Gold price today August 28: US changes policy, gold plummets

Domestic gold price

As of 8:30 a.m. on August 28,gold priceDomestic gold prices were listed by major gold corporations at: 55.40 million VND/tael (buy) and 56.10 million VND/tael (sell), down 100,000 VND in both buying and selling prices compared to the end of the previous session.

Gold price on August 28: Sharp decrease. Photo: Internet

World gold price

As of 8:30 a.m. on August 28 (Vietnam time), the world spot gold price was at 1,930 USD/ounce (equivalent to 54.7 million VND/tael, excluding taxes and fees). The price of gold for December 2020 delivery on the Comex New York floor stood at 1,936 USD/ounce.

On the night of August 27 (Vietnam time), the world spot gold price stood at around 1,918 USD/ounce. Gold for December delivery on the Comex New York floor was at 1,934 USD/ounce.

The world gold price on the night of August 27 was about 26.1% higher (397 USD/ounce) than at the beginning of 2020. World gold converted according to the bank USD price was 54.3 million VND/tael, excluding taxes and fees, about 1.8 million VND/tael lower than the domestic gold price as of the end of the afternoon of August 27.

World gold prices plunged after US Federal Reserve Chairman Jerome Powell announced a historic change in policy goals.

Gold fell shortly after Fed Chairman Jerome Powell said the US central bank would seek to achieve an average annual inflation rate of 2%. This is a historic change from current monetary policy.

Mr. Powell said the Fed will allow periods of inflation to run hot so it can reach its 2% target on average. The Fed boss also recognized the importance of a strong labor market.

Jerome Powell's statements also mean that the Fed is willing to keep its ultra-loose monetary policy longer to benefit all Americans.

US stock indexes immediately hit new highs. And this is also the reason why gold fell sharply.

Gold also fell sharply due to the US announcing that pending home sales in July exceeded forecasts. The index of pending home sales in July increased to 122.1 points, compared to 115.3 points in June. Pending home sales increased 15.5% compared to the same period last year despite the Covid-19 pandemic.

Positive news in the fight against the Covid-19 pandemic also contributed to the decline in gold prices.

The American pharmaceutical company Moderna has just announced that its vaccine has good effects on the oldest group of patients. Accordingly, the company's test showed that the vaccine has created an immune response in people aged 56 and older. Previously, the company also announced that the Covid-19 vaccine created immunity in young people.

In the domestic gold market, at the end of the session on August 27, most gold shops increased the price of 9999 gold by 300 - 450 thousand VND in both buying and selling compared to the previous session.

At the end of the trading session on August 27, DOJI Gold and Gemstone Group listed the price of SJC gold at: 55.50 million VND/tael (buy) and 56.20 million VND/tael (sell). Saigon Jewelry Company listed SJC gold at: 55.30 million VND/tael (buy) and 56.32 million VND/tael (sell)./.