Inflation cools down from 40-year peak, gold fluctuates sharply

Domestic gold price

Open the market on 12/5, SJC’s gold price of 9999 in Hanoi today increased by 150 thousand dong in the buying afternoon and 50 thousand dong in the selling afternoon compared to the end of yesterday’s session. Specifically, at 9.16 am on May 12, 9999 gold was traded by Doji Jewelry Group and SJC as follows:

Gold price list SJC and DOJI updated at 9.16 am on 12/5

At the end of the trading session on 11/5, the domestic gold price of 9999 was listed by SJC and Doji Jewelry Group in the order of buying and selling as follows:

SJC Hanoi: 69.50 million VND/tael – 70.22 million VND/tael

Doji Hanoi: 69.40 million VND/tael – 70.10 million VND/tael

SJC HCMC: 69.50 million VND/tael – 70.20 million VND/tael

Doji Ho Chi Minh City: 69.40 million VND/tael – 70.10 million VND/tael

International gold price

In the world gold market, Spot gold price in the US increased by 18 USD/ounce to 1,858 USD/ounce. Gold futures for delivery in June 2022 on the Comex New York floor increased by $14.8, to $1,856.8 per ounce.

On the night of May 11 (Vietnam time), the world spot gold price stood around the threshold of 1,840 USD/ounce. Gold for June delivery on the Comex New York exchange was at $1,842 an ounce.

The world gold price on the night of 11/5 is about 2.9% lower (55 USD/ounce) compared to the beginning of 2021. World gold converted to bank dollar price is 51.5 million dong/tael, excluding tax. and fees, about 18.6 million VND/tael lower than the domestic gold price as of late afternoon session 11/5.

Gold price in the international market continuously fell and then recovered in the context of the USD skyrocketing. The US announced that inflation cooled to 8.3% after reaching a 40-year peak.

Gold fell sharply because speculators continuously sold when they were expecting the US Federal Reserve (Fed) to continue raising interest rates by 50 percentage points in June. Hundreds of tons of gold were sold through the futures market for the past 3 weeks.

Gold fell as the dollar spiked to a 20-year high. The DXY index, which measures the volatility of the greenback against a basket of six major currencies, rose above the 104-point threshold.

Gold fell because the commodity closely related to gold, oil, fell rapidly. Oil prices Crude futures on Nymex fell below the threshold of $100/barrel.

The US released data showing that the consumer price index in April was at 8.3%, down from 8.5% in the previous month. Despite the decline, inflation remains at a very high level over the past 40 years. That shows, the Fed will continue with its plan to accelerate interest rate hikes as well as withdraw money.

Gold price forecast

History shows that gold benefits from geopolitical uncertainties around the world as well as high inflation. Gold is always a safe storm shelter.

However, in the short term, gold is under pressure from the Fed’s interest rate hike. An increase in US interest rates increases the opportunity cost of holding non-yielding assets like gold.

A strong dollar and high US bond yields put downward pressure on gold.

In the long term, many forecasts say that gold will soon rise again. Representative Barrick Gold shared on Kitco that gold will return to the threshold of $ 2,000 / ounce by the end of this year.

V. Minh

Gold price fell sharply today, losing the milestone of VND 70 million/taelDomestic gold price this morning (May 11) fell sharply, losing the mark of 70 million dong/tael. The world gold price dropped to the lowest price since February.