Editor’s Note
This article reports on a significant intraday drop in international gold prices, highlighting the market’s volatility. All figures are sourced from real-time trading data as of the morning of February 5th.
On the morning of February 5th at 5:00 AM (Vietnam time), the spot gold price in the international market fluctuated around $4,966 per ounce, a drop of approximately $126 compared to the peak of $5,092 per ounce recorded during the previous night’s trading session.
By around 6 AM this morning, the global gold price had rebounded to $5,004 per ounce, equivalent to 157.9 million VND per tael.
This decline is one of the most severe drops in the gold market in recent times. The sharp fall and subsequent rapid rebound in gold prices were driven by pressure from short-term futures traders and hedge funds, leading many investors to begin profit-taking and causing a significant increase in supply.
On the other hand, a slight recovery in the US Dollar Index (DXY) also put pressure on gold prices, as a strong “greenback” typically makes this precious metal less attractive to investors holding other currencies.
Another important piece of information is that Bloomberg reported that major gold investment funds in China—the world’s most important consumer and investment market—have recently seen a record-breaking outflow of nearly $1 billion.
The wavering confidence of Chinese investors, especially after the sharp fluctuations from last week’s record highs, is considered one of the reasons for the increasing pressure on gold prices today.
Despite the heavy volatility in gold prices, silver prices remained relatively stable, hovering around $90 per ounce.