Buying gold at its peak, buyers suffered heavy losses of 3 million VND/tael

Reached the peak of 62 million VND/tael

Gold priceDomestic gold prices increased sharply last week following the world trend. Gold prices have returned to their 2020 peak when they reached 62 million VND/tael. On November 17, the price of 9999 gold officially reached 62 million VND/tael. The difference in gold prices widened from about 7 million VND/tael to about 10 million VND/tael.

Gold price today November 21: Weekend drop, speculation collapses

The price of gold at SJC is listed at 59.3 million VND/tael (buy) and 60.52 million VND/tael (sell) in Hanoi. In Ho Chi Minh City, the price of SJC gold is listed at 59.3 million VND/tael (buy) and 60.5 million VND/tael (sell).

Compared to the highest price of the week at 62 million VND/tael, gold buyers lost about 3 million VND/tael last week.

World gold fell sharply at the weekend

At the end of Friday's trading session, spot gold fell 0.6% to $1,848.05/oz. Gold futures fell 0.5% to $1,851.60/oz.

Recently, according to the US Federal Reserve (Fed), the European Central Bank (ECB) and the Bank of England, it is too early to raise interest rates. This prevents inflation from falling immediately, thereby positively affecting gold prices.

Societe Generale analysts forecast gold prices to average $1,950 an ounce in the first quarter of 2022, with the Fed’s renewed commitment to support the economy despite rising inflation. Investors expect inflation to rise far beyond the trend in interest rates, which is the basis for predicting gold prices will continue to recover by the end of the year.

According to Mr. EB Tucker, Director at Metalla Royal, the rising inflation situation that may even last into 2022 is the driving force for investors to seek shelter in gold vaults. "In the context of rising inflation, safe-haven assets such as gold will benefit."

Citigroup analysts also said that gold prices exceeding $1,850/ounce could attract more new investors to gold. The $1,900/ounce mark would therefore become an attainable price threshold.

Forecasts suggest that gold prices will continue to rise until the second half of 2022. Current high inflation is expected to persist for the next six months or longer, longer than initially forecast. Investors are starting to raise expectations that gold prices could return to their 2020 record highs of over $2,000 an ounce in 2022.

Short-term assessment, Ilya Spivak of the portalmarketDailyFX (US) said that the focus on the possibility of interest rate hikes and their impact on inflation makes short-term gold price fluctuations very sensitive to economic data such as personal consumption spending, expected to be announced next week./.