Gold Prices Plummet Amid US Interest Rate Hike
Gold prices plummeted following the US Federal Reserve's decision to raise interest rates to 3.75-4% per year, marking the first time in three years that interest rates have been raised.
The price of gold on the world market fell sharply from $4,360 per ounce to $4,235, but domestic gold prices in Vietnam moved in the opposite direction, with SJC gold bars seeing a sharp drop of 700,000 VND/ounce at the beginning of the day and remaining unchanged throughout the day.
Economist Nguyen Tri Hieu believes that the sharp drop in world gold prices is an immediate reaction to the interest rate hike, but whether this trend will last depends on many other factors, including the effectiveness of the Fed's measure and its impact on inflation.
Hieu also pointed out that the current geopolitical situation continues to support the rise in gold prices, citing ongoing conflicts in the Middle East and rising oil prices as threats to global economic stability.