World gold price drops more than 1% due to profit-taking wave

World gold prices fell more than 1% in the session on June 16 as traders took profits after the precious metal hit an eight-week high.

Gold is displayed at the Shchyolkovo plant of Yuzhuralzoloto Precious Metals Group, Russia. Photo: TASS/TTXVN

Meanwhile, the market is still focused on the tension between Israel and Iran as well as the US Federal Reserve's policy meeting this week.

At around 0:53 a.m. on June 17, Vietnam time, spot gold fell 1.2% to $3,392.86 an ounce, after hitting its highest level since April 22 earlier in the session. Earlier, on June 13, gold prices rose more than 1%. US gold futures closed down 1% to $3,417.30 an ounce.

Gold prices have been rising in recent sessions, largely in response to the conflict between Israel and Iran, so the decline in gold prices today is likely due to profit-taking after the previous rally, said David Meger, director of metals trading at High Ridge Futures.

Amid geopolitical tensions, Iran has called on US President Donald Trump to force a ceasefire from Israel as the only way to end the four-day air war. Meanwhile, Israeli Prime Minister Benjamin Netanyahu declared his country was on the "path to victory".

Investors are also focusing on the Fed's two-day policy meeting, which ends on June 18. The Fed is expected to keep interest rates unchanged.

Mr. Meger said that at this point, the Fed seems inclined to hold its ground, given the significant uncertainties in the economy , from tariffs to geopolitical tensions. Therefore, it would not be surprising if the Fed delayed any rate cuts, essentially postponing the decision.

Gold is considered a safe haven asset in times of geopolitical uncertainty and rising inflation. The metal also benefits from a low interest rate environment.

In other precious metals, spot silver was steady at $36.33 an ounce. Platinum rose 2 percent to $1,252.57 an ounce, while palladium rose 0.8 percent to $1,036.10 an ounce.

In Vietnam, on the afternoon of June 16, Saigon Jewelry Company listed the price of SJC gold in the Hanoi market at 117.60 - 119.60 million VND/tael (buy - sell).

According to VNA

Source: https://doanhnghiepvn.vn/kinh-te/gia-vang-the-gioi-giam-hon-1-do-lan-song-chot-loi/20250617081342319