.The decline is slowing down.

Gold marketDomestic gold prices have just experienced a week of sharp decline, from the threshold of 56.6 million VND/tael (the price sold by gold trading enterprises) at the beginning of the week to below the threshold of 55 million VND/tael at the beginning of the weekend trading session. The decline is quite large: 1.6 million VND/tael.

The world gold price in the trading session on the night of September 24 dropped to 1,847 USD/ounce (equivalent to 52.3 million VND/tael, excluding taxes and fees). Compared to the historical peak of 62.5 million VND/tael recorded on August 7, the domestic SJC gold price has decreased by about 8 million VND/tael.

However, the current price of around VND55 million/tael is still much higher than the price of less than VND43 million/tael at the beginning of the year and higher than the historical peak of VND49 million/tael recorded during the hot gold market in late 2011.

Illustration photo. Source: Internet

In the domestic and international markets,gold priceThere are signs of stabilization again, no longer decreasing as rapidly as in the previous few sessions. Domestic gold prices fluctuate around the threshold of 55-56 million VND/tael.

As of the end of the session on September 25, the price of SJC gold bars was listed by DOJI Gold and Gemstone Group at: VND 54.75 million/tael (buy) and VND 55.45 million/tael (sell). Saigon Jewelry Company listed SJC gold at: VND 55.15 million/tael (buy) and VND 55.65 million/tael (sell).

In the world market, the price of spot gold bars also stopped falling and hovered around the threshold of 1,860 USD/ounce. The price of gold for December delivery hovered around 1,962 USD/ounce.

The reason for the recent decrease in gold bar prices is profit-taking activities after the price of this precious metal increased sharply since the beginning of the year, from 1,520 USD/ounce (about 43 million VND/tael) at the beginning of the year to over 2,000 USD/ounce.

During the week, a number of investors also had to sell gold to cover stock losses when stock prices fell across the globe, especially in the US, as stocks rose and countries faced a resurgence of the Covid-19 pandemic.

Gold is expected to quickly reach 60 million VND/tael.

Mr. Le Quang Tri - Business Director of Tri Viet Securities JSC (TVB) said that the gold market adjusted for a few weeks after increasing continuously since the beginning of the year. However, gold is still in a long-term upward trend and may turn around and increase again in the near future.

According to Mr. Le Quang Tri, countries have been pumping large amounts of money into the markets and this is a factor supporting gold in the long term.

On Kitco, a representative of Citigroup said that the price of gold could rise above the threshold of 2,000 USD/ounce before the end of this year. Accordingly, the price of gold is supported by risks surrounding the US presidential election, between 2 candidates: current US President Donald Trump and Mr. Joe Biden.

According to Citigroup, the race to the White House has become more unpredictable and the US political situation has become more chaotic after the death of a US Supreme Court Justice.

Previously, in the first week of August, the world gold price increased to an unprecedented high in history: 2,070 USD/ounce (59 million VND/tael) in the context of investors trying to find safe investment tools amid the Covid-19 pandemic affecting all economies. However, since then, the gold price has decreased.

Gold was also supported by the historic policy change of the US Federal Reserve (Fed) in late August. Accordingly, the Fed abandoned the 30-year practice of raising interest rates in advance to prevent inflation from rising in the future to support the US labor market and economy.

With this decision, the Fed will accept periods of hot inflation in order to reach the 2% target average.

At its most recent policy meeting on September 17, the Fed also signaled it would not raise interest rates until 2023, while pledging more support for an economy facing an uneven recovery from the Covid-19 pandemic.

According to experts, in the long term, gold is still in an uptrend. However, corrections during the uptrend are inevitable and this correction is quite deep. Last month, gold hit an all-time high. This was a strong breakout so it is not surprising that gold corrected down.

Gold may return to its long-term uptrend as previously predicted by many organizations due to escalating US-China tensions. In the coming time, the Donald Trump administration may sanction Chinese banks. The US-China conflict will slow down the recovery of the world economy after the Covid-19 pandemic. These are all factors that are beneficial for gold.