If at the end of the July 24 session, the world gold price was still trading at 2,412.6 USD/ounce, then by the July 25 session, the precious metal had freely fallen from the resistance threshold of 2,400 USD/ounce, down to 2,375.5 USD/ounce. ounce.
The decline in gold prices has not stopped yet. By 5:15 a.m. on July 26, this precious metal dropped to 2,364.4 USD/ounce. Gold prices fell sharply in the context of many supporting factors, surprising many experts and investors.
“If you look at the fundamental factors, there is no reason for gold to be under such great downward pressure. Therefore, it seems that some investors are taking profits and technically, gold prices could fall further," said senior analyst Kelvin Wong of data and analysis company OANDA. Reuters news.
Explaining the decline in gold prices in the past two sessions, some experts believe that investors may be selling gold to take profits or compensate for losses in their stock portfolios.
On Wednesday session, the two US stock indexes S&P 500 and Nasdaq dropped the most in 2 years. By the morning of July 25, Asian stocks were also "on fire". At 10am (Vietnam time), the Australian market decreased by 1.2%; Japan decreased by more than 2.5%; South Korea decreased by 1.8%...
The US Department of Commerce announced on Thursday that orders for durable goods in the country fell 6.6% last month, following a 0.1% increase in May. The data was much worse than expected. expected as economists were expecting a 0.4% increase.
Investors are waiting for the US Bureau of Economic Analysis to announce the personal consumption expenditures (PCE) price index for June today (July 26). This report is especially important because core PCE is the Fed's preferred measure of inflation. Economists expect core PCE, which excludes volatile food and energy prices, to rise 0.10% month-on-month, up slightly from 0.08% in May.
Although gold prices are falling sharply, commodity analysts at Sucden Financial said they expect the price of this precious metal to increase to above 2,500 USD/ounce by the end of the third quarter of this year.
"With strong central bank buying, subdued inflation and rising market volatility, the outlook for gold remains positive," analysts said.
Analysts say the biggest factor supporting precious metal prices in the near term remains solid expectations that the US Federal Reserve (FED) will cut interest rates in September.
While US economic growth remains quite solid, decreasing inflationary pressures have created conditions for the Federal Reserve to ease interest rates. According to CME's FedWatch Tool, the market has almost completely priced in a rate cut by the end of the quarter.
While markets have already priced in the rate cut, the actual policy decision will reassure investors about the future direction of interest rates, boosting capital flows, analysts said. into sustainability".
