Will gold prices fall further?

At 11:30 a.m., the world gold price was at 3,029 USD/ounce, down about 26 USD/ounce compared to yesterday's peak, equivalent to a decrease of 806,000 VND/tael.

Domestic gold prices also plummeted.

This morning, SJC Company listed the price of SJC gold bars at 99.5 million VND/tael, down 900,000 VND/tael compared to yesterday's peak. The buying price is 97.5 million VND/tael.

The price of gold rings is 100,000 VND/tael lower than the price of gold bars in both buying and selling directions.

At PNJ Company, today the selling price of gold rings is 99.4 million VND/tael, the buying price is 97.9 million VND/tael, down 400,000 VND/tael in the selling direction and 200,000 VND/tael compared to the end of yesterday.

At Bao Tin Minh Chau Company, the price of gold rings also fell from 100.3 million VND/tael to 99.9 million VND/tael. The buying price also decreased by 750,000 VND/tael to 97.8 million VND/tael.

With the price of 3,029 USD/ounce, converted according to the exchange rate listed at the bank, the world gold price is equivalent to 94 million VND/tael.

Compared to the converted world gold price, the domestic gold price is 5.5 million VND/tael higher. This difference is more than 4 times higher than about 10 days ago.

Profit-taking pressure pushes gold prices down

World gold prices have been setting records recently, but after reaching $3,055/ounce, world gold prices have turned down due to profit-taking pressure.

However, according to analysis, this is likely just a correction of gold prices after they have increased too much. Gold prices still have room to increase again due to support from interest rates and geopolitical tensions.

Accordingly, at the monetary policy meeting that ended on Wednesday this week, the US Federal Reserve (Fed) signaled that it would cut interest rates twice this year.

Fed Chairman Jerome Powell expressed concern that tariffs could reduce consumption, leading to downward pressure on the economy. In addition, the Fed also raised its inflation forecast and lowered its growth forecast for the world's largest economy in 2025.

The possibility of the US economy falling into a state of stagflation is considered beneficial for gold prices, because in such an environment, gold plays both the role of a "safe haven" when economic growth declines and the role of a leading anti-inflation investment channel.

Increasing tensions in the Middle East are a reason for investors to hold gold at this time.

ÁNH HỒNG