Expectations increase in the new week

6 am this morning May 30 (Vietnam time), world gold price on the Kitco floor traded at 1,849 USD/ounce, down 12 USD/ounce compared to the early hours of the morning. However, the weakening USD and falling bond yields helped the world gold price go up in most of the trading sessions of the past week. At the end of the week, the market managed to hold steady around the psychologically important $1,850 an ounce, as the dollar fell from its highs at the start of the month for a second straight week of declines.

The USD index ended the week below 102 points and down 3% from a 20-year high. Meanwhile, bond yields have fallen to 2.74%, down more than 13% from recent highs above 3%. Red color on stock market also contribute to the revival of demand for safe-haven assets.

Domestic gold price

At the end of last week’s trading session, Saigon Jewelry Company listed the price of SJC gold at 68.55 million dong/tael (buying in) and 69.57 million dong/tael (sold out).

DOJI Group listed the gold price at 68.5 million dong/tael (buy in) and 69.45 million dong/tael (sold out).

Gold price forecast

The results of Kitco News’ gold market survey last week showed that, of the 17 participating Wall Street analysts, 11 (65%) expect gold prices to rise next week; 2 people (12%) forecast a drop in gold prices; 4 people (23%) gave a neutral opinion.

570 votes were cast in online Main Street polls. 317 people (56%) believe gold price will increase next week; 163 people (29%) forecast a drop in gold prices; The remaining 90 people (16%) gave neutral opinions.

“Gold is a safe haven and the market will see a major breakout if the price can reclaim $1,885,” said Ed Moya, an analyst at online exchange OANDA.

The USD may face a decline because the European Central Bank (ECB) has intended to raise interest rates, if so, in the near future, the Euro may dominate the USD.

Ed Moya added that gold should be supported when inflation pressure is heavy, China’s COVID-19 situation is still a big unknown, so US businesses continue to face obstacles.