Gold temporarily leaves the 3,400 USD/ounce mark, the new week is unpredictable amid a series of geopolitical fluctuations

Gold has temporarily left the $3,400/ounce mark after a weekly decline of 1.89%. However, in the face of a series of geopolitical fluctuations over the weekend, the gold market still has many potential supporting factors, as investors continue to look for safe havens.

Global gold prices reversed course and fell nearly 1.9%.

Last week, international gold prices reversed course and fell after two consecutive weeks of gains, despite escalating tensions in the Middle East. At the close of the week, spot gold reached $3,368 per ounce, down 1.89% from the previous week. August gold futures on the Comex exchange also declined to $3,384 per ounce.

Selling pressure intensified last week as investors sought to offset losses in other markets amid escalating Middle Eastern tensions and ongoing tit-for-tat attacks between Israel and Iran. Israeli fighter jets continued to target Iranian military objectives, particularly missile component and engine manufacturing sites, while Iran continued to launch missiles toward Israel. Market sentiment became even more cautious amid the risk of direct US military intervention in Iran.

Although US President Donald Trump had previously stated he would dedicate two weeks to diplomacy before deciding whether to attack Iran, an airstrike targeting Iranian nuclear facilities took place just hours ago. According to CNN, President Trump stated that the US had completed attacks on three nuclear sites in Iran: Fordow, Natanz, and Esfahan. Following the attacks, all US aircraft are now outside Iranian airspace. Iran confirmed the nuclear facilities were attacked but did not specify the extent of the damage.

On his social media page, the US president also stated that any retaliatory action by Iran against the United States would be met with a force greater than what has already occurred.

World gold prices adjusted after surpassing $3,450 per ounce earlier in the week.

During the week of June 16-20, the market's focus was also on the monetary policy meeting of the US Federal Reserve (Fed). Although the Fed kept interest rates unchanged and signaled two rate cuts in 2025, Chairman Jerome Powell warned that inflation could continue to rise due to the impact of President Trump's new tariff policies.

Following the Fed's decision not to lower interest rates, Trump once again attacked Chairman Powell and mentioned the possibility of choosing a successor soon amid signs of a slowing US economy. "Maybe, just maybe, I'll reconsider firing him. But his term is almost over anyway," the US President posted on Truth Social.

Domestic gold prices, however, continued to rise slightly.

Despite the downward trend in global prices, domestic SJC gold bars saw a slight increase of 200,000 VND/ounce this week. At Saigon Jewelry Company (SJC), gold prices closed the week at 117.7 – 119.7 million VND/ounce (buy – sell). Other major gold trading companies such as DOJI, Bao Tin Minh Chau, and Mi Hong... quoted similar prices. Plain gold rings at Bao Tin Minh Chau were traded at 114.5 – 117.5 million VND/ounce.

Recently, the Vietnam Gold Business Association submitted a document providing feedback on the draft amendments and additions to Decree 24 on the management of the gold market (Decree 24). Notably, the Association suggested that credit institutions, especially commercial banks, should not be included in the production and trading of gold bars, as commercial banks do not have the function or responsibility of producing gold. According to the Association, if commercial banks are allowed to participate in the production and trading of gold bars, they would be forced to invest a significant amount of capital in factories, machinery, and workforce training, investing in areas outside their main function and responsibility of providing credit and capital support to businesses to achieve economic growth targets.

Furthermore, the Vietnam Gold Business Association offered suggestions regarding the conditions for obtaining a license to produce gold bars. The Association argued that the requirement of a minimum charter capital of 1,000 billion VND is too strict, meaning only 1 to 3 gold production and trading businesses can meet this condition. The Association proposed a minimum charter capital of 500 billion VND. Additionally, the focus should be on the production capacity of the business, its business efficiency, reputation, brand presence in the market, the design and quality of the gold bars, and its compliance with state regulations related to gold trading.

SJC gold bar prices at Saigon Jewelry Company.

Meanwhile, the USD/VND exchange rate remains quite tense, with selling rates at banks pegged at the ceiling from the end of last week throughout this week's trading sessions.

The central exchange rate announced by the State Bank of Vietnam on June 20th was 25,031 VND/USD, a sharp increase of 56 dong compared to the end of last week. The regulated ceiling exchange rate is 26,282 VND/USD. At Vietcombank, the listed exchange rate at the end of the week was 25,922 – 26,282 VND/USD (buy – sell), an increase of 59 VND/USD. On the free market, the selling price of USD, although slightly adjusted downwards at the end of the week, remained close to the 26,400 VND/USD mark.

The US dollar also recorded a week of gains, but only slightly. The US Dollar Index (DXY) closed at 98.6 points on the final trading day of the week as investors continued to seek the USD as a safe haven asset amid rising political tensions and global trade uncertainty.

Next week, geopolitical developments in the Middle East will continue to impact investor sentiment in financial markets, which are sensitive to volatility. Investors will also closely monitor Federal Reserve Chairman Jerome Powell's testimony before Congress, along with a series of key economic data releases such as the PCE report – the Fed's preferred measure of inflation. Preliminary PMIs in the US, Eurozone, Japan, China, and India will also be released, providing signals about global growth prospects. US-China trade negotiations are also likely to be a key factor influencing investor sentiment.

Source: https://baodautu.vn/vang-tam-roi-moc-3400-usdounce-tuan-moi-kho-doan-dinh-giua-loat-bien-dong-dia-chinh-tri-d310487.html