Gold prices plummeted, hitting a 5-month low.

Domestic gold prices

At the close of trading on August 19th, the price of 9999 gold bars at SJC Ho Chi Minh City was 67 million VND/ounce (buying price) and 67.7 million VND/ounce (selling price). SJC Hanoi listed the price at 67 million VND/ounce (buying price) and 67.72 million VND/ounce (selling price).

Doji Hanoi listed gold at 66.95 million VND/ounce (buying price) and 67.75 million VND/ounce (selling price). Doji Ho Chi Minh City bought SJC gold at 67.05 million VND/ounce and sold it at 67.65 million VND/ounce.

International gold prices

On the global market, the spot gold price on the Kitco exchange on August 19th (at 2 PM, Vietnam time) was trading at $1,889 per ounce.

At current prices, the world gold price, converted to VND (including taxes and processing fees), differs from the domestic SJC gold price by approximately 12.35 million VND per ounce.

Growing concerns that the Federal Reserve (Fed) may maintain interest rates higher than initially expected in an effort to control inflation have dampened the gold market. Gold prices ended the week at their lowest level in five months.

Meanwhile, US bond yields rose, reaching a 15-year high on Thursday, making gold less attractive.

China's July economic data fell short of expectations. Evergrande's filing for bankruptcy protection in the US further shook investor confidence. This deepening crisis of confidence is adding more pressure to the world's second-largest economy.

According to The New York Times, a weakening Chinese economy means a significant contraction in demand for commodities, including gold. Over the past 10 years, China has generated more than 40% of global economic growth, compared to 22% for the US and 9% for the 20 eurozone countries, according to an analysis by Canadian research firm BCA Research.

Gold price forecast

Despite optimistic views that gold prices could regain their luster by the end of the year, analysts warn the precious metal is likely to fall further next week.

The world's largest gold exchange-traded fund, SPDR Gold Trust, reduced its holdings by 6.93 tonnes on August 17. The fund now holds 887.50 tonnes, its lowest level since January 2020.

Source