Gold prices today, May 2nd: Reversed downward trend.

(NLĐO) – After a sharp increase, world gold prices reversed course and fell as the market worried that major central banks would tighten monetary policy.

Gold prices cooled down today.

Early on May 2nd (Vietnam time), the price of gold on the international market closed the weekend at $4,615 per ounce, down $46 from the peak of $4,661 per ounce reached the previous night.

Although many experts believe central banks are not in a hurry to raise interest rates immediately, the tightening of monetary policy is still enough to cause investors to sell off gold – an asset often considered a "safe haven".

Last week, although the US Federal Reserve (FED) decided to keep interest rates unchanged, the market still assessed the likelihood of a rate cut this year as almost non-existent.

Lukman Otunuga, a market analyst at FXTM, believes gold prices may continue to face pressure next week. "There are no signs that the conflict with Iran will end anytime soon. Despite a ceasefire agreement, the Strait of Hormuz remains closed to shipping, putting gold at a disadvantage as oil prices remain high, impacting inflation," Otunuga predicted.

Other analysts argue that major central banks cannot act decisively until they determine whether inflation is temporary or long-lasting.

This will keep gold prices stuck in a narrow range, due to the combined impact of monetary policy and geopolitical -energy volatility. The trend of the gold market will fluctuate according to developments in the Strait of Hormuz as well as signals from the FED in the coming period.

Source: https://nld.com.vn/gia-vang-hom-nay-2-5-dao-chieu-di-xuong-196260502061742762.htm