The Asian spot gold price listed on Kitco.com fell by 1.2 USD to 1,755.9 USD/ounce. In the New York market, the closing spot price was 1,753.8 USD/ounce, down 3.3 USD.
Many analysts have pointed out 3 main reasons for gold's decline.
Firstly, the skyrocketing USD in recent times has put pressure on gold prices.
Second, investor sentiment is focusing on the possibility of the Fed starting to tighten its asset purchase program in November and will be completed by mid-2022.
Third is the rapid increase in yields on 10-year Treasury bonds, reaching 1.612%. Rising bond yields have raised concerns about rising inflation.
In addition, the US employment report just released last week was lower than economic experts predicted. The US economy added only 194,000 new jobs last month, while experts have forecast 500,000 new jobs.
The economic recovery is quite gloomy along with the number of new jobs increasing to be low, gold prices continue to be sold off strongly.
The dollar has become a safe haven as bond yields increase. However, analysts do not believe that the increase in the USD is the only reason why gold has been under recent downward pressure.
The tightening of monetary policy by major world central banks has a negative impact on gold prices because it triggers the increase in government bond yields.
In addition, the strong cash flow into the cryptocurrency market is also a reason for strong gold sales. Bitcoin price increased sharply by 2,705 USD today, equivalent to an increase of 4. 90% to 57,885 USD.
As Bitcoin trends to recover, gold prices fall.
In early 2021, gold futures were traded at approximately 1920 USD/ounce and Bitcoin was worth 40,000 USD.
Domestic gold price today:
SJC gold price is at 57,250 VND - 57,970 VND (buy - sell)
DOJI gold price is at 57.0 VND - 57.850 VND (buy - sell)
The world gold price today is trading at 1,755.9 USD/ounce.
