Free fall, heavy losses

Domestic gold price

Domestic gold price closed on December 27.

Domestic gold price developments

Source: VDOS Dragon Online Service Joint Stock Company.

World gold price developments

Source: Kitco

Source: Kitco

In just one trading session, the gold price adjusted down to 6 million VND, causing investors to suffer heavy losses. If they bought gold from DOJI Group on the morning of December 28 at 80 million VND/tael and sold it the same afternoon, investors would lose 8 million VND/tael. Meanwhile, the loss of customers of Saigon Jewelry Company SJC would be 5.4 million VND/tael.

World gold prices are anchored at a high level in the context of the USD falling to near its lowest level in 5 months. Recorded at 7:45 p.m. on December 28, the US Dollar Index, which measures the greenback's fluctuations against 6 major currencies, was at 100,510 points (down 0.14%).

World gold prices rose and remained at the peak as traders sought gold amid speculation that the US Federal Reserve (FED) would cut interest rates in 2024, while the US dollar and falling bond yields also supported gold prices.

Senior market strategist at RJO Futures - Mr. Bob Haberkorn - commented that moving into 2024, the factor affecting the gold market is the possibility that central banks around the world will lower interest rates.

London's benchmark gold price rose to a record high of $2,069.40 an ounce, surpassing the previous record set in August 2020, the London Bullion Market Association said.

Gold prices are also under some pressure. Asian stocks mostly rose in the afternoon session of December 28, with Hong Kong (China) posting the strongest gains as investors expect the US Federal Reserve (FED) to cut interest rates next year.

Global stock markets have rallied since the Fed's last meeting, when it signaled the rate-hike cycle may be coming to an end as global inflation slows.

Although US inflation has slowed, it remains above the Fed's long-term target of around 2% and analysts warn that consumer spending has yet to return to healthy levels.

US retail sales during the crucial holiday shopping season rose 3.1% year-over-year, but that was down sharply from the 7.6% increase the previous year, according to a Mastercard SpendingPulse survey.

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