World gold prices continue to face pressure after a sharp decrease in the previous session, in the context of energy prices remaining at a high level, increasing concerns about inflation and interest rate prospects in the US.
As of 9:08 am Vietnam time, spot gold prices fell 2.48% to 4,043.78 USD/ounce. Meanwhile, August gold futures contracts fell slightly 0.14% to 4,044.45 USD/ounce. Previously, the precious metal had fallen about 1% on July 23, thereby erasing most of the increase achieved in the previous two recovery sessions.
Gold prices recently mainly fluctuated around 4,000 USD/ounce. This continues to be a noteworthy price range after the market underwent a major correction from the historical peak of nearly 5,600 USD/ounce set in January.
Pressure on gold currently comes from developments in the energy and interest rate markets. Brent oil fell 0.4% to 100.26 USD/barrel, but still maintained above the 100 USD/barrel threshold after surpassing this mark for the first time since May. WTI oil fell 0.52% to 91.71 USD/barrel. Meanwhile, the yield of US government bonds with a 2-year term increased for the sixth consecutive session on July 23.
High oil prices increase concerns about inflationary pressure, thereby affecting the monetary policy expectations of the US Federal Reserve (Fed). Maintaining high interest rates is often detrimental to gold because the precious metal does not yield yields.
Compared to the time when the US and Israel began attacks on Iran at the end of February, gold prices are currently about 25% lower. This development appeared after a multi-year upward cycle that once brought gold to a record level of nearly 5,600 USD/ounce.
On the precious metals market, silver prices fell slightly by 0.16% to 57.56 USD/ounce, after falling sharply by 3.6% in the previous session. Platinum prices fell 0.61% to 1,587.25 USD/ounce, while palladium fell 0.86% to 1,246 USD/ounce.
