World gold prices dropped dramatically after setting a record, with domestic gold prices dropping half a million dong per tael

World gold prices dropped sharply after reaching an all-time high during Monday’s trading session, causing domestic gold prices this morning (December 5) to simultaneously decrease by 400,000-600,000 VND/tael. Compared to international gold price fluctuations, domestic gold prices are more stable.

Closing the first session of the week in the US market, spot gold price “evaporated” to 41.9 USD/oz, equivalent to a decrease of more than 2%, closing at 2,030.1 USD/oz. In the previous trading session of the same day in the Asian market, the gold price was at 2,135 USD/oz, an unprecedented high – according to data from the Kitco trading floor.

The price of gold delivered in February on the COMEX floor in New York decreased by 47.5 USD/oz at the close of the session, equivalent to a decrease of 2.3%, to 2,042.2 USD/oz. During the session, at one point the price of gold futures set a record at 2,152.3 USD/oz.

Gold price dropped because US Treasury bond yields and the USD exchange rate both increased again. In addition, many investors also took profits when gold prices reached the highest level in history.

The 10-year US Treasury bond yield increased after hitting a 3-month low, closing with an increase of 4 basis points, reaching 4,261%. The yield on the 2-year term increased by 7 basis points, reaching 4.633%.

The Dollar Index, which measures the strength of the USD against a basket of six major currencies, increased 0.5%, closing at 103.62 points. Previously, this index had decreased for 3 consecutive weeks up to last week.

According to analysts, despite falling sharply again, gold prices are still supported by expectations that the US Federal Reserve (Fed) will soon cut interest rates in 2024 and continued geopolitical tensions in the region. Middle East.

“Gold prices will benefit from the weakness of the USD, from expectations that the USD will continue to depreciate, and that geopolitical pressure will still be there,” Caxton strategist David Stritch commented to MarketWatch. .

The Fed’s final monetary policy meeting of 2023 will take place next Tuesday and Wednesday. According to data from CME’s FedWatch Tool, the market is betting on an almost 100% chance that the Fed will keep interest rates unchanged at this meeting. Along with that, the market is betting on a nearly 60% chance of the Fed cutting interest rates by at least 0.25 percentage points in March, from a bet of only about 22% for this possibility a week ago.

A UBS report stated that gold is once again proving its effective role in diversifying investment portfolios and preventing risks. However, Swiss bank analysts warn against investors “chasing” the uptrend of gold. “Given that gold prices have risen sharply in recent weeks and the high expectations of a Fed rate cut being reflected in gold prices, we will not chase gold price increases in the short term,” The report contains a paragraph.

Head of research Adrian Ash at precious metals trading platform BullionVault said that record high gold prices, combined with the highest cash interest rates since the 2008 global financial crisis, had led to the selling activity. Strong words from gold investors. In a commentary, Mr. Ash said that aside from central banks in Asia and Western hedge funds buying gold aggressively, the precious metal is not an attractive trade for all investors across the globe. globally at this time.

Also according to Mr. Ash, gold shops in the US these days mainly serve customers and gold exchange-traded funds (ETFs) are still net sellers. He emphasized that the amount of gold sold on BullionVault on Monday was 2.5 times more than the amount purchased within 7 days.

However, Mr. Ash forecasts that gold prices will continue to increase in 2024 due to the economic slowdown and central banks moving to cut interest rates, plus geopolitical tensions continue to be a supporting factor. gold price.

1 year ago, giá  World gold increased by more than 13%.  Unit: USD/oz.
Over the past year, world gold prices increased by more than 13%. Unit: USD/oz.

The world’s largest gold exchange-traded fund (ETF) SPDR Gold Trust bought a net 2.3 tons of gold in the first session of the week, increasing its holding volume to 881.1 tons of gold. However, from last week until now, this fund still sells more than it buys.

Domestically, the price of gold bars this morning slipped from the mark of 74 million VND/tael and the price of gold rings could not maintain the mark of 63 million VND/tael. But compared to the strong fluctuation of international gold prices in recent days, domestic gold prices are somewhat “smooth”. Instead, the difference between domestic and world gold prices is continuously elastic.

At 9 a.m., Phu Quy Group quoted the price of SJC gold bars to the Hanoi market at 72.6 million VND/tael (buying) and 73.8 million VND/tael (selling), a corresponding decrease of 300,000 VND/tael. tael and 500,000 VND/tael compared to yesterday morning.

Phu Quy brand 999.9 plain round rings are priced at 61.5 million VND/tael and 62.7 million VND/tael, down 600,000 VND/tael at each price.

In the Ho Chi Minh City market, SJC Company quoted the price of gold bars of the same brand at 72.8 million VND/tael and 74 million VND/tael, down 200,000 VND/tael and 400,000 VND/tael compared to yesterday morning.

At the same time, the spot price of gold in the Asian market increased by 4.4 USD/oz compared to the close of the US session, equivalent to an increase of 0.22%, standing at 2,034.5 USD/oz – according to Kitco.

The international gold price converted according to the USD selling rate of Vietcombank is currently equivalent to nearly 60.1 million VND/tael. Thus, compared to international gold prices, the retail price of SJC gold bars is 13.7-13.9 million VND/tael higher, while the price of gold rings is 2.6 million VND/tael higher.

Vietcombank this morning quoted USD price at 24,050 VND (buy) and 24,420 VND (sell), down 40 VND at each price compared to yesterday morning.

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