USD reversed, gold immediately fell

Domestic gold price

At the end of the trading session on May 31, 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: 68.30 million VND/tael – 69.32 million VND/tael

Doji Hanoi: 68.30 million VND/tael – 69.20 million VND/tael

SJC HCMC: 68.30 million VND/tael – 69.30 million VND/tael

Doji Ho Chi Minh City: 68.40 million VND/tael – 69.20 million VND/tael

International gold price

On the night of May 31 (Vietnam time), the world spot gold price stood around the threshold of 1,845 USD/ounce. Gold for August delivery on the Comex New York exchange was at $1,846 per ounce.

World gold price on the night of May 31 was about 2.6% lower (50 USD/ounce) compared to early 2021. World gold converted to bank dollar price is 51.7 million dong/tael, excluding tax and fees, about 17.6 million VND/tael lower than the domestic gold price by the end of the afternoon session on May 31.

Gold price on the international market dropped right after the USD showed signs of inching slightly and the US Treasury bond yields increased again.

However, gold’s decline slowed down when the US stock market was under selling pressure in the first session of the week.

World stock markets are threatened by rising oil prices. Fuel commodity prices increased sharply when Russia and Europe were tense, while China was busy reopening its economy after containment in many places because of the epidemic.

Oil prices sometimes reach 120 USD/barrel.

Europe continues to experience high inflation. The euro area – Eurozone recorded inflation in May increased by 8.1% year-on-year, higher than the 7.4% rate in April.

Gold prices fell because US consumer confidence did not fall as deeply as expected. Economists expected the index to fall to 103.9 points, but in fact it only fell from 108.6 points in April to 106.4 points in May.

Gold price forecast

Gold is forecast to come under selling pressure as China begins to ease its Covid-19 zero policy. China’s economy is likely to come out of the recession and thereby have a positive impact on the global economy.

If the economy improves, it will positively affect the stock market. A stronger dollar also puts negative pressure on gold.

According to the plan, the US Federal Reserve (Fed) continues to say that it will raise interest rates in the next meeting in June and July. In a survey of Kitco News, up to 65% said that precious metals will increase this week, only 12% said otherwise.

V. Minh