Gold price next week: Continue to struggle?

The domestic gold price has just witnessed a trading week with many increases and decreases around the mark of 69 million VND/tael. Gold prices are likely to continue their short-term tussle, experts say, after demand for the precious metal was hit by hopes for progress in peace talks between Russia and Ukraine. from the decision to raise interest rates in the US.

Closing the last trading session of the week, the price of SJC gold was listed by Saigon Jewelry Company Limited in Hanoi at 67.8 – 68.82 million VND/tael (buy in – sell out). increased by 100 thousand dong/tael in the buying afternoon and 120 thousand dong/tael in the selling afternoon compared to yesterday’s closing.

At this price, gold price decreased by 1.4 million dong in the past week. Specifically, the gold price dropped sharply in the first trading days of the week from March 14 to March 15, then fluctuated mixed before the meeting of the US Federal Reserve (Fed) on March 16. On March 17-18, when the US Federal Reserve (Fed) decided to raise interest rates for the first time in 2022, gold prices rebounded, but the fluctuation band was narrow.

Gold price continues to struggle in the short term?

At the same time, the world gold price has lost 2.8% in the past week, marking the biggest weekly decline since November 2021 until now.

Gold prices fell on Tuesday and posted their biggest weekly loss since November 2021, after demand for the precious metal was hit by hopes of progress in peace talks. peace between Russia and Ukraine and the impact of the US decision to raise interest rates.

Specifically, the US gold futures price lost 0.7% to 1,929.30 USD/ounce.

The speculative bias in gold has cooled massively over the past 10 days as the initial shock from the Russia-Ukraine conflict subsides, said David Jones, market strategist at Capital.com Online. gradually, leading to demand for this safe-haven asset.

Agreeing with the above statement, analyst Edward Meir of investment brokerage ED&F Man Capital Markets said that if there is a ceasefire or some kind of agreement between Russia and Ukraine, the price of gold could fall quite quickly. .

In general, the world gold market had a not very “brilliant” week when suffering from many unfavorable factors such as the decision to raise interest rates as expected by the Federal Reserve (Fed), the strengthening of USD and peace talks between Russia – Ukraine recorded positive developments.

Investors see the Fed’s decision to raise interest rates as an obstacle for gold in the short-term, as rising inflation in Europe and the US continues to support demand for the precious metal as a “hedge”. against inflation.

However, in a recent short report, Standard Chartered Bank analyst Suki Cooper said that the Fed’s rate hike has not dampened the positive sentiment in gold. The expert also noted that the current geopolitical risks have increased inflation concerns, sparking longer-term concerns for gold.

Edward Moya, senior market analyst at OANDA Investment Brokerage, said that the dollar will benefit from rising interest rates and a steady “safe-haven” flow, as investors today increasingly worried about the impact of the war in Ukraine on inflation and growth.

Gold could then face a rough patch in the short term with key support around $1,900 an ounce.

International markets analyst Carlo Alberto De Casa of Kinesis Money precious metals trading platform said that developments in the Russia-Ukraine conflict and the next decisions of the Fed will be the main drivers for the gold market.

Despite the recent drop, De Casa said, many investors are still bullish on gold and demand for the asset remains strong. Analysts believe that gold will receive support at two levels: the first is around $1,920 an ounce (the peak of gold prices in 2011), and the next is around $1,900 an ounce.

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