The global precious metal market experienced significant volatility, dropping by over 40 USD immediately at opening. By midday, the decline narrowed to 15 USD, with prices currently trading around 4,435 USD per ounce.

This decline extends last week's sell-off. During the 28/8 session, each ounce of gold fell by over 3% as investors anticipated a Federal Reserve (Fed) interest rate hike in September, following Chairman Kevin Warsh's speech on curbing inflationary pressures. Precious metals lose their appeal in a high-interest-rate environment.

The significant volatility at the start of the week ran contrary to the predictions of most Wall Street experts. In Kitco News's weekly survey, nearly half of the 21 experts believed gold prices would rise this week, despite last week's sharp decline. Only about 30% leaned towards a scenario where precious metals would continue to fall, while the remainder predicted prices would trade sideways around the 4,450 USD mark.

Among those holding a positive view, James Stanley, a senior market strategist at Forex, stated that last week's volatility was a healthy correction and that the long-term accumulation trend remains unchanged.

Sharing this perspective, Adrian Day, President of Adrian Day Asset Management, suggested the precious metals market needed a breather after its strongest monthly gain since 1999. From around 4,000 USD at the start of the month, gold had accumulated approximately 16%, at one point reaching nearly 4,700 USD. He emphasized that this is likely a temporary pause, as most investors still view gold as a safe haven amid persistent inflation and the US national debt, which has surpassed 40 trillion USD.

Global gold prices in August rose from around 4,000 USD to nearly 4,700 USD before falling to the current 4,440 USD. *Screenshot*

"These price drops should be viewed as short-term, and this opportunity should be utilized for buying", said Rich Checkan, President and Chief Operating Officer of Asset Strategies International.

A Kitco News survey of individual investors yielded similar results, although the optimism level was not as high as last week. Nearly 60% of the 207 investors predicted a market increase, while 20% expected sideways movement, and 21% leaned towards a pessimistic scenario.

Domestically, gold prices remained stable. SJC and PNJ traded gold bars around 145,7 - 148,7 million dong per tael, unchanged from last weekend. Plain gold rings (one to five chi type) were bought and sold by brands for approximately 500,000 dong less than gold bars.

Phuong Dong