Unexpected 'turn around', gold plummets

Domestic gold price today

On the afternoon of May 25 , the price of SJC 9999 gold today remained unchanged compared to the morning.

The price of 9999 gold was updated by Saigon Jewelry Company Limited (SJC) at 3:39 p.m. and the price of 9999 gold was listed by Doji Jewelry Group at 3:40 p.m. as follows:

	Buy	Sell
SJC Hanoi	66,500,000 VND/tael	67,120,000 VND/tael
SJC HCMC	66,500,000 VND/tael	67,100,000 VND/tael
SJC Danang	66,500,000 VND/tael	67,120,000 VND/tael
Doji Hanoi	66,400,000 VND/tael	67,000,000 VND/tael
Doji HCMC	66,500,000 VND/tael	67,000,000 VND/tael

SJC and DOJI gold price list updated on the afternoon of May 25

Opening the market on May 25, the price of SJC 9999 gold today decreased by 50 thousand VND/tael in both buying and selling compared to the end of yesterday's trading session.

The price of 9999 gold was updated by Saigon Jewelry Company Limited (SJC) and Doji Jewelry Group at 8:30 am as follows:

At the end of the trading session on May 24, the domestic 9999 gold price was listed by SJC and Doji Gold and Gemstone Group in the following order of buying and selling:

SJC Hanoi: 66,500,000 VND/tael - 67,120,000 VND/tael
Doji Hanoi: 66,450,000 VND/tael - 67,050,000 VND/tael
SJC HCMC: 66,500,000 VND/tael - 67,100,000 VND/tael
Doji HCMC: 66,550,000 VND/tael - 67,050,000 VND/tael

The central exchange rate on May 25 announced by the State Bank is 23,696 VND/USD, an increase of 12 VND compared to yesterday. The USD price at commercial banks this afternoon (May 25) was traded around 23,270 VND/USD (buy) and 23,640 VND/USD (sell).

International gold price today

At 8:37 a.m. today (May 25, Vietnam time), the world spot gold price stood at around 1,957 USD/ounce, down 26 USD/ounce compared to last night. The price of gold futures for August delivery on the Comex New York floor was at 1,961 USD/ounce.

On the night of May 24 (Vietnam time), the world spot gold price dropped to 1,983 USD/ounce. Gold for June delivery on the Comex New York floor was at 1,985 USD/ounce.

The world gold price on the night of May 24 was about 8.7% higher (159 USD/ounce) than at the beginning of 2023. World gold converted to the bank USD price was 57.1 million VND/tael, including taxes and fees, about 10.0 million VND/tael lower than the domestic gold price as of the end of the afternoon session on May 24.

Gold prices rose as time ticked down to the time when the US government would run out of money in early June if negotiations to raise the debt ceiling failed.

A report shows that US President Joe Biden and Mr. McCarthy, Speaker of the House of Representatives, had a meeting but there was not much positive information about raising the public debt ceiling.

This week, US Treasury Secretary Janet Yellen reaffirmed that the US government will run out of money by June 1 if there is no new agreement to raise the debt ceiling.

In a rare move, investors are shunning short-term US Treasury bills (maturities of less than one year) over concerns that the US government will default on its debt.

Gold Price Forecast

The increase in demand for gold comes as some Federal Reserve officials remain hawkish. St. Louis Fed President James Bullard expects the central bank to raise interest rates two more times to curb inflation in 2023.

According to Mr. Bullard, the probability of a recession has been “overstated.” The risk of a US recession is not as high as Wall Street forecasts.

In the medium and long term, the USD is under downward pressure as the Fed inevitably has to reverse its monetary policy after more than a year of raising interest rates at a rare pace. The Fed has raised interest rates 10 times, a total of 475 basis points.

Once the Fed reverses its policy, the USD will fall rapidly and thereby have a positive impact on gold.

Source