Gold price today May 18: Gold plummets

Domestic gold price

At the end of the trading session on May 17, the domestic 9999 gold price was listed by SJC and Doji Gold and Gemstone Group in the following order of buying and selling:

SJC Hanoi : 66,500,000 VND/tael - 67,120,000 VND/tael
Doji Hanoi: 66,450,000 VND/tael - 67,050,000 VND/tael
SJC HCMC: 66,500,000 VND/tael - 67,100,000 VND/tael
Doji HCMC: 66,550,000 VND/tael - 67,050,000 VND/tael

International gold price

On the night of May 17 (Vietnam time), the world spot gold price dropped to 1,979 USD/ounce. Gold for June delivery on the Comex New York floor was at 1,982 USD/ounce.

The world gold price on the night of May 17 was about 8.7% higher (158 USD/ounce) than at the beginning of 2023. World gold converted to the bank USD price was 57.0 million VND/tael, including taxes and fees, about 10.1 million VND/tael lower than the domestic gold price as of the end of the afternoon session on May 17.

Gold prices in the international market plummeted due to the strong increase of the USD. Investors were disappointed about the possibility that the US would soon reduce interest rates.

Gold fell sharply amid increased profit-taking pressure after the precious metal climbed to near its historic peak of $2,070 an ounce. The sharp decline triggered more selling.

Gold fell shortly after the US dollar rose rapidly again.

The DXY index - which measures the greenback's performance against a basket of six major currencies - rose 0.5% to 103.1. Earlier, the index had been at 101.

Investors have recently found themselves betting too early on the possibility that the US Federal Reserve (Fed) will quickly reverse its monetary policy and cut interest rates after 10 consecutive increases.

However, the Fed poured cold water on short selling of the USD, thereby boosting demand to buy back the greenback to avoid losses.

The rapid rise of the US dollar has put downward pressure on gold prices.

Gold Price Forecast

Currently, investors are waiting for the final results of the negotiations on the US debt ceiling.

Earlier, US Treasury Secretary Janet Yellen said that a US default would create an economic and financial disaster. A default could cause panic in the stock market as stocks are sold off. Gold could also be sold to cover losses in other investment channels.

Although gold prices have fallen, they are still considered to be in a long-term uptrend. Gold is also a safe haven asset.

Many organizations predict that gold prices will continue to increase in the long term. ANZ Bank forecasts that gold will reach $2,100 an ounce by the end of this year and $2,200 in the second half of next year.

Source: https://vietnamnet.vn/gia-vang-hom-nay-18-5-vang-lao-doc-2144385.html