Domestic gold bar prices increased by nearly 1 million VND/tael, reaching the highest level in history

World gold prices increased, but domestic gold bar prices broke out stronger, surpassing the threshold of 75 million VND/tael – unprecedented in history and over 15 million VND/tael higher than the converted international price. The price of this precious metal is being supported by the downward trend of the USD exchange rate and US Treasury bond yields, in the context that the US Federal Reserve (Fed) is expected to cut interest rates soon.

At nearly 10:00 a.m. today (December 20), Phu Quy Group listed the price of SJC gold bars for the Hanoi market at 74.4 million VND/tael (buying) and 75.4 million VND/tael (selling). ). Compared to yesterday morning, the price of SJC gold bars at this enterprise currently increased by 850,000 VND/tael on the buying side and increased by 900,000 VND/tael on the selling side.

Phu Quy brand 999.9 plain round rings are priced at 61.75 million VND/tael and 62.75 million VND/tael, corresponding to the buying and selling prices, increasing by 350,000 VND/tael and 300,000 VND/tael, respectively.

In the Ho Chi Minh City market, Phu Nhuan Jewelry Company (PNJ) quoted SJC gold bar prices at 74.5 million VND/tael and 75.4 million VND/tael.

Gold traders say the price of domestic gold bars has never been as high as it is today. Compared to the converted world gold price, the retail price of SJC gold bars is about 15.2 million VND/tael higher, while the price of gold rings is about 2.6 million VND/tael higher.

Spot gold price in the Asian market at nearly 10:00 a.m. Vietnam time stood at 2,040 USD/oz, down nearly 1 USD/oz compared to Tuesday’s closing session in the New York market – according to data from the exchange. Kitco transactions. This price is equivalent to about 60.2 million VND/tael if converted at the USD selling rate at Vietcombank, an increase of 300,000 VND/tael compared to yesterday morning.

Closing last night’s session in the US, spot gold price increased by 14 USD/oz, equivalent to an increase of nearly 0.7% compared to the previous session’s close, reaching 2,041 USD/oz.

Gold prices increased as the USD exchange rate and US Treasury bond yields continued to decline.

The Dollar Index, which measures the strength of the USD against a basket of six major currencies, fell to 102.25 points at the close, from 102.6 points in the previous session. The 10-year US Treasury bond yield fell to 3.92%, the lowest in 5 months.

Gold is a non-interest-bearing asset and is priced in USD, so bond yields and USD exchange rates fall together, providing a “dual” support for gold prices. Yields on 10-year US Treasury bonds have fallen about 1.1 percentage points since reaching a 16-year peak of over 5% in late October. Dollar Index has fallen nearly 2.9% within 3 months. come back here.

From the beginning of the year until now, what  world gold  increased by about 11.8%.  Unit: USD/oz.
From the beginning of the year until now, world gold prices have increased about 11.8%. Unit: USD/oz.

According to TD Securities chief strategist Bart Melek, investors are still buying gold because they cannot find any important reasons to sell gold at this time. That’s because the market is still betting the Fed will cut interest rates before reaching its 2% inflation target. Last week, Fed Chairman Jerom Powell signaled that the Fed may have finished raising interest rates and began to consider discussing interest rate cuts.

However, exchange-traded funds (ETFs), an important force in the gold market, continued their net selling trend. After several sessions of “laying still”, the world’s largest gold ETF SPDR Gold Trust sold a net of about 2 tons of gold in Tuesday’s session, reducing its holdings to nearly 877.7 tons of gold.

This week, some Fed officials sought to push back against market expectations of an imminent Fed rate cut, saying it was too early to consider easing monetary policy. However, the market is betting about a 75% chance of the Fed cutting interest rates at its meeting in March – according to CME’s FedWatch Tool.

Investors are also more or less cautious before the US Department of Commerce releases the personal consumption expenditures index (PEC) report – the Fed’s favorite inflation measure – on Friday this week. This is a data point that could cause interest rate expectations to fluctuate.

Although many experts believe that the price of gold will be difficult to break out without a new catalyst, a report by Commerzbank stated that the price of this precious metal will not adjust to a deep decrease in the short term, because of the Fed’s interest rate cuts. sooner or later it will happen.

Vietcombank this morning quoted USD price at 24,130 VND (buy) and 24,500 VND (sell), down 20 VND at each price compared to yesterday morning.

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