The gold market starts the new week with a slight increase after the first decline of 2025. Amid concerns about the economy as US President Donald Trump prepares to impose heavy import tariffs on Canada, Mexico, and China, money flows are seeking gold as a safe haven asset.

Gold prices recover after a week of adjustment

According to data from the exchange #FXCE , gold opened at 2,873 USD/ounce, creating an increase of 14 USD compared to last week's closing price. After a 2.7% decrease last week due to profit-taking pressure, gold is currently trading around 2,870 USD/ounce, indicating that investor sentiment still leans towards holding this precious metal.

Trade tensions trigger fears of economic recession

Mr. #TRUMP is expected to impose a 25% tariff on imports from Canada and Mexico this week, while also planning to double tariffs on China, raising concerns about the weakening of the US economy. As financial markets predict that these moves could slow growth, gold becomes the top choice due to its status as a defensive asset against economic instability.

In addition, the market is also anticipating that the Federal Reserve (Fed) may soon cut interest rates to support the economy. This further bolsters the appeal of gold as bond yields decrease, making non-yielding assets like gold more attractive.

Inflation and worries about stagflation drive gold prices

Another factor supporting gold prices is the risk of sustained high inflation. The new tariff policies of the $TRUMP administration may increase the costs of imported goods, continuing to put pressure on consumer prices. Over the past week, the Bloomberg Dollar Spot Index has risen sharply, reflecting the view that US inflation may not have completely cooled down.

Additionally, recent economic data suggests that the US may be entering a stagflation phase – when the economy grows slowly but inflation remains high. This is an ideal environment for gold to fulfill its role as a store of value, as it is often favored during times of instability.

Looking ahead: Could gold break out soon?

While gold prices have decreased from the record high earlier this year due to profit-taking pressure, the long-term trend remains favorable for this precious metal. Risk factors from the US economy, the Fed's monetary policy, and Trump's trade war may continue to support gold prices in the near future.

Currently, the market is closely monitoring the Fed's actions and new statements from the White House to determine the next direction for gold. If economic risks continue to rise, it is not excluded that gold prices will set new highs in 2025.

What do you think about the outlook for gold in the near future? Please share your thoughts! #anhbacong