The Fed has not yet met, but gold prices have fallen sharply – investors are shocked and worried

(Baohatinh.vn) - The domestic and world gold markets simultaneously weakened as investors waited for signals from the Fed, SJC fell below 125 million VND/tael.

World gold prices weaken ahead of Fed Chairman's speech. Photo: Reuters.

In the morning trading session on August 20 (Vietnam time), domestic gold prices fell across the board. In particular, SJC gold bar prices fell by VND200,000/tael in both directions, currently listed at VND123.8 - 124.8 million/tael (buy - sell). For gold rings, the selling price this morning also dropped from VND119.5 million/tael to VND119.3 million, while the buying price dropped from VND117 million to VND116.8 million/tael.

This decline was mainly influenced by the world gold market. At the end of the trading session on August 19 (US time), the world spot gold price fell to 3,314 USD/ounce - the lowest level since early August. Since last week, the gold market has been moving sideways around the 3,320-3,340 USD/ounce range before plunging to near the 3,310 USD mark.

World gold prices are weakening. Photo: Kitco.

"Overall, traders are adjusting their positions in the futures market ahead of the Jackson Hole conference… the market will be quiet until then," said Jim Wyckoff, senior analyst at Kitco Metals.

The Fed's annual meeting in Jackson Hole, Wyoming, is taking place this week, with Fed Chairman Jerome Powell expected to speak on the economic outlook and monetary policy. Meanwhile, US President Donald Trump continues to call for the Fed to cut interest rates more aggressively.

Mr. Wyckoff predicts that Mr. Powell could send a more "dovish" signal, thereby supporting the prices of gold and silver - which are considered the safest assets when economic and political instability occurs and often benefit in a low-interest-rate environment.

According to CME's FedWatch tool, the market is now predicting an 85% chance that the Fed will cut interest rates by 0.25 percentage points in September. On the same day, Mr. Trump said he hopes Russian President Vladimir Putin will move to end the war in Ukraine.

On the economic data front, the minutes of the Fed's July meeting will be released on August 20, expected to provide further signals on the US economic outlook.

Meanwhile, UBS has just raised its gold price forecast by the end of March 2026 by $100, to $3,600/ounce, due to macroeconomic risks in the US, the decline in the use of the USD and strong investment demand.

In other precious metals, spot silver fell 1.8% to $37.3 an ounce, platinum fell 1.1% to $1,307.9 an ounce. Palladium fell 1.6% to $1,104.7 an ounce.

Source: https://baohatinh.vn/fed-chua-hop-vang-da-rot-gia-manh-nha-dau-tu-lo-soc-post294038.html