Gold fell deeply to the bottom

Domestic gold price

At the end of the trading session on May 16, 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: 68.25 million VND/tael – 69.27 million VND/tael

Doji Hanoi: 68.20 million VND/tael – 68.90 million VND/tael

SJC HCMC: 68.25 million VND/tael – 69.25 million VND/tael

Doji Ho Chi Minh City: 68.20 million VND/tael – 68.90 million VND/tael

International gold price

On the night of May 16 (Vietnam time), the world spot gold price stood around $1,808 per ounce. Gold for June delivery on the Comex New York exchange was at $1,809 per ounce.

The world gold price on the night of May 16 was about 4.6% lower (US$870/ounce) compared to the beginning of 2021. World gold converted to bank dollars was priced at VND50.6 million/tael, excluding tax. and fees, about 18.3 million VND/tael lower than domestic gold price until late afternoon session 16/5.

Gold price in the international market continued to fall deeply and hit a 4-month low when the USD rose. Selling pressure also increased strongly on technical analysis signals and high USD yields.

Gold fell when investors lost money on many fronts and had to sell gold to cover their losses.

In the last week, the index stock US broad range S&P 500 experienced its worst weekly loss in 11 years. The index continues to be in a bear market trend, a trend that is established after it has fallen 20% since its peak. The Russia-Ukraine war and lockdowns in China as well as inflation fears have hit stock markets.

China’s industrial output index for April fell 2.9% year-on-year, much lower than forecast for a 1% increase.

Gold price forecast

Most of the forecasts of large institutions said that gold could fall further this week and drop below $ 1,800/ounce.

In fact, the demand to catch the gold bottom appeared with increased trading. Many people think that gold has been sold out over the level. However, the precious metal face does not have many favorable supporting factors at the moment.

Gold continues to be under pressure in the short term as the USD is in an uptrend and is at a 20-year high.

Inflation in the US is still high. This is the factor that forced the US Federal Reserve (Fed) to continue to sharply increase interest rates. The pressure on gold is still great. Some forecasts even say that gold will fall below 1,700 USD/ounce by the end of this year.

V. Minh