Gold price falls sharply, lowest in 5 months

Domestic gold price

At the end of the trading session on August 19, the price of 9999 gold bars at SJC Ho Chi Minh City was 67 million VND/tael (buy) and 67.7 million VND/tael (sell). SJC Hanoi listed at 67 million VND/tael (buy) and 67.72 million VND/tael (sell).

Doji Hanoi listed at 66.95 million VND/tael (buy) and 67.75 million VND/tael (sell). Doji Ho Chi Minh City bought SJC gold at 67.05 million VND/tael and sold at 67.65 million VND/tael.

International gold price

On the world market, the spot gold price on Kitco on August 19 (at 2:00 p.m., Vietnam time) was trading at 1,889 USD/ounce.

Domestic gold prices skyrocketed.

At the current price, the world gold price converted to VND (including tax and processing fee) is about 12.35 million VND/tael different from the domestic SJC gold price.

Growing concerns that the Federal Reserve may keep interest rates higher than initially expected in an effort to control inflation weighed on the gold market, with prices ending the week at a five-month low.

Meanwhile, US bond yields rose, hitting a 15-year high on Thursday, making gold less attractive.

China’s July economic data fell short of expectations, with Evergrande filing for bankruptcy protection in the U.S. further shaking investor confidence. The deepening crisis of confidence is adding to the pressure on the world’s second-largest economy.

According to The New York Times, China's weakening economy means that demand for goods has shrunk significantly, including gold. Over the past 10 years, China has generated more than 40% of global economic growth, compared to 22% for the US and 9% for the 20 countries in the eurozone, according to analysis by BCA Research (Canada).

Gold Price Forecast

Despite optimism that gold prices could regain their luster later this year, analysts warn the precious metal is likely to fall further next week.

The world's largest gold exchange-traded fund, SPDR Gold Trust, fell 6.93 tonnes in the session on August 17. The fund currently holds 887.50 tonnes, the lowest holding since January 2020.

Source: https://vietnamnet.vn/gia-vang-hom-nay-20-8-vang-rot-gia-manh-thap-nhat-5-thang-2179411.html