World gold price about 11.1% higher (204 USD/ounce) compared to the beginning of 2023. World gold converted to USD bank price is 60.9 million VND/tael, including taxes and fees, about 17% lower. 3 million VND/tael compared to the domestic gold price as of late afternoon on February 21.
Domestic gold prices decrease rapidly during Tet and the day of the God of Wealth. Photo: Nguyen Hue.
Gold prices cannot increase further after the USD stabilizes. The DXY index (which measures the movement of the USD against a basket of 6 major currencies) was stable at 104.1 points.
Gold tends to cool down due to increased profit-taking pressure after the precious metal commodity went up for 4 consecutive sessions and stayed above the threshold of 2,000 USD/ounce.
Besides, the peak season for gold consumption is fading away. Chinese and Vietnamese markets through the Lunar New Year holiday. The day of the God of Wealth, an opportunity to buy gold for luck, has also passed.
Investors are currently waiting for clearer signals about the monetary policy of the US Federal Reserve (Fed) through dissecting the minutes of the recent policy meeting. The minutes will reveal insider details related to the stance of members of the Fed’s Open Market Committee (FOMC) on monetary policy.
Previously, the Fed signaled to cut interest rates three times in 2024, with a total cut of 75 percentage points, bringing US operating interest rates from a record high in the past 22 years to 5.25-5, 5% down to 4.5-4.75%/year.
Initially, the market expected the Fed to lower interest rates right from the March meeting and later in May. After that, many Fed officials said that it was still early for the US Central Bank to reverse monetary policy. because inflation is still high.
Gold price forecast
Investors are currently looking for clues about when the Fed will cut interest rates for the first time since March 2022. Many forecasts say that the Fed will lower interest rates at its June meeting.
In the long term, the USD will decrease following the Fed’s interest rate cuts. Gold prices accordingly increased rapidly.
Gold is also supported by possible prolonged instability in Ukraine and the Middle East. There are no signs that geopolitical tensions in these areas will cool down anytime soon.
Precious metal products are also supported by the demand for physical gold in many countries.
On Kitco, expert Stuart O’Reilly from Royal M said that the British economy is falling into recession. Many investors seek safety in gold investment channel.
