Global Gold Prices Plunge Nearly $150 Per Ounce Amid Rising Oil Prices and Interest Rate Expectations
The global gold market has been hit hard in recent days, with prices plummeting by nearly $150 per ounce on September 28th. The domestic market in Vietnam was not spared, with gold prices falling sharply across the board, hitting rock bottom.
As of the end of trading on September 28th, the price of SJC gold bars and plain gold rings dropped sharply at major retailers, including Saigon Jewelry Company (SJC), DOJI Group, PNJ Group, Bao Tin Minh Chau, and others. The prices for SJC gold bars ranged from 139.4 to 142.4 million VND/ounce, while the price of plain gold rings varied depending on the company.
The sharp decline in gold prices was attributed to several factors, including rising oil prices, exacerbated inflation concerns, and expectations that the US Federal Reserve (Fed) would continue to raise interest rates. Market sentiment has shifted back to expectations that US interest rates will remain high for a longer period, following positive economic data, solid inflation expectations, and renewed pressure from energy prices pushing government bond yields higher.
Analysts are divided on the short-term trend of gold prices, with some predicting a further decline due to lingering concerns about yields and the fragile bond market. However, others believe that gold may find support at lower price levels, citing the last time gold fell below $4,000 per ounce, strong buying pressure emerged.