Gold price today December 20, 2024: Gold price plummets due to Fed's decision

Domestic gold price today December 20, 2024

At the time of survey at 4:30 a.m. on December 19, 2024, domestic gold prices on the trading floors of a number of companies simultaneously decreased sharply.

The price of SJC gold was listed by Saigon Jewelry Company (SJC) at 82.1 million VND/tael for buying and 84.1 million VND/tael for selling, down 1 million VND/tael for both buying and selling compared to the previous trading session. The difference between the buying price and selling price is 2.0 million VND.

The price of 9999 gold today is listed by DOJI at 83.05 million VND/tael for buying and 84.05 million VND/tael for selling. Compared to yesterday, the price of 9999 gold rings decreased by 650 thousand VND/tael in both buying and selling directions.

At Mi Hong Jewelry Company, the price of Mi Hong gold at the time of survey was listed at 83.3-84.1 million VND/tael for buying and selling. Compared to yesterday, the price of SJC gold bars also decreased by 1 million VND/tael for both buying and selling.

SJC gold price at Bao Tin Minh Chau Company Limited is also traded by businesses at 82.1-84.1 million VND/tael (buying - selling). Compared to yesterday, the gold price has decreased sharply by 1 million VND/tael in both buying and selling directions. Meanwhile, at Bao Tin Manh Hai, it is also being traded at 82.1-84.1 million VND/tael (buying - selling). Compared to yesterday, the gold price has decreased by 500 thousand VND/tael in both buying and selling directions.

The latest gold price list today, December 20, 2024 is as follows:

World gold price today December 20, 2024 and world gold price fluctuation chart in the past 24 hours

According to Kitco, the world gold price recorded at 5:00 a.m. today, Vietnam time, was 2,595.99 USD/Ounce. Today's gold price decreased by 47.7 USD/Ounce compared to yesterday. Converted according to the USD exchange rate, on the free market (25,750 VND/USD), the world gold price is about 81.45 million VND/tael (excluding taxes and fees). Thus, the price of SJC gold bars is 2.65 million VND/tael higher than the international gold price.

Gold prices on the world market are falling, the main reason is that the US Federal Reserve (Fed) has just decided to cut interest rates by another 0.25%.

Although this move was expected, the Fed also expressed its view that it would reduce interest rates at a slower pace in 2025. This made investors feel less optimistic about the gold price outlook.

According to experts, the impact of the Fed's recent interest rate cuts has been reflected in the gold price before. At this time, investors want to know how much the Fed will cut interest rates in 2025. However, the Fed's slow plan has not met market expectations, leading to selling pressure and falling gold prices.

The US Federal Reserve (Fed) is expected to keep interest rates unchanged at its meeting in January 2025. According to expert Ajay Kedia at Kedia Commodities in Mumbai, interest rate cuts are usually beneficial for gold prices, because when interest rates are low, savings deposits are no longer attractive and people often look to gold as a safer investment channel.

According to the latest interest rate forecast of the US Federal Reserve (Fed), in 2025, the Fed only expects to cut interest rates twice, less than the 4 cuts expected in the previous forecast (September).

Going further, in 2026 and 2027, the Fed estimates that there will be only a few rate cuts each year (2 times in 2026 and 1 time in 2027). Each cut will only stop at 0.25 percentage points (ie 0.25%). In addition, the Fed also raised the “neutral interest rate” – the interest rate that they believe neither stimulates nor inhibits the economy – to about 3%. This figure is 0.1 percentage points higher than the forecast made in September and shows a gradual upward trend this year.

Investors are now awaiting a series of important data from the US, including figures on Gross Domestic Product (GDP), initial jobless claims, and especially data on core personal consumption expenditures (PCE) – an index that the Fed considers an important measure of inflation. This information will be announced in the next few days (PCE data will be released on December 20).

If the upcoming US PCE data is as expected by the market, meaning it does not cause any surprises, gold prices may not fluctuate too much, said Kelvin Wong, senior analyst at financial firm OANDA in the Asia-Pacific region.

In addition, after the announcement from the Fed in the early morning of December 19 (Vietnam time), the price of Bitcoin - the world's largest cryptocurrency - dropped sharply by more than 5,000 USD/BTC in just 24 hours and fell below the important mark of 100,000 USD. This decrease of more than 5% shows that many investors are worried and selling off assets because they are uncertain about the upcoming policy of the Fed.

Not only Bitcoin, the entire cryptocurrency market also shook violently. Other coins such as Solana fell more than 7%, Dogecoin fell more than 9%, Chainlink fell more than 12%, and XRP fell about 10%. The situation shows the concern over the market, as investors are still waiting for the next economic data to determine the future direction.

Gold price forecast

In the short term, gold prices may continue to struggle due to the strong US dollar and high bond yields. If prices fail to hold the important support level around $2,600/ounce, prices could fall to around $2,450/ounce.

Technically, gold prices still have a good medium-term foundation, but are currently weakening. Bulls want to push prices above the resistance level of $2,761.30/ounce, while the current important support level is at $2,629.70/ounce.

According to Mr. Tai Wong, an independent trader, the market is in “shock” when the Fed (US Federal Reserve) only expects to cut interest rates twice next year. Although the price of gold is falling, he believes that there is still a possibility that the price will hold above $2,600/ounce.

Looking ahead, Bank of America predicts that if the global economy remains unstable and inflation continues to rise, gold prices could hit $3,000 an ounce in the second half of 2025.

Trading Economics believes that gold prices could be at $2,483/ounce by the end of this year.

Expert Nicky Shiels from MKS PAMP (Switzerland) predicts gold prices will fluctuate between $2,450 and $2,950 per ounce in 2025.

Sources such as Bloomberg said that although gold prices have risen this year, uncertainty about future monetary policy could put pressure on prices. Investors are paying close attention to signals from the Fed. If the Fed shows a willingness to maintain low interest rates for longer, that would be a factor supporting gold prices.

CNBC points out that despite the Fed’s rate cut, gold prices are unlikely to rise as the US dollar strengthens and investors sell to lock in profits. According to IG strategist Yeap Jun Rong, if the Fed clearly shows a trend of keeping interest rates stable through 2025, gold prices could continue to fall.

According to Kitco, market sentiment remains cautious. If gold fails to hold the $2,600/ounce threshold, it could fall further. At the same time, the rising US dollar and high bond yields are also contributing to the pressure that makes it difficult for gold prices to recover.