Gold prices stabilized again in the first trading session of the week when buying power appeared after a sharp drop to the lowest level in more than a month and a half, amid concerns about inflation causing strong fluctuations in the global bond market.
As of 4 pm Vietnam time, spot gold price is almost flat at 4,552.02 USD/ounce after falling to its lowest level since March 30 in the early session:
US gold futures for June delivery fell slightly 0.4% to 4,543 USD/ounce.
Meanwhile, oil prices continued to rise sharply to a two-week high after a drone attack caused a fire at a nuclear power plant in the UAE, according to information from officials in the country on Sunday.
The yield of 10-year US Treasury bonds continued to rise to its highest level since February 2025 in the first session of the week, while the yield of 10-year Japanese government bonds also rose to its highest level since October 1996.
Mr. Kelvin Wong - Senior Market Analyst at OANDA said that the sell-off in the bond market is reflecting long-term interest rate expectations to continue to rise, thereby increasing the opportunity cost of holding gold.
When bond yields increase, gold holding costs also increase because this precious metal does not generate profits," he said.
The market is currently increasingly appreciating the possibility that the US Federal Reserve (Fed) will continue to raise interest rates before the end of the year. According to CME Group's FedWatch tool, the probability of the Fed raising interest rates in December has now increased to about 50%.
In a report released last weekend, JPMorgan also lowered its 2026 average gold price forecast to $5,243/ounce instead of $5,708/ounce as before, citing short-term demand for precious metals weakening.
This bank believes that gold is still fluctuating in a rather sensitive technical zone when the price is maintained above the 200-day moving average around 4,340 USD/ounce but cannot overcome the resistance zone around the 50-day moving average at around 4,730 USD/ounce.
According to JPMorgan, expectations that the Fed will continue to maintain a cautious monetary policy are causing gold to temporarily lose its appeal to many investors.
On other precious metals markets, spot silver prices fell 0.5% to $75.60/ounce. Platinum prices fell slightly 0.1% to $1,970.74/ounce, while palladium fell 1.1% to $1,396.74/ounce.
