Gold price continued to fall deeply to the lowest price range within the past 3 weeks.
At 8:45 am on January 28 in Vietnam time, the world gold price stood at 1,799 USD/ounce, down to 17 USD/ounce compared to the same hour last morning. This is also the lowest price of precious metal in the past 3 weeks.
The precious metal price penetrated the key support level of $ 1,800 after the dollar rose to a 1.5-year high amid the US Federal Reserve's decision to keep interest rates unchanged. Gold also sold off after Fed Chairman Jerome Powell said the agency "may" raise interest rates next month.
Besides, the US GDP report for the fourth quarter has just been released, showing an increase of 6.9% compared to the expectation of a growth of 5.5%. The closely watched inflation index, the personal consumption expenditures (PCE) index, reached a hot rate of 6.5%/year in the fourth quarter. US weekly jobless claims data were also upbeat. These data helped revive the USD index, which helped push the gold market to lows.
Over the past few days, gold has benefited from weakness in the equity markets, cementing its status as a safe-haven, but the Fed's comments affected both gold and equity markets. This shows that the economic outlook as presented by the Fed is much more important for the gold market.
Technically, the February gold futures bulls have the overall near-term technical advantage but are fading later this week. The 5-week uptrend on the daily liquidity chart is in certain 'danger'.
In the domestic market, at the opening session of this morning, Saigon Jewelry Company listed the price of SJC gold buying and selling at 61.9-62.62 million VND/tael, down 50,000 VND/tael. buying in the afternoon and increased by 50,000 dong/quantity of selling compared to yesterday's closing.
