The gold market received some good news earlier this week. China’s central bank resumed buying 5 tonnes in November after staying on the sidelines for six months. Analysts said the data underscored China’s growing importance in the gold market and could spur other central banks to buy gold by 2025.

At the end of last week, the world gold price quickly dropped sharply to 2,648 USD/ounce due to pressure from persistent inflation affecting expectations of monetary policy easing by the US Federal Reserve (Fed).

According to CME's FedWatch tool, the market is highly pricing in a 25 basis point rate cut after the Fed's final meeting of 2024 on December 17-18. Many factors hinder the long-term monetary policy easing cycle in 2025, affecting gold prices.

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World gold prices are expected to decrease in the next 10 days. Photo: HH

Analysts see a 25 basis point interest rate cut at the Fed's meeting this week in the next 10 days, which will help gold rise in the short term, then fall again.

Gold investors should prepare for weakness in the next 10 days as the Fed eases expectations of a rate cut, said Naeem Aslam, chief investment officer at Zaye Capital Markets.

Lukman Otunuga, chief market analyst at FXTM, said the precious metal remains pressured by rising Treasury yields ahead of the Fed's last policy meeting of 2024.

The key issue is the message and the policy signal going forward after that meeting. If the message is that the Fed will cut less aggressively, or less than that next year, that could limit the upside potential for gold.

Carley Garner, co-founder of brokerage firm DeCarley Trading, said gold prices were unlikely to remain stable above $2,700 an ounce heading into the new year.

On the positive side, Michele Schneider, chief strategist at Marketgauge, said that in the short term, gold will fluctuate around $2,600-2,800 an ounce. In the long term, she noted that in addition to the Fed's monetary policy, global interest rates continue to fall. At the same time, global debt continues to rise. These are bullish factors for gold.

In the domestic market, gold prices are being strongly affected by world gold prices. Last week, SJC gold rings and gold bars increased by millions of VND in one session, but then decreased sharply at the end of the week due to the impact of falling world gold prices.

In the next 10 days, domestic gold will continue to be affected by world gold prices. Domestic investors need to monitor world price fluctuations to make investment decisions.

Gold prices plummet due to US power, Russia's priority: How far has SJC and plain rings fallen? World gold prices have plummeted in recent sessions amid the changing world before Donald Trump returns to the White House. Russia's changing priorities and the strength of the US may continue to restrain the precious metal's rise.