The decline continues, under a lot of pressure

Updated gold price closing session 9/28. Illustration photo: Phan Anh

Domestic gold price

Source: Dragon Viet Online Service JSC VDOS

Domestic gold price developments

Source: Rong Viet Online Service JSC VDOS

World gold price developments

Source: Kitco

World gold prices fell amid a rising USD. At 6:30 p.m., the US Dollar Index, which measures the greenback's fluctuations against six major currencies, stood at 106.15 points (up 0.22%).

The US dollar is not necessarily rising because the US economy is improving, but because US interest rates are very high. The US prime interest rate (federal funds rate) is at a 22-year high of 5.25%-5.5%.

Meanwhile, interest rates in many other countries are lower. The overnight interest rate in the interbank market in Vietnam is at 0.17%. The large interest rate differential has led to the phenomenon of carry trade, thereby causing the demand for USD to skyrocket.

This also means that selling pressure on other currencies, including the Japanese Yen, Swiss Franc and even gold, has increased sharply. In addition, capital outflows from emerging markets (EM) have also pushed the USD up.

Gold also fell as its closely related commodity, oil, also fell sharply. Demand for gasoline is expected to be restrained as major central banks keep interest rates high for a long time.

Everett Millman, a precious metals expert at Gainesville Coins, an online gold dealer, said the Federal Reserve and other central banks’ stance on tighter monetary policy for longer has been holding back gold’s growth. He predicted that gold will trade in the range of $1,910-$1,950 an ounce by the end of the year.

Source: https://laodong.vn/tien-te-dau-tu/cap-nhat-gia-vang-chot-phien-289-da-giam-noi-dai-chiu-nhieu-ap-luc-1247612.ldo