Gold Price Today May 1: Volatile Swings and Sharp Decline After U.S. Economic Shock

The global gold market on May 1, 2025, witnessed extreme volatility, leaving investors on edge. Despite a brief recovery thanks to disappointing U.S. economic data, gold prices quickly reversed and plunged sharply, creating fresh turbulence in the precious metals market.

1. Global Gold Price Drops Sharply

According to Kitco News at 07:40 AM (Vietnam time), spot gold fell by $41.3, equivalent to a 1.26% decline from the previous session, to $3,246 per ounce (dropping to as low as $3,204 per ounce by 7:37 PM the same day). When converted at the current USD/VND exchange rate, the global gold price stands at around 102.5 million VND per tael (excluding taxes and fees), significantly lower than domestic gold prices.

At the same time, SJC gold in Vietnam was trading at 119.3 million VND per tael (buying) and 121.3 million VND per tael (selling). This means the gap between domestic and global gold prices remains wide, at approximately 18.8 million VND per tael.

2. Reasons Behind the Gold Price Plunge

Analysts believe that after a strong rally since the beginning of the year, gold is now facing significant profit-taking pressure. The shift of capital flows toward riskier assets like stocks and other commodities has also contributed to gold losing its shine.

Additionally, the sharp drop in crude oil prices (trading around $58.50 per barrel) and the negative performance of U.S. stock markets on April 30 have heavily impacted gold investor sentiment. Meanwhile, the U.S. dollar edged up slightly, and 10-year U.S. Treasury yields remained around 4.2%, adding further pressure on gold prices.

Notably, although gold saw a slight rebound after the U.S. released its April ADP employment report—showing only 62,000 new jobs (well below expectations of 120,000)—and Q1 GDP fell by 0.3% (contrary to the expected 0.4% growth), this recovery was quickly erased by the morning of May 1.

3. Related Market Developments

The U.S. stock market tumbled as major indexes dropped sharply, worrying investors ahead of the official April jobs report from the U.S. Department of Labor, set to be released on May 3. This report is considered the most important economic data so far in 2025 and could significantly influence the Federal Reserve's next policy moves.

In Asia, China’s economy is also under strain. April export orders fell to their lowest level since the pandemic, while industrial production hit its weakest point in over a year. Dow Jones Newswires reported that U.S. tariffs are exerting significant pressure on Beijing, likely prompting China to ramp up economic stimulus measures in the near future.

4. Gold Price Outlook

According to technical analysts, gold’s short-term trend remains unpredictable. For June gold futures, bulls continue to hold the technical edge if gold prices stay above key support levels.

The next goal for bulls is to close prices above the record resistance level of $3,509.90 per ounce. Meanwhile, bears are targeting strong support around $3,200.00. Key levels to watch include: immediate resistance at $3,337.60 and $3,363.80; immediate support at $3,300.00 and $3,270.80.

Investment Advice

In the context of global economic uncertainty and unstable gold prices, experts advise investors to remain cautious and closely monitor macroeconomic factors such as the U.S. jobs report, Fed’s monetary policies, and geopolitical developments. Long-term investments should be considered carefully, while short-term trades must adhere strictly to risk management principles.

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