintain tight monetary policy for longer. Many financial institutions have adjusted forecasts, narrowing expectations of interest rate cuts in 2026, and even some view that there will be no reduction.
Not only the US, a series of major central banks such as the European Central Bank and the Bank of England also simultaneously maintained interest rates unchanged in recent meetings, while signaling caution in the face of inflationary pressure.
In the context of high interest rates, gold - which is an unprofitable asset - becomes less attractive than other investment channels. This is a key factor that makes cash flow tend to leave the precious metals market.
In other metals, spot silver increased by 0.5% to 73.37 USD/ounce; platinum decreased by 0.7% to 1,972.32 USD/ounce; while palladium decreased slightly by 0.1% to 1,523 USD/ounce (at 1:55 PM Vietnam time).
Analysts believe that in the short term, gold price movements will continue to depend on fluctuations in oil prices and global monetary policy expectations, especially signals from the Fed.
See more news related to gold prices HERE...
