Gold price suddenly turns and plummets

07/28/2023 10:14 Nhat Linh Print article

ANTD.VN - Gold prices suddenly plummeted when newly released US economic data supported hawkish arguments about monetary policy, causing the USD to increase in value.

After a good increase in yesterday's session, this morning, domestic gold prices all turned down, losing all previous increases. SJC gold was adjusted down by 150 thousand VND per tael compared to the closing price of the previous session by Saigon Jewelry Company (SJC), listed early this morning at 66.60 - 67.20 million VND/tael - equivalent to yesterday's opening price.

Meanwhile, the price of gold rings of enterprises decreased more sharply with a decrease of about 300 thousand VND per tael. Accordingly, PNJ gold rings are listed at 56.00 - 57.10 million VND/tael; SJC 99.99 rings are 55.95 - 56.95 million VND/tael; Bao Tin Minh Chau round rings are 56.13 - 56.98 million VND/tael...

In the world , the decrease in gold prices in the trading session on July 27 (last night, Vietnam time) was very large. In the US market, spot gold lost nearly 25 USD per ounce, down to only 1,946.8 USD/ounce at the closing session.

Gold prices fell sharply as positive US economic data was released

Just in the previous session, gold holders were confident as the Fed's neutral stance reinforced the possibility that the agency would stop raising interest rates this year.

However, today, gold prices turned sharply down and hit a two-week low, erasing the gains of dozens of previous sessions, after optimistic US economic data released on Thursday morning, far from market expectations.

Accordingly, the first estimate of US gross domestic product (GDP) in the second quarter reached a 2.4% increase compared to the same period last year, beating market expectations of a previous increase of 2.0%.

Meanwhile, US durable goods orders were reported to have risen 4.7% in June, compared to expectations for a 1.5% increase. In addition, US weekly jobless claims were lower than expected.

Stronger-than-expected economic data bolstered monetary policy hawks, suggesting that at least one more interest rate hike may be needed to cool the U.S. economy further and keep inflation in check. The data boosted the dollar index and pushed up U.S. Treasury yields — both headwinds for the gold market.

In other news, the European Central Bank (ECB) raised interest rates slightly at its monetary policy meeting on Thursday, as expected. Not only that, the ECB's shift to a more neutral, data-dependent stance weighed on the euro against the dollar, which also helped push gold to its session low.

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