USD weakens, gold recovers

6 am this morning May 27 (Vietnam time), world gold price on the Kitco floor traded at 1,851 USD/ounce, down 2 USD/ounce compared to the early hours of the morning.

Gold price in the international market recovered after falling sharply earlier. The weakening USD is the main reason for the slight increase in gold price.

However, gold is still unable to break through due to the stock market in the world, including the US, stabilized after falling to the lowest level in 12 months.

Domestic gold price

At the end of the trading session on May 26, Saigon Jewelry Company listed the price of SJC gold at 68.3 million VND/tael (buying in) and 69.32 million VND/tael (sold out).

DOJI Group listed the gold price at 68.2 million dong/tael (buy in) and 69.1 million dong/tael (sold out).

Gold price forecast

Gold is considered a safe investment asset in times of crisis and a hedge against inflation. However, the rate hike has put pressure on non-yielding assets like gold.

In the previous session, the US Federal Reserve’s Open Market Committee (FOMC) expressed a tough stance on the stance of tightening monetary policy.

The US Federal Reserve (Fed) has now confirmed the risk of rising inflation and its growing threat to the economy. Most likely, the agency will raise interest rates by 50 percentage points each time in its June and July meeting.

At that time, the USD is expected to increase in price, thereby putting pressure on gold.