World gold price drops below the 1,500 USD mark
Gold prices have fallen for three consecutive weeks and have officially fallen from the important threshold of $1,500 to $1,495/ounce. The strong increase of the USD also affects gold prices. Another reason for the decline in gold is that the home sales monitoring index of the Association of American Real Estate Companies increased more strongly than expected in August.
According to a survey by Main Street investors, gold prices are expected to increase despite expectations of falling to a three-month low.
Gold prices have now fallen below the 50-day moving average and are under great pressure from fluctuations in the USD.
What is the future of gold prices?
Of the 16 Wall Street experts surveyed this week, 8 (50%) predict gold prices will remain flat. Meanwhile, five (31%) predict gold prices will rise. Only three experts (19%) predict gold prices will fall.
Of the 855 people surveyed online on Main Street, 479 (56%) predicted gold prices would increase, 222 people (26%) predicted gold would decrease. The remaining 154 people (18%) see gold moving sideways.
Although some gold analysts have been more cautious, they still maintain their view on gold prices in the long term.
Ole Hansen, an analyst, said that although he predicted gold would fall next week, it was just a weak correction in a strong uptrend.
I think the gold market is still in an uptrend. However, gold prices will adjust in some sessions to low levels. I am not surprised to see gold prices plummet to $1,450/ounce in the near future, said Ole.
George Gero, CEO of RBC Wealth Management, said he expects the time when gold plummets is when investors start jumping in to buy to catch the bottom. This will be a factor supporting gold prices to increase. However, the current strong USD price is a big wind for gold and this is not easy to change in the short term.
The world needs a safe haven and right now it is the US dollar. However, because US bond yields are very low, investors will not take long to see gold as their last safe haven, said George Gero.
After gold fell below the 50-day average, analysts are concerned that gold prices will continue to break through the support level of 1,470 USD/ounce.
After the shocking price increase last summer, now is the time for gold prices to check the supporting fluctuations.
I see any price reduction as a healthy adjustment, Kitco experts said.
Although gold prices last week decreased by 1%, some analysts are still optimistic about the prospect of gold prices increasing in the coming time when the market still has many fluctuations.
There are many factors of instability in the world that can be the cause of supporting gold prices, from Brexit to the scandal of impeachment of the US president, and the US-China trade dispute.
The world spot gold price is currently at 1495.90 - 1496.90 USD/ounce. Meanwhile, December gold futures fell $13.2 to $1,502.10 an ounce.
Domestic gold prices are currently listed at 41.70 million VND/tael (buy) and 42.02 million VND/tael (sell).
