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Gold price today March 20: A turbulent week, the biggest drop in 4 months

Gold prices in the country and the world ended the week with the strongest drop since the beginning of this year in the context of peace negotiations between Russia and Ukraine and the impact of the US decision to raise interest rates.

Domestic gold price

End of trading session yesterday, gold bar price 9999 Listed at SJC and Doji are as follows:

SJC Hanoi: 67.8 million dong/tael (buy in) – 68.92 million dong/tael (sold out)

SJC HCMC: 67.8 million dong/tael (buy in) and 68.9 million dong/tael (sold out)

Doji Hanoi: 67.7 million dong/tael (buy in) and 68.9 million dong/tael (sold out)

Doji Ho Chi Minh City: 68 million dong/tael (buy in) and 69 million dong/tael (sold out)

Gold price today March 20: A turbulent week, the biggest drop in 4 months
Gold price today

International gold price

On the world gold market, spot gold price in the US increased by 15.2 USD/ounce to 1,942.4 USD/ounce. Gold futures for delivery in April 2022 on the Comex New York exchange increased by $34 to $1,943.2 per ounce.

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

Last week, gold prices fell due to the Russia-Ukraine crisis with some positive developments. Besides, the price of gold decreased because the commodity closely related to gold, namely oil, fell. Crude oil price gradually returned to the threshold of USD 100/barrel (from the peak of USD 140 last week) thanks to positive signs from Russia-Ukraine negotiations.

At the end of the meeting on March 16, the Fed announced that it would raise interest rates by 0.25 percentage points, to about 0.25-0.5% and also announced plans for upcoming rate hikes.

The price of gold is very sensitive to rising US interest rates. This increases the opportunity cost of holding non-yielding gold. Higher interest rates, aimed at curbing inflation, also reduce gold’s appeal as an inflation hedge.

Gold prices fell and is approaching the threshold of $ 1,900 / ounce in the context of the US tightening monetary policy to fight inflation, which is at a record high in the past 40 years. The USD recently appreciated and is hanging at a multi-month high against a basket of 6 major currencies also putting pressure on gold.

Demand for gold in Russia increased sharply after the country announced the removal of VAT (nearly 20%) for gold buyers. According to the Central Bank, the share of gold in national reserves has increased from 21% to 40%.

According to the World Gold Council, the demand for gold bars and gold coins is estimated at 1,124 tons in 2021, the highest level in a decade, German and American investors invest record amounts of money.

Money into gold ETFs around the world is growing globally. According to WGC, gold ETFs receive up to 35.3 tons of gold.

Gold price forecast

According to technical analysis, if the gold price surpasses the level of 1,950 USD/ounce, the buying force will increase strongly and create the premise to touch the resistance level of 1,975 USD/ounce. Further down, the next resistance is at $2,000/ounce. In the bearish scenario, the nearest support for gold is at $1,915 per ounce.

According to the World Gold Council (WGC), gold demand continues to grow. In 2021, the world saw gold demand skyrocket to its highest level in nearly a decade.

A representative of Forbes & Manhattan predicts that the gold price cycle will continue to increase and gold may reach $4,000/ounce in the next 4-5 years, equivalent to about VND110 million/tael.

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