Deeply reduced when the USD appreciates on a large scale

Around 6 a.m. on April 26, gold price The world’s spot price traded at 1,900 USD/ounce, sharply down 32 USD from the previous day’s opening price of 1,932 USD/ounce. Gold price June term futures also fell by 38 USD/ounce, last traded at 1,896 USD/ounce.

The key outside markets saw crude oil prices plummeting and trading around $96.5 per barrel, putting pressure on gold prices today.

Gold price today (April 26) in Vietnam will be announced by businesses at 8:30 am and SJC gold price may change unexpectedly.

Previously, although the world gold price from 9 am to 5 pm on April 25 was weak, the price of SJC gold fluctuated insignificantly, closing at 70.25 million VND/tael at the end of the day.

Analysts said that the world gold price lost tens of USD/ounce last night in the context of the Covid-19 outbreak in China, which had a negative impact on global economic growth. Accordingly, to prevent risks, financial investors pooled capital in USD, helping this currency to appreciate on a large scale, forcing the price of gold to go down.

On the other hand, the US stock market rallied very strongly. The Dowjones rose 238 points, the S&P 500 gained 24 points, and the Nasdaq gained 165 points. This means that the cash flow into precious metals is very modest. The drop in gold prices today is inevitable.

Meanwhile, the report of the Commodity Futures Trading Commission (USA) showed that gold investment funds sharply reduced their long positions because the market expected that the US could raise the basic interest rate by 0.5 basis points. % in May 2022 and will increase further in June 2022 to cope with rising inflation. That means in the future USD can appreciate very strongly, putting pressure on the gold market.

With the above developments, speculators realize that holding gold is a disadvantage. Accordingly, they left the gold market to preserve capital. The world gold price sometimes fell by 42 USD/ounce, from 1,932 USD/ounce to 1,890 USD/ounce at 9pm on April 25.

After that, the gold price today increased slightly by 10 USD/ounce to jump to 1,900 USD/ounce at 6 o’clock on April 26.