Kinh tế

Gold price next week up or down?

At this point, many factors are considered to prevent the increase of gold price; in which, the gold price will be under great pressure from the US Federal Reserve’s commitment to raise interest rates at a faster pace to curb inflation.

At the Hanoi market, closing the last week of trading on May 14, the price of SJC gold was listed by Saigon Jewelry Company Limited at 68.55 – 69.57 million VND/tael (buy in – sell). out), down 250,000 dong/tael in both buying and selling direction compared to yesterday’s closing.

Previously, the domestic gold price continuously followed the world gold price from the opening of the first trading day of the week on May 9, with many alternating sessions of ups and downs. For the whole week, the domestic gold price was adjusted down by 850,000 VND/tael.

Along with that, the world gold price fell by more than 1% on May 13 and extended the chain of decline to the 4th week in a row, when the strong USD and the prospect of the US continuing to raise interest rates in the near future reduced demand. demand for this precious metal.

Accordingly, the price of spot gold fell 0.7 percent to $1,808.89 per ounce at 0:54 am on May 14, Vietnam time after hitting the lowest level since February 4 at $1,798.86. /ounce on the same session. The price of US gold for delivery in June 2022 also lost 0.9% to 1,808.20 USD/ounce.

With a loss of nearly 1% this session, the world gold price fell 3.9%, marking the worst weekly decline since June 18, 2021.

One factor weighing on gold’s price was the fact that the dollar index, considered a “health” barometer of the greenback against other major currencies, rose for a sixth straight week and hovered near a high. in 20 years.

Gold price next week up or down?  - Photo 1.

The prospect of the US continuing to raise interest rates in the near future has reduced demand for gold

Additionally, Kitco Gold Senior Analyst Jim Wycoff said the global equity market rally over the weekend was also a negative factor for the safe-haven metal.

According to David Meger, director of metals trading at High Ridge Futures Financial Services, gold prices will remain under great pressure from the Fed’s commitment to raise interest rates at a faster pace to curb inflation.

Fed Chairman Jerome Powell on Thursday said the “war” to control inflation would bring “some pain” to the economy, mainly because of the impact of higher interest rates. Mr. Meger said that in the near future, the market will closely monitor inflation data to determine the direction of the Fed.

In a latest weekly note, Peter Cardillo, Chief Economist at Spartan Capital Securities, wrote that gold prices continue to fall to the mid-range $1,800 an ounce range. This shows that there is still hope for a quick and strong recovery of this precious metal.

Cardillo also said that gold’s short-term price target is $1,850 – $1,905 an ounce, citing supportive factors including hyperinflation and geopolitical uncertainty.

Even so, senior market analyst Alex Kuptsikevich at FxPro Trading Brokers noted that gold prices on Thursday fell below the 200-day moving average, which has been a downside for the metal. this quarter. The current price decline in the gold market requires experts to closely monitor the next developments.

However, gold still has room for a bullish reversal from current levels. If that scenario happens, it would signal a new “wave” of long-term growth. In this case, the expert of FxPro forecast that the potential price target of gold could be around $2,500/ounce.

* Invite readers to watch programs broadcast by Vietnam Television on TV Online and VTVGo!

You are reading the article Gold price next week up or down?
at – Source: – Read the original article here

Back to top button