Gold price going down in the short term?

The domestic gold market witnessed a prosperous trading week when the last session of the week traded over 70 million dong/tael, while the world gold price closed a downward trading week. According to experts’ analysis, gold prices may fall in the short term if the US Federal Reserve (Fed) can signal stronger action with interest rate hikes to curb rising inflation.

At the Hanoi market, at the close of trading at the weekend (April 23), the price of SJC gold was listed by Saigon Jewelry Company Limited at 69.55 – 70.37 million VND/tael (buy in). – sold), a decrease of 250,000 dong/tael in the buying afternoon and 130 thousand dong/tael in the selling afternoon compared to yesterday’s closing.

During the week, the gold price recorded an increase in the early morning trading of April 18; In the morning of April 19-20, gold price fell following the world’s downward trend and rebounded on the morning of April 21-22, before falling at the weekend. For the whole week, the domestic gold price was adjusted to increase by 400 thousand dong/tael.

Domestic gold price increased by 400 thousand dong/tael in the past week

On the contrary, despite a rather favorable start to the week when climbing to a one-month high, the world gold price closed a bearish trading week due to concerns about the possibility of higher US interest rates, while the USD and US government bond yields simultaneously strengthened.

By the last trading session of the week on April 22, the gold price continued to drop 1% with increasingly clear signs that the Fed will tighten monetary policy faster than expected, thereby boosting bond yields and boosting bond yields. USD goes up.

At the end of this session, spot gold fell 0.8 percent to $1,936.14 an ounce, after touching a two-week low at the start of the session. For the whole week, this item decreased by 1.9%. Meanwhile, gold futures delivery lost 0.5%, to 1,938.7 USD/ounce.

Jim Wycoff, senior analyst at Kitco said: “Gold – the safe-haven metal is in need of a new fundamental that could increase investor concerns, and that is not happening. The dull sideways movement we’re seeing has led to some technical-chart selling.”

Fed Chairman Jerome Powell said on April 21 that a 0.5 percentage point increase in US interest rates would be “discussed” when the agency meets in May. This shows that this bank can act more aggressively to curb rising inflation.

This hawkish stance helped the 10-year US Treasury yields extend gains and also boosted the dollar index higher.

In the physical gold market, dealers in India have reduced their discounts this week as demand picks up slightly after falling prices, while developments in China, the world’s top gold consumer, remain quiet. due to the COVID-19 pandemic.

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