Gold price today, July 23, dropped sharply below 40 million/tael
Gold prices today, July 23, on the world market fell from a 6-year peak after the US signaled it would cautiously reduce interest rates.
As of early morning on July 23 (Vietnam time), the world spot gold price stood at 1,425 USD/ounce.
The price of gold for August 2019 delivery on the Comex New York floor stood at $1,428/ounce.
Today's gold price is 9.4% higher (122.5 USD/ounce) than at the beginning of 2018. World gold converted to USD bank price is 39.5 million VND/tael, excluding tax and fees, 200,000 VND lower than domestic gold.
World gold prices fell quite rapidly from a six-year peak after the US Federal Reserve (Fed) signaled that it would cautiously cut interest rates. However, the upward trend is still a signal according to technical analysis.
According to a report from the Fed, many officials of the US monetary policy-making body are leaning towards a 25-basis-point interest rate cut by the end of July, lower than the market's expectation of 50 basis points.
Meanwhile, according to CME, the market is pricing in a 22.5% chance of a 50 basis point cut by the Fed, much lower than the previous 40%.
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| Gold prices fell from a six-year high today. |
This news immediately pulled the USD back a bit and pulled gold prices down from a six-year peak, above the threshold of 1,450 USD/ounce.
Gold also fell due to profit-taking after the commodity increased more than 3% in the two mid-week sessions.However, on the contrary, the USD is still under downward pressure while gold is still likely to increase again.
US President Donald Trump has just tweeted calling on the Fed to end its tight monetary policy. Mr. Trump said that the Fed should stop its “mistakes” in implementing tightening measures.
Previously, Mr. Trump had repeatedly criticized the Fed for raising interest rates in previous years along with efforts to reduce bond holdings.
Gold prices were also supported by news that tensions in the Middle East were rising again after Iran seized two oil tankers in the Strait of Hormuz.
Gold is also expected to remain high as central banks continue to increase purchases. By the end of May, these banks had net purchased nearly 250 tons of gold, equivalent to 10 billion USD.
A currency war between countries has also led many to believe that gold prices will continue to rise. South Korea is the next country to decide to lower interest rates (to 1.5%) to support economic growth amid escalating trade tensions with Japan.
In a Kitco survey, nearly 70% said gold would continue to rise in the new week.
In the domestic gold market, at the end of the session on July 22, most gold shops reduced the price of domestic 9999 gold by about 100,000 VND in both buying and selling prices compared to the previous session.
As of the end of the trading session on July 22, DOJI Gold and Gemstone Group listed the price of SJC gold at: 39.45 million VND/tael (buy) and 39.90 million VND/tael (sell). Saigon Jewelry Company listed SJC gold at: 39.50 million VND/tael (buy) and 39.77 million VND/tael (sell).
