Falling sharply, stocks falling, USD rising

Domestic gold price

End of session 9/5, 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: 69.60 million VND/tael – 70.32 million VND/tael

Doji Hanoi: 69.55 million VND/tael – 70.20 million VND/tael

SJC HCMC: 69.70 million VND/tael – 70.30 million VND/tael

Doji Ho Chi Minh City: 69.60 million VND/tael – 70.40 million VND/tael

International gold price

On the night of May 9 (Vietnam time), the world spot gold price stood around the threshold of 1,860 USD/ounce. Gold for June delivery on the Comex New York exchange was at $1,862 an ounce.

The world gold price on the night of May 9 was about 0.7% higher (13 USD/ounce) than at the beginning of 2021. World gold converted to USD at the bank was priced at 53.4 million VND/tael, excluding tax. and fees, about 16.9 million dong/tael lower than the domestic gold price as of late afternoon session 9/5.

Gold prices in the international market dropped sharply in the context of a rapid rise in the USD. Oil prices and world stocks faced strong selling pressure.

Precious metals were under strong downward pressure due to soaring US bond yields. The dollar hit a 20-year high. While global stocks mostly dropped in the first session of the week. The US S&P 500 and Nasdaq technology indexes hit 12-month lows and have fallen into a downtrend.

Yields on US 10-year bonds jumped to a 4-year high of 3.18%/year. The market is concerned that global inflation will fall out of control.

Gold failed to hold above $1,900 an ounce last week and ended the week down 1.6 percent as financial and commodity markets reacted erratically to the U.S. Federal Reserve (Fed). raise interest rates by 50 percentage points.

The financial markets wobble, causing many investors to lose money. Gold sales increased sharply to cover losses for other investment channels.

The rapid strengthening of the USD made the gold price slide down without stopping.

The USD rose again when market back to betting on the possibility that the Fed will accelerate the monetary tightening process in the coming months after being cautious in the early May policy meeting.

Fed Chairman Jerome Powell said that the Fed can achieve its goal of cooling down inflation by tightening monetary policy aggressively this year without pushing the country’s economy into recession. But many experts are concerned that the Fed’s decision to raise interest rates could push the US economy into recession sooner.

Gold price forecast

However, many experts believe that gold will still increase in price. A representative of State Street Global Advisors said that the stock market is the main subject of pressure when interest rates rise.

If the stock market stabilizes again and the USD appreciation is not strong, gold will rise again.

If the Fed raises interest rates sharply and the economy enters a recession sooner, gold is still a safe bet. Recently, the Fed believes that inflation is reaching a peak.

Currently, gold is being supported at $1,850/ounce. If this level is broken, gold can fall to 1,800 USD/ounce. The markets will be heavily dependent on the data for the week to watch, which is US inflation figures from April.

According to a survey by Kitco, 53% of analysts believe that gold will increase in price. 35% have a view that gold will fall.

V. Minh

Vietnamese people buy the most gold in Southeast Asia, nearly ten times more than other countriesWhile other countries in the region are not very fond of gold, Vietnamese people still bought a lot of this precious metal in the first quarter of 2022.