World gold price fluctuated slightly, domestic gold leveled off

The world gold price is forecasted to have slight fluctuations

World gold price in the early morning of May 22 (Vietnam time) was anchored at $1,846.7 per ounce, equivalent to about 51.7 million dong/tael.

In the past week, gold witnessed a strong recovery when US stock market ended 7th consecutive week in negative territory. In the middle of this week, the S&P 500 index fell more than 4%, its worst intraday drop since June 2020 when the global COVID-19 pandemic first rocked markets.

Blue Line Futures chief market strategist Phillip Streible is bullish on gold as investors look to hedge against further weakness in financial markets. He added that in the current environment, both gold and USD are “companioning” as safe-haven assets.

“The stock market could still get a lot worse. There are signs indicating the condition economy in America is beginning to deteriorate”he said.

The US stock market is deteriorating as rising inflationary pressures weigh on corporate earnings. At the same time, rising interest rates are tightening financial market conditions.

Many analysts expect gold prices to break through initial resistance at $1,850 an ounce as the greenback loses some of its bullish momentum as the US Dollar Index ends the week down about 1.4% after falling Trading near a 20-year high. Along with that, bond yields continued to fall after touching a three-year high above 3% two weeks ago.

According to Colin Cieszynski, market strategist at SIA Wealth Management, the dollar has been trending lower recently. On the contrary, gold started to regain its upward momentum. The fact that there is still a lot of uncertainty and volatility in the financial markets will continue to support the precious metal, he said.

In an environment of great uncertainty and volatility, gold will once again assert its position as an important safe-haven asset, said Sprott Inc CEO Peter Grosskopf.

Adrian Day, president of Adrian Day Asset Management, said that he is bullish on gold as risks grow to the possibility that the US economy could fall into a recession, due to rising inflation or policy mistakes. from the US Federal Reserve (FED). He said that the Fed will not be able to achieve its goal of bringing inflation down to 2% without causing a recession.

Domestic gold price is still high

After suddenly increasing sharply in the early morning of May 21, the domestic gold price in the early morning of this morning slowed down and traded near the threshold of 69 million VND/buying volume and 70 million VND/selling volume.

In the morning, the price of SJC gold in Hanoi and Da Nang area was listed by Saigon Jewelry Company at 68.95 million VND/tael purchased and 69.87 million VND/tael sold. In Ho Chi Minh City, SJC gold is still buying at the same level as in Hanoi and Da Nang but selling for less than 20,000 dong. Thus, compared with dawn of the previous day, SJC gold price increased by 50,000 dong in both directions.

SJC gold price early this morning was adjusted by Phu Quy Jewelry Company to increase by 100,000 VND in the afternoon of purchase to 69 million VND/tael, but kept the previous day’s selling price at 69.7 million VND/tael. .

Meanwhile, DOJI brand gold remained at the same trading price on Saturday at 68.9 million dong/tael bought and 69.6 million dong/tael sold. Viettinbank Gold is still at 68.9 million VND/tael bought in and 69.82 million VND/tael sold.

With the domestic gold price fluctuating slightly and the world gold price anchoring at $1,846.7/ounce (equivalent to VND51.7 million/tael if converted at Vietcombank exchange rate, excluding taxes and fees), the difference between the prices Gold in the country and the world did not change much compared to the previous day.