Central banks not easing as expected could cause the market to continue the downtrend that has lasted for the past few sessions.

Illustration from the Internet.

Following the announcement of the US Federal Reserve (FED) that it may raise interest rates in December, the world gold price has fallen for three consecutive sessions, closing last week at $1,141 an ounce. According to a survey by Kitco News, most analysts, bank directors, and investors believe that the downward trend will continue this week.

This morning, at 8am (Hanoi time), each ounce continued to lose 2 USD, down to 1,139 USD. Thus, the world gold price is now equivalent to 30.68 million VND per tael (excluding tax, fees, and processing). The domestic gold bar buying and selling price closed last week around 33.65-33.79 million VND.

Phil Streible, a strategist at RJO Futures, also agreed that the Fed's policy stance is still the main impact on gold. "Prices will go lower. It seems that investors are focused on the December meeting, and they have started selling when they realize that prices cannot go up to $1,200," he predicted. "Last week, central bank decisions were not as expected by investors. The Fed took a tighter stance than expected, the Bank of Japan did not increase stimulus as expected, and speculation about the European Central Bank's easing policy has also decreased somewhat. This suggests that central banks may not be enthusiastic about stimulus, putting pressure on gold prices and pushing currencies higher," commented Colin Cieszynski, senior market strategist at CMC Markets.

Still, some analysts remain optimistic, saying other factors will support the precious metal. Ole Hansen, head of commodity strategy at Saxo Bank, said prices will rise despite the risks from the jobs report due later in the week.

Technically, most analysts see the price still vulnerable to a drop to the $1,125-$1,135 an ounce range this week, but the precious metal has bottomed and could bounce back.

According to VN Express