Continue to decrease despite high inflation

Around 6 o’clock on May 11, the world spot gold price dropped to $1,838 per ounce – the lowest price since February 2022.

So, gold price today down another 15 USD/ounce after dropping by 30 USD/ounce in the previous session. Gold price for delivery in June 2022 also fell by 13 USD/ounce, last trading at 1,845 USD/ounce.

The market Another important note recorded crude oil price from $104/barrel to $99/barrel as fuel demand declined due to China’s restrictions on operations due to Covid-19 and the risk of recession. economy in this country is increasing. Accordingly, the gold price is under downward pressure because falling crude oil prices often lead to the weakening of precious metal prices.

On the other hand, last night US President Joe Biden told the press that high inflation is a challenge for the US economy and that cooling inflation is a top priority for the government.

“The plan to raise taxes on corporations and billionaires will help reduce inflation. According to the plan, we are on track to cut the budget deficit by $1.5 trillion this year. Deficit reduction is one of the measures to reduce inflationary pressures,” said President Joe Biden.

With pine believe In this case, perhaps investors speculate that the “greenback” will appreciate in the future. Accordingly, they strongly sold US bonds to accumulate capital in USD, helping this currency continue to increase in price after having risen strongly in the previous session.

Under the pressure of the USD and the drop of crude oil prices, speculators recognized that the gold market had no chance to prosper. Therefore, when the world gold price traded in the area of ​​1,860 USD/ounce, many people sold to recover capital. Instantly, gold price today of the world dropped sharply and by 6 o’clock on May 11 it was down to 1,838 USD/oucne.

In Vietnam, the gold price today (May 11) will be announced by businesses at 8:30 a.m. Accordingly, the SJC gold price may fluctuate according to the domestic purchasing power and the trend of the world gold price.

Previously, because the world gold price from 9 a.m. to 5 p.m. on May 10 increased by 10 USD/ounce, during this period, the price of SJC gold increased by 200,000 dong/tael, closing at 70.3 million dong/tael at the end of the day. .