World gold prices fell 5.5% in just one session, pulling down domestic prices as the USD strengthened and investors rushed to take profits after expectations of the Fed lowering interest rates.
At the end of the trading session on October 21, the price of SJC gold bars was listed by large enterprises at 151.5-152.5 million VND/tael (buy – sell), a difference of 1 million VND. The previous peak of this item was 153.6-154.6 million VND/tael. Thus, each tael of gold bar has decreased by 2.1 million VND/tael in both buying and selling directions.
Meanwhile, the listed price of gold rings is stable at 149.6-151.8 million VND/tael (buy – sell).
Domestic gold prices fell sharply in line with the international market. In the world, spot gold prices are currently at 4,110 USD/ounce, down 250 USD compared to the previous session, equivalent to a decrease of 5.5%. This is the sharpest decrease ever recorded in a trading session.
Compared to the recent peak price of 4,381 USD/ounce, the price of precious metal has lost nearly 280 USD/ounce.
World gold price falls sharply, sold off strongly – 1
Gold jewelry items on display (Photo: Manh Quan).
Some brands sell gold rings for over 160.5 million VND/tael
Previously, on October 20, gold prices hit a record high of 4,381.21 USD/ounce, equivalent to an increase of more than 60% since the beginning of the year, supported by geopolitical and economic instability, expectations of interest rate cuts and strong net buying activities from central banks.
“Despite the fall in gold prices, many people still choose to buy. But the recent spike in volatility at the peak is seen as an encouraging signal for short-term profit-taking,” said Mr. Tai Wong, an independent metals trader.
In addition, the greenback index, the USD-Index, increased by 0.4%, making gold more expensive for holders of other currencies. The USD and gold often move in opposite directions.
“The increased risk-on sentiment among investors in the market earlier this week is a negative factor for safe-haven metals like gold,” said Jim Wyckoff, senior analyst at Kitco Metals.
Traders are awaiting US consumer price index (CPI) data, due on October 24 after a delay due to the US government shutdown. The September CPI figure is forecast to have risen 3.1% year-on-year.
The US government has been shut down for 20 days. Last week, senators failed for the 10th time to break the deadlock, preventing the release of key economic data.
According to the CME FedWatch tool, the market now expects the US Federal Reserve (Fed) to cut interest rates by 25 basis points (0.25%) at its meeting next week. The market also believes the agency will cut interest rates again in December. Gold tends to rise in a low interest rate environment.
Investors are also closely watching the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping scheduled to take place next week.
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