World gold price drops the most in 7 years
Yesterday, gold prices lost up to 118 USD an ounce - the strongest since 2013, closing at 1,910 USD.
In the morning session this (August 12), the world spot gold price increased slightly to 1,915 USD per ounce. A series of other precious metals also plummeted yesterday. Silver price fell nearly 14% - the strongest since October 2008, to 25.24 USD per ounce. Platinum price also lost 4.7% to 940 USD. Palladium decreased 4.7% to 2,116 USD.
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| World gold price movements in recent sessions. Photo: Internet |
The US producer price index recovered faster than expected in July. US bond yields, which have supported precious metals in recent times, rose yesterday. The yield on the 10-year US government bond increased the most since June as investors expected a wave of corporate and government bond issuance.
“This is like a mini crash. The market can’t handle the Russian vaccine news. Money is flowing into stocks too,” said Edward Moya, a market analyst at OANDA. However, Moya said the outlook for gold remains optimistic.
Tom Fitzpatrick, a technical analyst at Citigroup, also said that "the fundamentals supporting gold prices have not disappeared". "I think the price will reach $2,400 an ounce by the end of this year," he said.
Michael Widmer, director of precious metals research at BofA, said the rally is only pausing and the bank's 18-month target price remains at $3,000. "The financial crisis is not gone, nor is the dollar's depreciation. Central banks are still supporting governments. I think that's a solid base for gold to reach $3,000," he explained.
As of 8:30 a.m. on August 12, the domestic gold bar price was listed by the Vietnam Gold and Gemstone Group at: VND 51.60 million/tael (buy) and VND 54.00 million/tael (sell), down VND 1.2 million for buy and down VND 2.5 million for sell compared to the end of the previous session.
