World gold price this morning was at 1,989 USD/ounce, down 27 USD compared to the previous day.
Matt Simpson, senior analyst at City Index Financial Services, said the market is also concerned that Fed members are not raising the possibility of cutting interest rates this year.
On May 15, Fed officials signaled that they still need to keep interest rates high, and that they will continue to adjust rates higher if necessary, as inflation may slow while the economy shows only temporary signs of weakness.
Rising interest rates reduce the appeal of non-yielding assets such as gold, pushing prices lower, even though the precious metal is seen as a hedge against inflation and economic uncertainty. Gold’s failure to hold above its previous record high has also shaken investor confidence.
Gold price movements today
+ Domestic gold price
At 6:00 a.m. on May 17, the gold price at Doji was listed at 66.55 - 67.15 million VND/tael (buy - sell), down 50,000 VND/tael in both buying and selling directions compared to yesterday morning.
Meanwhile, the gold price at SJC was listed at 66.55 - 67.15 million VND/tael (buy - sell), down 100,000 VND/tael in both directions compared to yesterday afternoon.
The price of gold rings and jewelry of all kinds is traded around 55.18 - 57.45 million VND/tael.
+ International gold price
At the same time, the world gold price listed on Kitco was at 1,989 USD/ounce, down 27 USD compared to the previous trading session.
The world gold price on the night of May 16 was about 10% higher (182 USD/ounce) than at the beginning of 2023. World gold converted to the bank USD price was 57.7 million VND/tael (including taxes and fees), about 9.4 million VND/tael lower than the domestic gold price as of the end of the afternoon session on May 16.
Gold was under pressure to fall as the DXY index - measuring the greenback's performance against a basket of six major world currencies - rose sharply to 102.4 points. Previously, the index had fallen to 101 points.
The US dollar rose again as many investors said they had bet too early on the possibility that the US Federal Reserve (Fed) would quickly reverse its monetary policy and cut interest rates after 10 consecutive increases.
In fact, Fed officials are showing that they are still sticking to their overriding goal of controlling inflation.
US inflation in April 2023 increased only 4.9% year-on-year (lower than 5% in the previous month and the peak of 9.1% in June 2022). However, this is still high compared to the 2% target.
Gold Price Forecast
On Kitco, Georgette Boele, senior economist at ABN AMRO, said that the precious metal is losing momentum after increasing 10% since the beginning of the year.
Gold has been rising since the beginning of the year as investors expect the Fed’s rate hike cycle to end soon, according to Georgette Boele. Concerns about the economic outlook, high inflation and geopolitical tensions have also pushed gold up.
However, Georgette Boele noted that the rally has been held back at current levels, with the Fed not signaling an early rate cut as the market had expected.
“The market is expecting the Fed to start cutting rates in the third quarter. This is reflected in gold prices (up). However, we think the rate cut will come later, possibly by the end of the year,” Boele said.
Besides, the USD has not decreased in price, which will affect the gold price increase in the coming months.
However, in the long term, gold is still considered to be in an uptrend. Gold could break out in 2024 when the Fed, the European Central Bank (ECB) and the Bank of England (BOE) start to loosen monetary policy.
ABN AMRO forecasts gold to hit $2,000 an ounce in 2023 and $2,200 an ounce in 2024.
Cong Hieu
Useful
Emotion
Creative
Unique
Wrath
Source
Comment (0)