Gold prices hit rock bottom

Gold prices today, September 20, have been fluctuating. However, the downward trend of gold prices has not improved. Gold prices are still at their lowest level in the past 3 weeks as investors still choose to sell to ensure safety before the sensitive time of US and Japanese policies.

Illustration from the Internet

On the Asian market, as of 5:10 a.m. on September 20 (Vietnam time), the spot gold price increased by 2.8 USD/ounce to 1,312.8 USD/ounce after a session under continuous downward pressure on the US and European markets. Yesterday afternoon and night, on the London and Comex New York floors, the gold price decreased from over 1,318 USD/ounce to 1,310 USD/ounce.

However, the price of gold for December delivery on the Comex New York floor increased by 7.1 USD to 1,317.2 USD/ounce.

Gold prices are currently 23.6% higher (+251 USD/ounce) than at the beginning of the year.

The converted world gold price is currently 35.6 million VND/tael, excluding taxes and fees.

The world gold price in the European and American markets continued to decrease last afternoon and night because investors did not stop selling before the sensitive time of the US and Japanese monetary policies. The Federal Open Market Committee (FOMC) of the US Federal Reserve (Fed) will start a 2-day meeting tonight and end tomorrow night (Vietnam time).

After this meeting, the Fed will decide whether to raise interest rates or not and send signals about monetary policy in the coming time.

A series of recent economic data are supporting the possibility that the US will not raise interest rates (close to the all-time record low: 0.25-0.5% currently) at this September meeting, but instead may do so later this year or early next year.

Meanwhile, the Bank of Japan (BOJ) is still arguing fiercely about policy until the important meeting, which almost coincides with the Fed meeting. Observers believe that the BOJ will likely continue Japan's unprecedented easing policy. Currently, Japan's interest rates are in negative territory and may fall further due to the decade-long economic stagnation that shows no signs of recovery.

Normally, the impact of Fed meetings on the gold market is much larger than the moves of other central banks in the world. However, this time may be different. The BOJ meeting is expected to have a stronger impact on the markets, including gold, because of its unpredictability. The results of the BOJ meeting will be announced on Wednesday night (Vietnam time).

Technical analysis shows that the short-term uptrend is back but weak. The nearest resistance is the intraday high of $1,321.80/ounce and then $1,325/ounce. The nearest support is the low of last week: $1,309.20/ounce and then the low of September: $1,305.50/ounce. The spot gold price is currently at $1,313/ounce.

Illustration

In the domestic gold market, in yesterday's trading session, September 19, gold prices increased slightly by 30-50 thousand VND/tael to commonly: 36.13 million VND/tael (buy) and 36.20 million VND/tael (sell).

Specifically, as of the end of the trading session on September 19, DOJI Gold and Gemstone Group listed the price of SJC gold at: 36.13 million VND/tael (buy) and 36.19 million VND/tael (sell). Saigon Jewelry Company listed SJC gold at: 36.00 million VND/tael (buy) and 36.27 million VND/tael (sell). Bao Tin Minh Chau Gold and Gemstone Company listed the price of SJC gold at: 36.14 million VND/tael (buy) and 36.18 million VND/tael (sell).

According to Doji, the demand for holding gold by investors at this time seems to be decreasing due to concerns about risks and not setting profit goals like the times when there were big gold waves like before. Therefore, the domestic gold market has a rather slow flow and mainly focuses on small retail transactions with the need to buy gold.

According to Vietnamnet