Gold prices today, May 27th: Reverse course and plummet.

World gold prices fell sharply today as new US attacks on Iran pushed crude oil prices higher, increasing concerns about inflation and the possibility of US interest rates remaining high for a longer period.

Analysts say the uncertainty has triggered a rise in oil prices, fueled inflation fears, and reinforced expectations of tighter monetary policy from the Federal Reserve, creating headwinds for gold – a non-yielding asset.

Investors are currently awaiting the US PCE data for April, scheduled for release on Thursday, for further information on US monetary policy.

Meanwhile, UBS has lowered its year-end gold price target to $5,500 per ounce, citing persistent risks from higher yields and a stronger US dollar.

Gold price movements today

+ Domestic gold prices

At 6:00 AM on May 27th, the price of gold bars at Doji and SJC was listed at 158.5 million VND/ounce (buying price) and 161.5 million VND/ounce (selling price), a decrease of 500,000 VND/ounce in both directions compared to the beginning of yesterday morning.

Meanwhile, the price of gold rings is currently listed by Doji at 158.5 million VND/ounce - 161.5 million VND/ounce, also down 500,000 VND/ounce.

+ International gold prices

The world gold price listed on Kitco is at $4,501 per ounce, down $72 per ounce compared to early yesterday morning.

Gold price forecast

U.S. Secretary of State Marco Rubio said on May 26 that negotiating an agreement with Iran could take several days. This statement dashed hopes of an early end to the conflict. Earlier, U.S. forces had launched attacks on southern Iran.

Gold prices reversed course and fell sharply today, May 27th. (Illustrative image).

Experts believe that although the US and Iran are finalizing the last steps for a peace agreement, the damage inflicted on oil production facilities in the Middle East could make it difficult for the region's oil supply to the world to recover anytime soon.

The oil market has begun to reflect this reality in prices. In the same trading session, Brent crude oil prices rose 2% as an agreement to end the war and reopen the Strait of Hormuz remained elusive.

The continued high price of crude oil could stimulate inflation and force central banks to keep interest rates higher for longer periods. While gold is considered an effective hedge against inflation, rising interest rates tend to put significant pressure on this non-yielding precious metal.

According to data from CME Group's FedWatch tool, the market is currently anticipating that the US Federal Reserve (Fed) will raise interest rates this year, with a 56% probability that the Fed will raise rates in December.

PHAM DUY

Source: https://vtcnews.vn/gia-vang-hom-nay-27-5-quay-dau-lao-doc-ar1020160.html