Gold prices rebound sharply after plunging

Gold prices today, April 24: Surging over 2% in the Asian market

Global gold prices continue to show high volatility within a wide trading range. This morning (April 24), in the Asian market, spot gold prices soared by more than $69 per ounce, equivalent to an increase of 2.13%, after dropping about 3% during overnight trading in the U.S.

Specifically, as of around 9:00 a.m. (Vietnam time), spot gold was quoted at $3,359.9/oz, up $69.9 from the previous New York session’s close, according to data from Kitco. When converted using Vietcombank’s USD selling exchange rate (26,174 VND/USD), the current gold price is equivalent to nearly 106 million VND per tael, slightly down by 300,000 VND compared to early morning April 23.

Gold price movements and signals from the U.S. financial market

During the April 23 session in the U.S., spot gold prices fell sharply, closing at $3,290/oz, a decline of $93.7/oz (or 2.8%). This marked a significant correction after gold reached a historic record above $3,500/oz in the previous session. On the COMEX exchange, gold futures dropped 3.7%, closing at $3,294.1/oz. However, prior to that, futures prices had also exceeded the $3,500/oz mark – the highest level ever recorded.

Key reasons behind gold’s sharp volatility

According to Phillip Streible, Chief Market Strategist at Blue Line Futures, the main reason for gold’s short-term decline is the rising risk appetite following a recent tariff-related shock: “Some investors are pulling funds out of gold – a safe-haven asset – to return to stocks like Apple and Tesla, which had previously been sold off.”

Additionally, U.S. President Donald Trump’s April 22 statement about adopting a “less confrontational” approach toward China in trade negotiations, along with comments from the U.S. Treasury Secretary indicating a potential for a major agreement with China, have temporarily calmed the markets. Reports from The Wall Street Journal and CNBC also noted that the U.S. government is considering reducing some tariffs on Chinese goods (by 50-65%), although such a move may be contingent on China reciprocating by cutting tariffs on American products.

Gold rebounds: Safe-haven demand remains strong

Despite several positive developments helping to ease market sentiment, gold prices surged again on the morning of April 24, indicating strong underlying demand for risk hedging. Analysts say gold-buying on dips remains robust, especially as the U.S.–China trade war shows no sign of ending soon. Markets also received a further boost when President Trump confirmed that he had no plans to dismiss Federal Reserve Chair Jerome Powell, a statement that helped stabilize investor sentiment and reduced some of the pressure for safe-haven gold buying driven by concerns over Fed independence.

Gold price outlook: Volatility expected to continue

According to Ole Hansen, a strategist at Saxo Bank: “The recent sharp upswing and downturn in gold prices reflect the potential risk of a deeper correction.” Meanwhile, TD Securities strategist Bart Melek believes that if the downtrend continues, the $3,100/oz level is a key support to watch.

U.S. dollar fluctuations, ETFs continue gold buying spree

The U.S. dollar rebounded strongly on April 23, with the Dollar Index closing at 99.84 points, up 0.9% from the previous session. However, the index pulled back this morning, at times dropping below 99.6 points. Notably, SPDR Gold Trust – the world’s largest gold ETF – bought a net 1.4 tonnes of gold, increasing its total holdings to 949.1 tonnes, signaling that financial institutions continue to believe in gold’s long-term potential.