Gold price today April 11, plummeted after the US announced news

Domestic gold price

At the end of the trading session on April 10, the domestic 9999 gold price was listed by SJC and DOJI Gold and Gemstone Group in the following order of buying and selling:

SJC Hanoi: 82,400,000 VND/tael - 84,420,000 VND/tael
DOJI Hanoi: 82,300,000 VND/tael - 84,300,000 VND/tael
SJC Ho Chi Minh City: 82,400,000 VND/tael - 84,400,000 VND/tael
DOJI Ho Chi Minh City: 82,300,000 VND/tael - 84,300,000 VND/tael

International gold price

At 7:35 p.m. on April 10 (Vietnam time), the spot gold price on the world market today was at 2,230 USD/ounce, down about 20 USD compared to 7:30 p.m. Gold for June 2024 delivery on the Comex New York floor was at 2,349 USD/ounce.

The world gold price on the night of April 10 was about 12.9% higher (267 USD/ounce) than at the end of 2023. The world gold price converted to the bank USD price was 71.2 million VND/tael, including taxes and fees, about 13.1 million VND/tael lower than the domestic gold price as of the end of the afternoon session on April 10.

The world gold price plummeted by 20 USD within half a minute after the US announced inflation exceeding market expectations. Inflation in March increased by 0.4%, higher than the predicted 0.3%. This puts the US Federal Reserve (Fed) in a "dilemma" in planning monetary policy.

The US Department of Labor said the consumer price index (CPI) rose 0.4%, bringing the 12-month inflation rate to 3.5%. Economists surveyed by Dow Jones had expected increases of 0.3% and 3.4%, respectively.

The 0.4% increase in March shows that inflation remains persistently high and may cause the Fed to continue to delay decisions to lower interest rates to ensure that the US economy does not fall into recession and grows again in the context of a difficult world economy.

Previously, signals showed that the Fed would almost certainly not raise interest rates at its May meeting and there was only a 50% chance of a rate hike at its June 12 meeting.

Gold prices fell sharply after the US dollar surged.

The DXY index - measuring the greenback's fluctuations against six major currencies - at 7:50 p.m. on April 10 in the US market jumped to nearly 104.8 points, compared to 104.1 points before 7:30 p.m. the same day.

Gold Price Forecast

A stronger US dollar has pushed gold prices down.

However, gold still attracts special attention from international investors.

Immediately after falling to 2,330 USD/ounce, just 20 minutes later gold rose back to near the old price, reaching 2,345 USD/ounce.

Investors seem unperturbed by a much stronger dollar and a Fed holdout. Gold remains a safe haven from high inflation and global economic uncertainty and instability.

Earlier, Phillip Streible, an economist at Blue Line Futures, said that the buying momentum in gold will continue unless inflation is much hotter than expected. A more stable report could push gold prices to $2,400, or even $2,500.