Precious metals hit bottom, losing $1,900/ounce mark

The world gold price today listed on Kitco is at 1876 USD/ounce, down 24 USD/ounce compared to early this morning.

Gold prices fell sharply today as the USD rose to 106.4 points.

The USD is not necessarily rising because the US economy is improving, but because US interest rates are very high. The US prime interest rate (federal funds rate) is at a 22-year high of 5.2 - 5.5%.

Meanwhile, interest rates in many other countries are lower. The overnight interest rate in the interbank market in Vietnam is at 0.17%. The large interest rate differential has led to the phenomenon of carry trade, thereby causing the demand for USD to skyrocket.

Gold prices plummeted today. (Photo: Kitco).

This also means that selling pressure on other currencies, including the Japanese yen, Swiss franc and gold, has increased sharply.

Gold price movements today

+ Domestic gold price

At 6:30 a.m. on September 28, the gold price at Doji was listed at 68 - 68.8 million VND/tael (buy - sell), down 100,000 VND/tael compared to yesterday afternoon.

Meanwhile, the gold price at SJC was listed at 68.1 - 68.8 million VND/tael (buy - sell), unchanged from yesterday.

+ International gold price

The world gold price listed on Kitco is at 1,876 USD/ounce, down 28 USD/ounce compared to early this morning. Gold futures last traded at 1,895 USD/ounce.

Gold Price Forecast

According to some analysts, the gold price decline could push prices to a 2023 low of $1,810 an ounce in the spot market.

A sell-off was triggered after the Fed signaled it would maintain restrictive monetary policy for the foreseeable future even as its tightening cycle ends.

The US central bank's aggressive stance pushed bond yields to fresh 16-year highs and the dollar to its highest since November, pushing gold off its August low of $1,885 an ounce.

James Stanley, senior market strategist at Forex.com, sees initial resistance around $1,850 an ounce.

Ngoc Vy

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