After two days of holding steady at the 100 million VND/tael mark, the domestic gold price has fallen below this threshold - Photo: THANH HIEP
Will gold prices fall further?
At 11:30 a.m., the world gold price was at 3,029 USD/ounce, down about 26 USD/ounce compared to yesterday's peak, equivalent to a decrease of 806,000 VND/tael.
Domestic gold prices also plummeted.
This morning, SJC Company listed the price of SJC gold bars at 99.5 million VND/tael, down 900,000 VND/tael from yesterday's peak. The buying price is 97.5 million VND/tael.
The price of gold rings is 100,000 VND/tael lower than the price of gold bars in both buying and selling directions.
At PNJ Company, today the selling price of gold rings is 99.4 million VND/tael, the buying price is 97.9 million VND/tael, down 400,000 VND/tael in the selling price and 200,000 VND/tael compared to the end of yesterday.
At Bao Tin Minh Chau Company, the price of gold rings also dropped from VND100.3 million/tael to VND99.9 million/tael. The buying price also decreased by VND750,000/tael to VND97.8 million/tael.
At the price of 3,029 USD/ounce, converted according to the exchange rate listed at the bank, the world gold price is equivalent to 94 million VND/tael.
Compared to the converted world gold price, the domestic gold price is 5.5 million VND/tael higher. This difference is more than 4 times higher than about 10 days ago.
Profit-taking pressure pushes gold prices down
World gold prices have continuously set records recently, however, after reaching the threshold of 3,055 USD/ounce, world gold prices have turned down due to profit-taking pressure.
However, according to analysis, this is likely just a correction of gold prices after they have increased too much. Gold prices still have room to increase again due to support from interest rates and geopolitical tensions.
Accordingly, at the monetary policy meeting ending on Wednesday this week, the US Federal Reserve (Fed) signaled that it would cut interest rates twice this year.
Fed Chairman Jerome Powell expressed concern that tariffs could dampen consumer spending, leading to downward pressure on the economy. The Fed also raised its inflation forecast and lowered its growth forecast for the world's largest economy through 2025.
The possibility of the US economy falling into a state of stagflation is considered beneficial for gold prices, because in such an environment, gold plays both the role of a "safe haven" when economic growth declines and the role of a leading anti-inflation investment channel.
Rising tensions in the Middle East are one reason for investors to hold gold at this time.
Please follow the domestic gold price developments here.
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