Gold price closed the week down sharply

On November 10, the gold market ended the week with the sharpest decline since May. The world gold price reached a record of 2,801.8 USD/ounce last week. After many downward adjustments, the price of gold futures for December decreased by 1.98% compared to the end of last week.

At the end of the week, the world gold price traded at 2,683 USD/ounce. The December 2024 gold futures price traded at 2,694 USD/ounce.

According to experts, the Federal Reserve (Fed) cutting interest rates by 25 basis points, combined with the US presidential election and a stronger USD,... are the main factors affecting gold prices.

This week, Republican candidate Donald Trump won the election, becoming the next president of the United States. If nothing changes, Donald Trump will officially be sworn in as President of the United States in early 2025.

Shortly after, the Fed cut interest rates by 0.25 percentage points, further easing monetary policy as inflation in the world's largest economy continued to cool. Following the Fed's decision, a series of other major central banks also made moves to adjust interest rates.

The stronger USD was also the main factor causing gold prices to fall this week. The USD increased by 0.64% this week. The US Dollar Index (DXY), which measures the greenback's fluctuations against 6 major currencies (EUR, JPY, GBP, CAD, SEK, CHF) stood at 104.833 points.

In the immediate aftermath of the election, the US deficit is in the spotlight more than ever, with international traders, institutions and central banks all looking to the US to see what the Trump administration will do to impact the debt, said Joe Cavatoni, senior market strategist at the World Gold Council.

Global gold demand is being affected by the rate of depreciation of the US dollar, Cavatoni said. Gold fell sharply as soon as the world knew that Trump would be the next president.

The domestic gold market also fluctuated strongly according to world developments. On November 9, the price of 9999 gold bars at SJC was VND82 million/tael (buy) and VND85.8 million/tael (sell). Doji listed it at VND82 million/tael (buy) and VND85.8 million/tael (sell).

SJC listed the price of gold rings of type 1-5 at only 82-84.8 million VND/tael (buy - sell). At Doji, the buying - selling price of gold rings of type 1-5 is only 83.35-85.15 million VND/tael.

Gold Price Forecast

Alex Kuptsikevich, senior market analyst at FxPro, said gold prices lost 3% on the day of the US presidential election results. Overall, the loss from the peak in late October to the recent low is more than 5%.

According to Colin Cieszynski, strategist at SIA Wealth Management, what happens to gold prices in the year 2000 scenario. After a new US President, it doesn't matter who wins, as long as there is a certain risk to the market. Basically, gold prices are still trading in the range of 2,600-2,780 USD/ounce.

“I don’t think there’s going to be a big correction in gold,” Cieszynski said. He said it’s unlikely that gold will return to $2,000 an ounce, but it could test $2,500 and continue to fall next week.