Can global gold prices escape the 'US election curse'?

Gold price fell by half a million VND/tael

Late today, October 4, world gold prices rose slightly, to 2,739.3 USD/84.1 ounce. Converted according to the exchange rate indicated at the bank, the global price of gold is equivalent to 300 million VND/tael.

Meanwhile, the price of SJC gold bars decreased by 500,000 VND today, to 89 million VND/tael. The purchase price is 30 million VND/tael.

Thus, the price of SJC gold bars has decreased by a total of 1 million VND/tael in recent days.

At the same time, the sales price of 9999 gold rings sold by the SJC company also decreased by 88,7 million VND/tael, to 87 million VND/tael, for a purchase of 87 million VND/tael .

At Bao Tin Minh Chau Company, the selling price of gold rings decreased by 200,000 VND/tael, to 88,78 million VND/tael, for a purchase of 87,78 million VND/tael.

Likewise, DOJI company also reduced the sale price of 9999 gold rings to 88.8 million VND/tael, purchasing 87.6 million VND/tael.

Compared with the world converted gold price, the domestic gold price is 4.9 million VND/tael higher. This gap tends to widen due to the sharp drop in global gold prices. Meanwhile, the price of gold rings is 4.6 million VND/tael higher than the world converted gold price.

After the general election US President: Will global gold prices fall?

Expert Tran Duy Phuong said that this week, two events had a strong impact on gold and the global financial market: the US presidential election and the US Federal Reserve (Fed) meeting. The Fed's decision on interest rates will be taken on Wednesday, November 2, the day after the US presidential election.

Currently, the market believes that it is difficult for the Fed to cut interest rates sharply because inflation is likely to rise.

The possibility that the Fed will only cut interest rates by 0.25% and make cautious statements about the direction of interest rates is detrimental to gold prices.

Regarding the US presidential election, if Donald Trump is elected, gold and even cryptocurrencies will rise sharply. The reason is that Donald Trump wants a low interest rate environment, which is a catalyst for gold prices. Recently, the prices of gold and cryptocurrencies have risen sharply, reflecting investors' expectations regarding the election results. On the contrary, if Ms. Harris is elected, gold will decline sharply.

However, the reality is that in the last five US presidential elections, the price of gold has always increased by $5-40/ounce on election day and then experienced a series of declines for several consecutive months. Therefore, at the start of the week, it is possible that gold prices will recover before falling.

But the overall trend in global gold prices remains upward as many central banks around the world have entered a cycle of monetary policy easing. The low interest rate environment will be the factor that pushes gold prices higher.