Gold prices continue to fall in the first session of the week, investors are increasingly disappointed

08/14/2023 10:46 Nhat Linh Print article

ANTD.VN - It seems that investors in the world market are disappointed that the gold price has been stuck for too long, and some are selling to transfer money to the stock market.

After the unexpected increase last weekend, the gold price turned down again at the beginning of the week. SJC gold at Saigon Jewelry Company (SJC) decreased by 100 thousand VND per tael, to 66.80 - 67.42 million VND/tael. DOJI Company listed at 66.80 - 67.50 million VND/tael...

In the world, gold prices also continued to decline since the end of last week, losing nearly 2.5 USD per ounce when opening in the Asian market, trading around 1,910.7 USD/ounce.

Gold prices continue to fall in the first session of the week, investors are increasingly disappointed photo 1

Many investors are frustrated with holding gold.

The recent bearish and stuck gold market appears to have left investors tired. Ole Hansen, head of commodity strategy at Saxo Bank, said he also sees gold struggling as the opportunity cost of holding the precious metal continues to rise. That investors are frustrated with holding gold as they liquidate their positions and move into equities.

According to the expert, with the US economy still quite resilient to the strong interest rate hikes of the Federal Reserve (Fed), investors do not need to rush to buy gold and for this market to be activated, it may take some time.

Analysts note that the market remains focused on economic data as the Fed is keeping its options open as its next monetary policy will still be data-dependent. The problem for traders and investors is that the current data has not yet provided any clear direction for the agency's next move.

Last week’s consumer price index showed inflation was still well above the Fed’s 2% target, while the minutes of the July monetary policy meeting are unlikely to provide any firm guidance on the agency’s September decision.

According to some experts' forecasts, if US growth data remains stable and inflation remains high due to rising energy prices, gold may come under pressure and fall below the support level of $1,900/ounce in the short term.

However, in the long term, the precious metal still receives support as the US debt problem remains a constant concern. While not an immediate threat, the debt is still a major reason why investors are reluctant to sell too much of their gold.

Concerns about US debt levels began to grow after Fitch Ratings downgraded its long-term US debt rating.

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