Global financial markets recorded a week of strong volatility after the US election on November 5. The US stock market increased rapidly and continuously set new record highs.

On November 11 (early morning of November 12, Vietnam time), the Dow Jones Industrial Average rose more than 300 points, surpassing the 44,000-point mark for the first time. The broad-based S&P 500 stock index hit a record high of over 6,000 points. The Nasdaq Composite technology index also jumped to a new high of nearly 19,300 points.

The US dollar continued to rise after Mr. Trump won the election. The US dollar index (DXY) reached 105.55 points.

The cryptocurrency market is boiling, the prices of most codes are increasing rapidly. Bitcoin has reached the threshold of 89,000 USD/BTC for the first time in history. The prediction of 100,000 USD/BTC which used to sound far-fetched is now about to become a reality.

Compared to the time before the US election, Bitcoin has increased by nearly 22,000 USD per BTC, equivalent to an increase of nearly 33% within a week from November 5-12. Compared to the beginning of the year, Bitcoin has more than doubled, from 42,230 USD to 89,000 USD as at present. Bitcoin's market capitalization reached 1,770 billion USD.

Oil prices fell sharply, and the yield on 10-year US bonds rose sharply to 4.4% per year, reflecting increased inflation and budget risks.

Meanwhile, the price of gold has been plummeting. Before the US election, the spot price of gold fell from its historic peak of $2,789/ounce on October 30 to $2,750/ounce on November 5, then fell to $2,610/ounce on the night of November 11 (Vietnam time).

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World gold prices plummet, domestic plain gold rings fall to 80 million VND/tael. Photo: Chi Hieu

Gold fell sharply mainly due to the increase in the value of the USD. Investors bet on the possibility that Mr. Donald Trump could cool down geopolitical tensions in many regions, including Ukraine and the Middle East... Money flowing into other risky channels, such as the stock market, the cryptocurrency market,... could also be a factor that pulls down the price of gold.

Gold prices also fell due to increased short selling as the gold price's upward trend was halted by the event of Donald Trump's election victory and a series of negative factors weighing on the commodity. Profit-taking pressure after gold's price increased by 35% since the beginning of the year combined with short selling activities may have been sinking gold prices.

The adjustment in world gold prices was predicted in advance. The absolute decrease so far is quite large. From the peak of 2,789 USD/ounce to 2,622 USD/ounce at 8:00 am on November 12, gold has lost 167 USD.

However, in relative terms, the decline was closer to 6%.

In fact, with gold, 10-15% corrections are not much, because the general trend of gold is to increase in price according to world inflation.

Some forecasts suggest that spot gold prices could fall to $2,500/ounce, a 10.4% drop from the peak (recorded on October 30).

At that time, the converted domestic gold price was only about 77 million VND/tael.

However, the number of gold price forecasts at $2,500/ounce is not much.

Gold is being ignored, being sold off by investors around the world and this situation has occurred at times in Vietnam. So will gold continue to plummet to 2,500 USD/ounce, domestically down to 70 million VND/tael and when will it turn around and increase again?

Sharing with VietNamNet, banking and finance expert Dr. Nguyen Tri Hieu said that the gold market is strongly affected by geopolitical fluctuations in the world. If tensions continue, gold prices will increase again.

According to Dr. Nguyen Tri Hieu, public debt, inflation and Donald Trump’s extreme tax policies are likely to bring gold prices back to their old levels. The pressure on gold prices may only last for a short time.

Sharing at the weekend, a financial expert analyzed that gold lost value due to the increase in the USD and the flow of money betting on risky assets. Gold is expected to be indifferent for a while, until investors suddenly realize the debt situation and the pressure of the US budget deficit. At that time, gold will increase again, but it may take several months.

Gold price plummets, plain rings lose 6 million VND: Will it continue to fall deeply? World gold prices fell sharply after Mr. Donald Trump was elected the 47th President of the United States. Domestic plain gold rings fell 5-6 million VND/tael. What will happen to gold prices in the near future, will they continue to fall deeply?