ANTD.VN - Gold prices have adjusted back last week after 4 consecutive weeks of increase. With US inflation data being hotter than expected, experts believe that the downward trend will continue next week.
Last week, gold prices maintained their upward momentum in the early sessions of the week but adjusted in the final sessions of the week. At the end of the week, the spot gold price on the world market was around 2,157 USD/ounce, down about 22 USD/ounce for the whole week. Thus, this was the first week of decline for the precious metal after 4 consecutive weeks of increase.
Domestic gold prices also adjusted accordingly. At the end of the week, SJC gold prices at Saigon Jewelry Company (SJC) were listed at VND79.20 - 81.70 million/tael, down VND300,000/tael in both directions.
Some other businesses, the closing price of gold bars for the week is as follows: DOJI 79.40 - 81.40 million VND/tael; Bao Tin Minh Chau 79.60 - 81.45 million VND/tael; Phu Quy 79.60 - 81.50 million VND/tael; PNJ 79.70 - 81.70 million VND/tael.
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Gold prices under pressure from higher-than-expected US inflation data |
For gold rings, the decrease during the week at businesses was quite large. At SJC Company, 9999 gold rings decreased by about 800 thousand VND/tael, listed at the end of the week at 67.60 - 68.80 million VND/tael.
Round rings at other businesses have also decreased more deeply, with a decrease of around 1.6 million VND/tael. Accordingly, Bao Tin Minh Chau listed the price at 68.13 - 69.43 million VND/tael; DOJI Hung Thinh Vuong 9999 rings at 68.10 - 69.40 million VND/tael...
Last week, gold prices were under pressure as two important inflation data, the US consumer price index (CPI) and producer price index (PPI), both rose higher than experts expected.
This has kept inflation in the world's largest economy at a relatively high level compared to the 2% target set by the US Federal Reserve (Fed). Accordingly, it has disappointed those who wanted the Fed to cut interest rates soon.
With this data, according to the Fed Watch tool, the chance of a rate cut in June has now dropped to 59%, compared to 72% before the CPI data was released.
The Dollar Index posted its biggest weekly gain since mid-January, making gold more expensive for overseas buyers.
Inflation data also dampened some of the bullish sentiment among analysts. The latest weekly Kitco News survey found that nearly three-quarters of 11 Wall Street analysts surveyed expect gold prices to fall or trade sideways next week. Of those, five, or 46%, see the precious metal falling next week. Three, or 27%, expect gold to rise, while a similar number see it trading in a narrow range.
Meanwhile, in a 194-member Main Street online survey, bullish sentiment remains dominant, with 56% expecting gold to rise next week; 29% predicting prices will fall and the remaining 15% holding a neutral view on gold’s short-term outlook.
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