Forecasts of further US interest rate hikes caused the price of the precious metal to fall by $5 to $1,094 an ounce, retreating close to the low reached last week.

As of 8 AM (Hanoi time), the price was still fluctuating around this level, equivalent to 28.8 million VND per tael (excluding taxes, fees, and processing costs). Yesterday's domestic price closed around 32.96 - 33.09 million VND.

Although the market is focused on US monetary policy, investors say selling pressure could accelerate as Chinese stocks yesterday experienced their sharpest decline in eight years. The spot price yesterday fell to $1,092 an ounce, following five consecutive weeks of declines – the longest streak since late 2012. In contrast, August gold futures rose 1% to $1,096 an ounce.

This week, the US Federal Reserve (FED) will hold a two-day policy meeting. FED officials may signal multiple interest rate hikes this year, as the US economy strengthens. "The most likely scenario is that the FED will emphasize that the US is still on the right track. What everyone is cautious about is whether the FED will talk about a September or December rate hike," commented George Gero, precious metals strategist at RBC Capital Markets.

Gold prices fell more than 3% last week following a surprise sell-off in New York and Shanghai earlier in the week, sending prices plummeting to $1,077 an ounce – the lowest since February 2010. The US dollar yesterday lost 0.8% against a basket of major world currencies, driven by declines in US stocks and bond yields.

Reserves at the SPDR Gold Trust, the world's largest gold exchange-traded fund, also fell for the seventh consecutive session to 21.87 million ounces – the lowest level since September 2008.

According to VnExpress