World gold prices stagnated while waiting for news of record high US and domestic inflation

World gold prices stagnated below the psychological threshold of 2,200 USD/oz while investors waited for the US consumer price index (CPI) report for February. Domestic gold prices this morning (March 12) maintained an upward trend, setting a new record above the threshold of 82 million VND/tael for gold bars and over 71 million VND/tael for gold rings.

At nearly 10:00 a.m., Phu Quy Group listed the price of SJC gold bars for the Hanoi market at 80.3 million VND/tael (buying) and 82.2 million VND/tael (selling). Compared to the same time yesterday, the price of SJC gold bars at this enterprise currently increased by 300,000 VND/tael on the buying side and increased by 200,000 VND/tael on the selling side. Previously, the retail price of SJC gold bars in Phu Quy in the early morning was listed at a record level of 83.3 million VND/tael.

Phu Quy brand 999.9 round ring is priced at 70 million VND/tael and 71.3 million VND/tael, corresponding to the buying and selling price, an increase of 150,000 VND/tael compared to yesterday morning.

Bao Tin Minh Chau Company quotes the price of 999.9 plain round gold ring of Thang Long Dragon brand at 70.8 million VND/tael and 71.38 million VND/tael, an increase of 100,000 VND/tael compared to yesterday morning and is the level unprecedented high of gold rings.

In the Ho Chi Minh City market, SJC Company quoted the price of gold bars of the same brand at 80.3 million VND/tael and 82.3 million VND/tael, an increase of 300,000 VND/tael at each end of the price yesterday morning.

SJC round rings are priced at 68.9 million VND/tael (buying) and 70.25-70.35 million VND/tael (selling) depending on product weight, increasing by 100,000 VND/tael on the buying side and increasing by 200,000 VND /quantity in the selling direction.

Spot gold price in the Asian market at nearly 10:00 am Vietnam time stood at 2,180.3 USD/oz, down 2.5 USD/oz, equivalent to a decrease of more than 0.1%, compared to the close of the trading session. on Monday in the New York market – according to data from the Kitco exchange.

This price is equivalent to about 65.1 million VND/tael if converted at the USD selling rate at Vietcombank, an increase of 100,000 VND/tael compared to yesterday morning.

Compared to the converted world gold price, the retail price of SJC gold bars is 17.2 million VND/tael higher, while the price of gold rings is 6.3 million VND/tael higher.

Closing the first session of the week in the US, spot gold price increased by 3.2 USD/oz, equivalent to an increase of about 0.15%, compared to the closing level at the end of last week, reaching 2,182.8 USD/oz.

Current developments  world gold in the past 5 years.  Unit: USD/oz - Source: Trading Economics.
World gold price developments over the past 5 years. Unit: USD/oz – Source: Trading Economics.

World gold prices are in record territory, after reaching nearly 2,200 USD/oz in last Friday’s session. The precious metal’s price is slowing due to investor caution ahead of an important US economic data point.

The February CPI report is expected to be published by the US Department of Labor on Tuesday (March 12). In a survey by Dow Jones news agency, economists forecast that CPI increased 0.4% in February compared to January and increased 3.1% over the same period last year. Core CPI – the index that does not take into account two frequently fluctuating commodity groups, energy and food – is forecast to increase by 0.3% on a monthly basis and 3.7% on a yearly basis.

This data is expected to have a great influence on financial market expectations about the monetary policy of the US Federal Reserve (Fed), thereby affecting the path of gold prices. A hotter-than-expected inflation report could push back the date of the Fed’s first interest rate cut, thereby putting downward pressure on gold prices. On the contrary, a weaker report than expected would strengthen the possibility of the Fed cutting interest rates in June – a factor that has pushed gold prices to recent record highs.

“If inflation stays hot, hotter than last month’s data, that will probably be a bit of a problem for the gold market and could cause short-term selling pressure,” said senior analyst Jim Wyckoff of the site. Kitco Metals commented. However, Mr. Wyckoff still believes that gold prices still have the ability to reach a new peak in the short term.

The market is thinking that the possibility of the Fed reducing interest rates by 0.25 percentage points at the June meeting is over 70% – according to the FedWatch Tool of the CME trading floor.

In addition to the interest rate outlook, gold prices are also benefiting from the net buying trend of gold by central banks.

In a sign of buoyant sentiment, investors on the U.S. COMEX exchange increased their net gold bullish positions by 63,018 contracts to 131,060 contracts in the week ended May 5. /3 – Reuters news agency reported.

“Major speculators increased their bullish positions at the strongest weekly rate in 3½ years. Gold is clearly a popular asset, and not an asset to short sell while the market expects the Fed to soon reduce interest rates – City Index analyst Matt Simpson commented.

Vietcombank this morning quoted USD price at 24,430 VND (buy) and 24,800 VND (sell), down 10 VND at each price compared to yesterday morning.

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