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Gold price on May 23, 2022: 'Shocked' forecast of 28 million dong/tael

 World gold price in the morning of 23.5 fluctuated strongly, in contrast, domestic precious metal only increased slightly. A "shocking" forecast, the gold price will drop to around 28 million VND/tael in the next few years.

The price of SJC gold bar on the morning of May 23 increased by 50,000 - 100,000 VND/tael, Eximbank (HM: EIB ) bought in to 68.8 million dong/tael and sold 69.8 million dong/tael; Mi Hong Jewelry Company bought 69.3 million dong/tael and sold 69.9 million dong/tael… The price growth rate of domestic gold was lower than that of the international market, making the gap between SJC gold higher than the world. down to 18.1 million VND/tael.

SJC gold price is 18.1 million dong/tael higher than the world price. Ngoc Thang

Precious metals in the international market fluctuated strongly in the first trading day of the week. Opening at the beginning of the day, gold price jumped from 1,847 USD/ounce to 1,842 USD/ounce and then rose sharply to 1,860.5 USD/ounce. The "wave" of gold did not stop when it suddenly dropped by 10 USD/ounce then, down to 1.85 USD/ounce. It is difficult for gold prices to break through in the current context when US dollar interest rates increase to curb inflation. The results of a Reuters survey of 89 economists on May 12-18 forecast average US inflation this year to stay at 7.1% and above the Federal Reserve's 2% target. The US Federal Reserve (Fed) at least until 2025. The Fed will raise interest rates by 0.5% from the current 0.75 - 1% at its meeting in June. Most economists think interest rates will come in. around 2.5 - 2.75% or higher by the end of the year, six months earlier than forecast in the previous survey and almost in line with market expectations of a 2.75 - 3% interest rate range .

According to Harry Dent, President and Founder of HS Dent, the gold market has peaked and will continue to be in a bear market until 2024 and there is nothing the Fed can do about it. The stock market will drop about 40% in a few months as the Fed's money printing has sustained the economy so far. The economy is about to enter a recession, long-term US Treasuries will be the best performing asset and the price of gold will fall. In the next one or two years, the price of gold will fall to 900-1000 USD/ounce (equivalent to about 28 million VND/tael, based on current USD prices ).


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