Gold prices are forecast to continue to fall sharply, people should be cautious when buying gold for investment.

Next week, gold prices are forecast to continue to fall sharply. Investors should consider carefully when buying gold for investment because gold prices are still at a high level and are under great pressure to adjust.

At 11:00 a.m. on November 17, domestic gold bar prices were still listed by large businesses at 80-83.5 million VND/tael for buying and selling.

Compared to the closing time of the previous trading session (on November 9, gold bar prices were listed by businesses at 82-85.5 million VND/tael for buying and selling), the price of gold bars has decreased by about 2.5 million VND/tael.

However, compared to the peak of VND90 million/tael set 2 weeks ago, the price of gold bars has decreased by about VND6.5 million/tael. Thus, this is the 3rd consecutive week that the price of gold bars has decreased sharply.

For the third consecutive week, gold prices have fallen sharply. Photo: Minh Chien

Sharing the same downward trend, at 11am on November 17, businesses were also listing the price of gold rings at 79.8 - 82.3 million VND/tael for buying and selling. PNJ Company alone traded gold rings at 80.9 million VND/tael for buying and 82.6 million VND/tael for selling.

Compared to last weekend, the price of gold rings decreased by about 2.2 million VND/tael. In the past 3 weeks, the price of gold rings also dropped sharply from the 90 million VND/tael range, losing about 7 million VND per tael.

Similarly, in the world gold market, the world gold price closed the trading week at 2,562 USD/ounce. The December 2024 gold futures price traded at 2,570 USD/ounce.

From a peak of $2,800 an ounce two weeks ago, the world gold price has fallen to $2,500 an ounce. This week alone, the world gold price fell nearly 5%, marking the sharpest weekly decline in nearly 3 years.

Pointing out the reason why gold prices have “evaporated” in the past 3 weeks, world economic experts said that the main reason is the strengthening of the USD and expectations about the monetary policy of the US Federal Reserve (Fed). When the USD increases in value, gold - which is priced in USD - becomes more expensive for international investors, reducing the demand for investment and storage.

In addition, technical signals also show a correction. The RSI (Relative Strength Index) has fallen sharply from above 80, signaling a reversal in the previous uptrend.

Making forecasts for gold prices next week and in the near future, analysts predict that world gold prices could reach $2,400/ounce.

Also predicting that gold prices will not stop falling, in Kitco's weekly survey, last week, 12 analysts participated in the survey, of which only 25% said that gold prices will increase, while 50% said that gold prices will decrease in the coming days and the remaining 25% predicted that gold prices will remain stable.

In an online survey on Main Street, 181 investors responded, of which 43% said gold prices would continue to rise, 39% predicted gold prices would fall and the remaining 18% predicted gold prices would remain flat.

In the context of the world gold price still not stopping the decline, analysts recommend investors to pay attention to important statements of Fed officials, especially the Fed Chairman because signals of changes in monetary policy can greatly affect the gold price. In addition, investors also need to pay attention to economic data about the US economy to be announced such as: Housing sales, Philadelphia production index...

People line up to buy gold. Photo taken on the afternoon of November 15 at Bao Tin Minh Chau Gold Store on November 15.

In the domestic market, analysts also said that domestic gold prices are directly affected by world gold prices, so investors and people should be cautious in gold trading.

According to the reporter of Cong Thuong Newspaper, on the afternoon of November 15, after the gold price decreased, many people agreed to wait in line for 45-60 minutes to buy gold. However, many economic experts warn that although the gold price is decreasing, the price of gold is still at a high level, so it is necessary to consider carefully when investing.

For gold rings, if there is a need to store gold in the short term or to preserve the value of assets, gold rings can be a suitable choice for investors. However, if the goal is to invest profitably, caution is needed because the current price is at a high level and is under great pressure to adjust.

"Instead of pouring all their capital into gold, investors should consider diversifying their investment portfolio to minimize risks and bring higher and safer profits," experts recommend.

Source: https://congthuong.vn/du-bao-gia-vang-co-the-tiep-da-giam-manh-nguoi-dan-than-trong-khi-mua-vang-dau-tu-359260.html