Reasons for the continuous decline in gold prices last night

World gold prices continued to plummet sharply in last night's trading session when a series of unfavorable factors appeared, from positive US economic data, expectations of high interest rates to technical selling pressure in the market.

At 0:06 AM on April 29, 2026 (Vietnam time), world gold prices were listed around the threshold of 4,589 USD/ounce, a sharp decrease compared to previous sessions.

The biggest reason for the weakening of gold is the US consumer confidence report exceeding expectations. According to The Conference Board, the April consumer confidence index rose to 92.8 points, higher than analysts' forecast of 89 points and higher than the previous level of 91.2 points.

This figure shows that Americans are still quite optimistic about economic prospects, especially the labor and income markets. When the economy maintains stability, the US Federal Reserve (Fed) will have more grounds to not rush to cut interest rates. This is unfavorable information for gold because precious metals often benefit when interest rates fall.

The market is currently focusing on following the Federal Reserve's monetary policy meeting this week. Most investors believe that the Fed will continue to keep interest rates unchanged. Fed Chairman Jerome Powell is expected to deliver a speech after the meeting, thereby signaling the direction of policy in the coming time.

Expectations that interest rates will remain high longer have put great pressure on gold, because when interest rates increase or remain high, investors tend to shift cash flow to bonds or other profitable assets.

In addition, the yield on 10-year US Treasury bonds increased to around 4.35%, continuing to reduce the attractiveness of gold. The USD remaining at a high level also makes gold more expensive for buyers holding other currencies.

In addition to fundamental factors, the gold market is also affected by bad technical signals. The fact that prices continuously broke important support levels has activated strong selling pressure from short-term speculators and trend-following trading funds. Gold futures for June delivery at one point fell more than 100 USD/ounce during the session.

In the short term, gold prices are forecast to remain volatile as the market waits for the results of the Federal Reserve meeting. If the Fed continues to maintain a tough stance on interest rates, gold may face further downward pressure.