Gold prices fell before the US released the GDP report

Domestically, the price of gold bars this morning (January 25) decreased by 200,000 VND/tael, continuing to be over 16 million VND/tael higher than the converted world gold price.

Near 10:00 am, Phu Quy Group listed the price of SJC gold bars in the Hanoi market at 74.05 million VND/tael (buying) and 76.4 million VND/tael (selling). Compared to the same time yesterday morning, the price of SJC gold bars at this enterprise is currently down 150,000 VND/tael on the buying side and down 200,000 VND/tael on the selling side.

The price of 999.9 plain round gold ring of Phu Quy brand is 63.5 million VND/tael and 64.6 million VND/tael, corresponding to the buying and selling price, down 300,000 VND/tael compared to yesterday morning.

In the Ho Chi Minh City market, SJC Company quoted the price of gold bars of the same brand at 74 million VND/tael and 76.5 million VND/tael, down 200,000 VND/tael at each end of the price.

At the same time, the spot price of gold in the Asian market stood at 2,017.1 USD/oz, an increase of 2.7 USD/oz, equivalent to an increase of more than 0.1%, compared to Wednesday’s closing session in America. This price is equivalent to about 60.2 million VND/tael if converted according to the USD selling exchange rate at Vietcombank.

Compared to yesterday morning, the converted world gold price is currently down about 150,000 VND/tael. Compared to the converted world gold price, the retail price of SJC gold bars is 16.2-16.3 million VND/tael higher, while the price of gold rings is 4.4 million VND/tael higher.

Last night’s New York session, spot gold price decreased by 15.5 USD/oz, equivalent to a decrease of nearly 0.8%, closing at 2,014.4 USD/oz.

Gold price decreased due to better-than-expected data on the US economy. S&P Global’s composite purchasing managers’ index (PMI) showed activity in the US manufacturing and services sectors rose to its highest level since June.

Recent US economic data that is better than expected has caused investors to reduce their bets on the possibility of the Fed lowering interest rates in March. Instead, the possibility that the Fed will start reducing interest rates in the second quarter is increasing. Many experts even believe that it will take until the second half of 2024 for this central bank to start cutting monetary policy.

Current developments  world gold last 6 months.  Unit: USD/oz - Source: Trading Economics
World gold price developments in the past 6 months. Unit: USD/oz – Source: Trading Economics

On Thursday, the US Department of Labor will release the gross domestic product (GDP) report for the fourth quarter and full year 2023. This data will continue to shape market expectations about Fed policy in the near future. .

The decrease in gold prices was limited thanks to the USD depreciating after several consecutive rising sessions. The Dollar Index closed the session at 103.2 points, from 103.5 points in the previous session.

According to TD Securities strategist Daniel Ghali, the USD faces downward pressure after China moved to increase liquidity in the banking system to stimulate economic growth. China’s Central Bank on January 25 announced it would lower mandatory reserves to free up $140 billion in liquidity at commercial banks.

“China is moving towards a more comprehensive stimulus package to relieve the pessimism that has shadowed the country’s financial markets over the past few months. China’s efforts are putting devaluation pressure on the USD,” Mr. Ghali said.

Also according to this expert, gold prices are holding steady in the face of fluctuations in interest rate expectations in the market. He believes that is because investors still do not hold enough gold in their portfolios considering that the Fed has reached the end of the tightening cycle and is about to enter the easing cycle.

Vietcombank this morning quoted USD price at 24,400 VND (buy) and 24,770 VND (sell), an increase of 30 VND at each price compared to yesterday morning, bringing the total increase in the last 3 days to 70 VND.

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