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Gold price reverses downwards

Domestic gold price dropped in this morning session. (Photo: Investment Newspaper)

At 9:55 a.m., Saigon Jewelry Company listed gold price SJC in Hanoi market was at 69 – 69.92 million dong/tael (buying in – selling out), down 50,000 dong/tael in both buying and selling direction compared to the closing session yesterday (May 24).

At DOJI Jewelry Group Joint Stock Company, the company adjusted the price of SJC gold by 50,000 VND/tael in the purchasing afternoon and kept the selling price unchanged. Currently, the gold price is trading at 69 – 69.8 million VND/tael (buy in – sell out).

At Bao Tin Minh Chau Co., Ltd., the price of SJC gold bar traded at 69.11 million VND/tael bought, 69.84 million VND/tael sold, down 100,000 VND/tael and 50,000 VND/tael, respectively. afternoon compared to the end of the session yesterday.

World gold price

On the international market, at 9am this morning, the spot gold price on Kitco stood at 1,850 USD/ounce, equivalent to 51.77 million VND/tael. Converted at the free USD exchange rate without taxes, world gold is 18.15 million VND/tael cheaper than domestic.

Gold price reverses downward - Photo 1.

Gold has been sold off continuously for the past 4 weeks. (Photo: Bloomberg)

Gold price increased when the USD-Index fell to 102.11 points, the lowest level in the past 2 weeks. The greenback continuously fell when the expectation that the US Federal Reserve (FED) would not be more aggressive in raising interest rates although worries about inflation remained.

Previously, Fed Chairman Jerome Powell denied that the agency raised interest rates by 0.75% in June and revealed the expected number for the next adjustment period is 0.5%.

The Fed’s recent statements show that it believes that inflation has peaked when the CPI in April fell to 8.3%, 0.2% lower than in March. However, tightening. The Fed’s tight monetary policy led to gold selling off for 4 consecutive weeks.

Expert Gary Wagner from Kitco said: “Gold has sold off continuously in the past 4 weeks because of many speculations that the Fed will raise interest rates higher than forecast.”

“However, the precious metals market rebounded quickly this week as investors looked at the fact that inflation hasn’t peaked yet and could move higher. From there, the risk-on market sentiment. will last and bring in safe-haven assets like gold,” said Gary Wagner.

Analysts also believe that the economic recession in the US is approaching, especially in the context that the war in Ukraine has not cooled down and the methods of fighting the COVID-19 epidemic in China have disrupted the global supply chain. .

According to hedge fund Bridgewater Associates, the Fed both wants to control inflation and does not want to cause a recession, but with the current situation, this goal is difficult to achieve. From the above concerns, gold has become a safe haven channel chosen by many people.

In the opposite direction, some experts believe that the USD will return to rise again according to the Fed’s interest rate hike schedule. Gold is likely to have peaked and will continue to be in a bear market until 2024. Gold may even drop to $1,000 an ounce.

Gold price increased slightly Gold price increased slightly

VTV.vn – In the early morning session of the week (May 23), the domestic gold price was adjusted slightly by trading enterprises.

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