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Gold price fell at the beginning of the week

Gold price traded above 70 million VND/tael. (Photo: Dan Tri)

At 9:45 a.m., Saigon Jewelry Company listed gold price SJC in Hanoi market was at 69.65 – 70.37 million dong/tael (buy in – sell out), down by 100,000 dong/tael in both buying and selling direction compared to the closing session last week.

At DOJI Jewelry Group Joint Stock Company, the company adjusted the price of SJC gold by 150,000 VND/tael on the selling side and kept the buying price unchanged compared to the end of last week’s trading session. Currently, the gold price is trading at 69.6-70.25 million VND/tael (buy in – sell out).

At Bao Tin Minh Chau Co., Ltd., the listed price of SJC gold traded at 69.66 – 70.34 million VND/tael (buy in – sell out), down 50,000 VND/tael in the buying afternoon. and sold out compared to the closing session last week.

World gold price

In the world, at 6:30 am this morning (May 10), the spot gold price on Kitco stood at $1,880/ounce, equivalent to VND52.09 million/tael, down $2.70. Converted at the free USD exchange rate without taxes, world gold is cheaper than domestic by 18.38 million dong/tael.

Gold price fell at the beginning of the week - Photo 1.

Many analysts and investors still expect an uptrend in gold prices this week. (Photo: Bloomberg)

The world gold market is still heavily affected by the interest rate hike of the US Federal Reserve (FED). With the reason to prevent the rise of inflation, the FED raised interest rates by 0.5% and is expected to maintain this figure in the June adjustment period. A 0.5% increase in interest rates causes the federal funds rate to increase. to about 0.75 – 1%.

Experts fear that the Fed’s massive increase in interest rates could cause borrowing costs to increase and the economy to fall into recession. Rejecting this view, Fed Chairman Jerome Powell said that the world’s No. 1 economy would not stop growing and be able to withstand higher interest rates.

Robert Minter, director of investment strategy in ETFs of ABRDN, a global investment company based in the United Kingdom, said that in the coming time, the demand for investment in gold will increase, when interest rates increase and high inflation.

In Vietnam, Mr. Andrew Naylor, Managing Director for Asia-Pacific (excluding China) of the World Gold Council, said: “Inflation is increasing and the dong weakening in Vietnam. The South has increased its attractiveness for gold as shown by its high domestic premiums Local festivals including Lunar New Year in February, Valentine’s Day and God of Wealth Day have supported demand. growth compared to last year, along with the recovery of business activity to pre-COVID-19 levels.

Previously, according to statistics on the situation of the gold market in Vietnam and some countries in the region, the World Gold Council (World Gold Council), consumer demand for gold increased from 18.6 tons in the first quarter of this year. April 2021 to 19.6 tons in the first quarter of 2022, up 6% over the same period in 2021.

Gold price forecast

According to the survey results of Kitco News, many analysts and individual investors still expect an uptrend in gold prices this week.

The results of the Wall Street survey show that 53% predict the precious metal will increase; 35% have the opposite view and the remaining 2 analysts think that gold prices are flat.

Meanwhile, according to the Main Street online poll, 61% think the price of gold will increase next week, 23% say that gold is down and 16% think that gold will move sideways.

According to Dow Jones Market Data, this is the longest period of decline in gold prices since December 3, 2021.

Adrian Day’s chairman of Asset Management Adrian Day said that he also sees monetary policy will push gold prices higher in the near future. Increased volatility in equity markets also supports gold’s bullish outlook this week.

Gold price may go up Gold price may go up – When interest rates rise and inflation is high, many market analysts predict that the price of gold will rise.

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