World gold price drops sharply

At the opening of the morning trading session on July 25, the world spot gold price fell more than 1%, currently at 2,371 USD per ounce. The market went down as investors sold to take profits before the US announced important economic data, affecting the prospect of interest rate cuts this year.

"When you look at the fundamentals, there is no one component that is weighing on gold. So it seems to be profit-taking. From a technical perspective, prices could go lower," said Kelvin Wong, senior market analyst at OANDA. Reuters.

The US will release second quarter GDP figures today. On July 26, the market will receive a report on the Personal Expenditures Price Index (PCE), the Federal Reserve's preferred inflation measure. These figures could influence the Fed's plans to cut interest rates.

Investors are now expecting the Fed to cut interest rates at its September meeting. A low interest rate environment would benefit gold, as the precious metal does not pay interest.

If the PCE shows slowing U.S. inflation and the likelihood of a September Fed rate cut increases, gold prices will rise again, Wong predicted. A recent Reuters survey showed the precious metal is expected to hit new highs in the coming months.

The World Gold Council also stated in a recent report: "Uncertainty related to the US presidential election and geopolitical threats globally will impact the macro environment. Investors looking to hedge against risks will turn to gold."

While gold rose, other precious metals fell this morning. Silver is down 2.8% at $28.20 an ounce. Platinum is down 0.8% at $940 an ounce. Palladium closed at $918, down 1.5%.

Domestically, gold prices are currently flat or slightly down. Converted to Vietcombank exchange rate, world gold prices are down to the equivalent of 72.8 million VND per tael.

The State Bank still maintains the market intervention price, accordingly the listed price of gold bars at gold trading units remains "same price" at 77.5 - 79.5 million VND per tael.

The price of 24K plain gold rings has decreased by several hundred thousand dong by 10 o'clock. The price of SJC gold has decreased by 200,000 dong per tael, plain rings are 75.6 - 77 million dong, DOJI listed plain rings at 75.75 - 77 million dong. Accordingly, gold bars are 6.7 million dong higher, while plain rings are 4 million dong higher than the world price.