USD soars, gold continues to fall sharply

Domestic gold price

Open the market on April 28, SJC’s gold price of 9999 today in Hanoi increased by 50 thousand dong in the buying afternoon and decreased by 50 thousand dong in the selling afternoon compared to the end of yesterday’s session. Specifically, at 8:46 am on April 28, 9999 gold was traded by Doji Jewelry Group and SJC as follows:

SJC and DOJI gold price list updated at 8:46 am on April 28

End of session 27/4, gold price 9999 The domestic market is listed by SJC and Doji Jewelry Group in the order of buying and selling as follows:

SJC Hanoi: 69.35 million VND/tael – 70.07 million VND/tael

Doji Hanoi: 69.30 million VND/tael – 70.00 million VND/tael

SJC HCMC: 69.35 million VND/tael – 70.05 million VND/tael

Doji Ho Chi Minh City: 69.30 million VND/tael – 70.00 million VND/tael

International gold price

Until 9:30 am today (April 28, Vietnam time), world spot gold price stood around the threshold of 1,883.3 USD/ounce, down 13.7 USD/ounce compared to last night. The price of gold for June delivery on the Comex New York exchange was at $1,882.9 per ounce, down $16.1 per ounce compared to last night.

On the night of April 27 (Vietnam time), the world spot gold price stood around the threshold of 1,897 USD/ounce. Gold for June delivery on the Comex New York exchange was at $1,899 an ounce.

The world gold price on the night of April 27 was about 0.1% higher ($2/ounce) than at the beginning of 2021. World gold converted to bank dollars was priced at 53.1 million dong/tael, excluding tax. and fees, about 16.9 million VND/tael lower than the domestic gold price by the end of the afternoon session on April 27.

Gold prices in the international market continued to decline sharply in the context of the USD continuously climbing. The DXY index, which measures the volatility of the dollar against a basket of six major currencies, has reached 102.6 points. This is a new high in the past 2 years.

Gold’s price decline was also due to the deep downward pressure on the US stock market, causing many investors to sell gold to avoid selling off their stocks in the case of margin loans on the stock market.

Gold trading activity in China’s largest gold consuming country also declined when many major cities were locked down to prevent the spread of Covid-19.

Although the price dropped sharply due to the soaring USD, precious metal items were caught at the bottom quite a lot. ETFs around the world bought an additional 185 tons of gold, worth about $15 billion, in March. This is the highest monthly purchase since July 2020.

Gold price forecast

Gold is forecasted to continue to be under selling pressure when the USD still has no signal to stop before the US Federal Reserve’s (Fed) monetary policy meeting in early May, which is likely to be almost certain. sure this agency will increase interest rates by 50 percentage points from the current 0.25-0.5% to 0.75-1%.

However, the possibility of a deep reduction is not great because gold is still considered a hidden asset for investors when the world has so many unstable factors like now, from Covid-19 pandemic still raging until war and strife.

According to Commerzbank, gold may rise back to $2,000/ounce in the second quarter. However, the average price of the whole year will be only 1,900 USD/ounce. That means Commerzbank believes that, at times, gold will go very low.

V. Minh