Gold price plummeting: lowest level in five weeks!

Gold price plummeting: lowest level in five weeks!

On May 16, 2025, gold prices fell to their lowest level in the last five weeks. This development can be attributed, among other things, to the agreement between the USA and China, which encouraged investors to take profits. Gold prices quoted at 4:30 a.m. (Vietnamese time) at various stores in Vietnam:

• SJC-Goldbarren: 115,5-118,2 Millionen VND/Tael (Kauf – Verkauf)
• Phu Quy: 114,5-118,2 Millionen VND/Tael (Kauf – Verkauf)
• Mi Hong Jewelry Company: 115,5-117,5 Millionen VND/Tael (Kauf – Verkauf)

Compared to previous days, prices decreased by VND 2.5 million/tael when buying and VND 1.8 million/tael when selling. In addition, the latest gold price list in Hanoi showed that SJC, DOJI Group and Bao Tin Minh Chau were all quoted at VND115.5 million (buy) and VND118.2 million (sell). The global gold price at that time was USD 3,209.36/ounce, up 0.91% compared to the previous day.

Market developments and influencing factors

The international gold price is currently the equivalent of around 102.5 million VND/tael, the SJC gold bar is therefore 15.7 million VND/tael higher. A 0.1% drop in the U.S. dollar index made gold cheaper for buyers with other currencies. The situation is influenced by the upcoming important US inflation data and possible interest rate cuts by the US Federal Reserve (Fed). This data could be crucial for the development of the gold price in the coming days.

How on Gold reporter Reportedly, gold prices are in a consolidation mode as they fluctuate around 9% or $230 compared to their peak in October 2024. The price of gold in US futures trading is currently five percent below the record high of October 30, 2024, indicating increased volatility.

Demand and Inventories

Gold inventories in COMEX vaults fell by 100,000 ounces to 17.84 million ounces. In turn, the net long position of the “major speculators” increased by 3.75% to 259,736 contracts, while the net short position of the “commercials” increased by 5% to 286,275 contracts. This indicates optimistic trading, but there is still a lack of clear impetus for a definitive trend direction. Meanwhile, demand from China remains strong, driving an increase in the Shanghai premium from $6 to $25.

The outlook for the gold market will be determined by the upcoming US inflation data and the European Central Bank's interest rate decision next week. Investors are excited to see what new stimulus will come from the USA and China and how this will affect the price of gold.