Spot gold prices fell 2,2% to 4.877 USD an ounce at the close of trading on 17/2 (US time), nearing 4.850 USD—its lowest level in two weeks. Silver prices plunged even faster, losing 4,1% to 73 USD an ounce, and at one point traded around 71 USD, marking its lowest price range since the beginning of the year. This marks the second consecutive session of decline for the global precious metals market.

This market correction primarily stems from encouraging signals emerging from the talks between My and Iran. Previously, Iranian Foreign Minister Abbas Araghchi announced on state television that negotiations with the US delegation in Switzerland were "more constructive" than the previous round of dialogue earlier this month. Both sides are developing draft agreements for the next round of talks. Concurrently, a strengthening US dollar also contributed to the downward pressure on precious metals.

Jim Wyckoff, a senior analyst at Kitco Metals, noted that if My can avoid attacking Iran, market concerns would ease, leading to lower gold prices. He emphasized that a bull market requires continuous support from new fundamental factors, which gold has recently lacked, preventing it from surpassing the psychological barrier of 5.000 USD. Sharing this view, Ricardo Evangelista, an analyst at ActivTrades, believes safe-haven demand has temporarily paused as the market awaits clearer information from the My-Iran negotiations.

"Traders are currently waiting and watching," Evangelista said. He added that investors are closely monitoring the minutes from the Federal Reserve (Fed)'s january meeting, expected today, for clues on the interest rate cut path. Amid economic and geopolitical uncertainties, Evangelista predicts gold prices this year will exceed 5.000 USD an ounce, with potential to extend gains to 6.000 USD.

Domestically, the market is closed for the Tet holiday. SJC gold bar prices remain stable at 178-181 million Vietnamese dong per tael.

Phuong Dong