Gold price continuously decreased, down to 120 million VND/tael

World gold price falls below 3,200 USD/ounce

At the end of the trading session on May 14, the price of SJC gold bars was listed by large enterprises at 118-120 million VND/tael (buy - sell), down 500,000 VND each way. The difference between the two buying and selling directions remained at 2 million VND/tael.

The price of plain gold rings is listed at 112.5-115 million VND/tael (buy - sell), also down 500,000 VND in both buying and selling. The difference between the buying and selling prices is 2.5 million VND/tael.

On the international market, the gold price on May 15 was around 3,186 USD/ounce, down 61 USD compared to the previous one. Converted at the exchange rate excluding taxes and fees, the world gold price is equivalent to 100.4 million VND/tael. The difference between domestic and world prices is about 19 million VND/tael, depending on the time.

Domestic and world gold prices simultaneously decreased (Photo: Hai Long).

World gold prices plummeted amid cooling geopolitical tensions. The war situation in the Middle East and Russia-Ukraine is being intensified by negotiations between the parties to quickly end the conflict.

Previously, the world gold price had increased continuously for nearly 3 months, from 2,700 USD/ounce to nearly 3,500 USD/ounce due to expectations that the US's imposition of tariffs on other countries would cause trade tensions and increase inflation. The fact that countries are negotiating to reduce tariffs with the US has caused the gold price to lose its supporting factor.

The process of interest rate cuts by major central banks around the world is almost complete. Currently, the G7 bloc (except the US) has almost run out of room to continue cutting interest rates, so the gold price has also lost its supporting factor.

The decision by the US Federal Reserve (Fed) to cut interest rates in the coming time is an important factor influencing the outlook for gold prices from now until the end of the year. However, this factor has also been reflected in gold prices for more than a month. Not to mention, the Fed previously signaled that it could maintain current interest rates for a longer period if inflation does not cool down as expected. High interest rates make gold, which is a non-yielding asset, less attractive.

Financial institutions, ETFs and investors are increasingly taking profits in gold to start new investments in this metal at a more attractive price range. Therefore, the possibility of gold prices falling sharply in the near future.

Citigroup believes that gold prices will stay at $2,250-2,300/ounce in the short term if the Fed shows no signs of easing policy. UBS forecasts gold prices to remain around $2,300-2,350/ounce in the second quarter, emphasizing that corrections are buying opportunities if geopolitical risks return.

The World Gold Council (WGC) believes that gold investment demand in Asia, especially China and India, will continue to play a medium-term supporting role for the market.

Central USD exchange rate remains at peak level

At the end of May 14, the State Bank announced the central USD exchange rate at 24,973 VND/USD, unchanged from yesterday's listing and at the highest level ever. With a 5% margin, the USD exchange rate that commercial banks are allowed to trade is 23,724-26,222 VND/USD.

Major banks listed the USD exchange rate at 25,750-26,140 VND (buy - sell), unchanged from before. Joint stock banks listed the exchange rate at 25,760-26,150 VND (buy - sell).

In the "black market", the USD is traded at 26,380-26,500 VND (buy - sell), unchanged from before.

Source: https://dantri.com.vn/kinh-doanh/gia-vang-giam-lien-tuc-xuong-120-trieu-dongluong-20250515003651473.htm