Gold prices retreat

By Dat Nguyen   March 20, 2023 | 09:08 pm PT
Gold prices retreat
A person holds a gold bar at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
SJC gold price fell 0.22% to VND67.45 million ($2,859.69) per tael Tuesday morning.

Gold ring dropped 0.09% to VND55.85 million per tael. A tael equals 37.5 grams or 1.2 ounces.

Globally gold prices edged higher on Tuesday, with investors looking forward to the Federal Reserve policy meeting as expectations grew that the U.S. central bank would slow its monetary policy tightening given the upheaval in the banking sector, Reuters reported.

Spot gold was up 0.2% at $1,982.59 per ounce, as of 0317 GMT. U.S. gold futures also rose 0.2% to $1,986.30.

According to the CME FedWatch tool, markets are pricing in a 26.2% chance that the Fed will stand pat at the end of its March 21-22 meeting, with a 73.8% chance of a 25 basis-point (bps) hike.

"Gold is trading around the $1,980 level and well within yesterday's range, which was clearly a game of two halves," said Matt Simpson, a senior market analyst at City Index.

"A pause (in rate hikes) could send gold back above $2,000 initially, but for it to hold onto those gains, we'd need to see a lower dot plot and dovish press conference... they're more likely to hike by 25 bps and peddle a 'data dependent' angle."

go to top