Gold prices fall from 2-year peak

ANTD.VN - World gold prices fell as US inflation remained high, pulling domestic gold prices down from the two-year high set yesterday.

After a strong increase to a 2-year high yesterday, the domestic SJC gold price has slightly decreased this morning. Saigon Jewelry Company (SJC) listed the price of this gold brand early this morning at 69.40 - 70.12 million VND/tael (buy - sell), down 150 thousand VND/tael compared to yesterday's closing price.

However, compared to early this morning, this business is listing the same price.

Similarly, other gold trading businesses also adjusted the price of gold bars down by about 100 - 150 thousand VND per tael.

Accordingly, DOJI Group listed at 69.35 - 70.20 million VND/tael, down 100 thousand VND/tael compared to the end of yesterday but still 200 thousand VND higher than early this morning;

Phu Quy SJC listed this morning at 69.50 - 70.20 million VND/tael; Bao Tin Minh Chau 69.68 - 70.33 million VND/tael.

Giá vàng SJC giảm từ mức cao nhất trong vòng 2 năm ảnh 1

SJC gold price drops from 2-year high

The price of gold rings and other brands of gold today is relatively stable compared to yesterday's session. Thang Long Dragon Gold round rings are traded at 56.732-57.62 million VND/tael (buy/sell). PNJ gold is 56.60 - 57.60 million VND/tael; SJC rings are also listed at 56.50 - 57.50 million VND/tael...

Domestic gold prices have turned down in the context of world gold prices also being under pressure from the rising USD. In the trading session on October 12 in the US market (last night, Vietnam time), spot gold prices fell by 5.5 USD per ounce, closing at 1,868.5 USD/ounce.

Gold prices fell after higher-than-expected inflation data was released by the US Bureau of Labor Statistics on the same day. Accordingly, the US CPI in September increased by 3.7% compared to the same month last year, 0.1% higher than the forecast of economic experts. This is the second consecutive month of increase of the US CPI, after more than a year of sharp decline.

US consumer prices rose in September amid year-high rents and gasoline prices, adding to consumer pressure. However, core inflation (which strips out gas and food from the basket of goods) slowed to 4.1% year-on-year in September 2022.

Today's report increases the odds that the Federal Reserve will raise interest rates at its December FOMC meeting. According to the CME FedWatch tool, there is a 31.4% chance that the Fed will raise its benchmark interest rate by 0.25% and a 3% chance that it will raise rates by 0.5% at the final FOMC meeting of the year. Meanwhile, the probability of a rate hike in November has increased from 9.1% yesterday to 11.8% today.

Although the probability has increased, the odds are still relatively low. Therefore, this report had a moderate impact, sending the dollar and US Treasury yields higher. The USD-Index is currently at a high of around 106.45 points, and the strength of the greenback is completely the "culprit" leading to the decline in gold prices.

The current heightened geopolitical tensions with the escalating war between Israel and the Islamist militant group Hamas as well as Russia’s invasion and war with Ukraine have greatly supported gold’s inherent safe-haven status. Gold continues to be a safe-haven asset during times of political and financial uncertainty.

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