Pressure from USD and high interest rates, gold faces difficulties

Domestic gold price today October 9, 2023

At the end of the trading session on October 7, the price of 9999 gold bars at SJC Ho Chi Minh City was 68.5 million VND/tael (buy) and 69.3 million VND/tael (sell). SJC Hanoi listed at 68.5 million VND/tael (buy) and 69.32 million VND/tael (sell).

DOJI Hanoi listed at 68.25 million VND/tael (buy) and 69.25 million VND/tael (sell). DOJI Ho Chi Minh City bought SJC gold at 68.5 million VND/tael and sold at 69.2 million VND/tael.

International gold price today October 9, 2023

Kitco's spot gold price closed the weekend session at $1,833/ounce. Meanwhile, US gold futures reached $1,845.2/ounce.

Gold is the focus of investment in the context of economic instability. (Photo: Kitco)

In the short term, some analysts say gold is at risk of falling further in the face of high bond yields and a strong US dollar.

Most analysts believe that rising long-term bond yields remain a headwind for gold. This was evidenced by a sharp sell-off last week when the US 30-year bond yield rose to 5% for the first time since 2007, while the 10-year bond yield hit a 16-year high of 4.8%.

Analysts pointed out that the reason for the increase in bond yields is because the US Federal Reserve (Fed) is still maintaining high interest rates and has no plans to reduce them.

Consumers are feeling the brunt of rising interest rates, said Edward Moya, senior market analyst at OANDA. Many parts of the economy will be squeezed by rising rates.

According to Edward Moya, the possibility of gold falling to $1,800/ounce cannot be ruled out. However, the context of increasing economic risks may make the current gold price become the focus of investment.

Even if bond yields rise higher, investors should buy gold at current levels, he stressed.

Gold price forecast

Thirteen Wall Street analysts participated in Kitco News’ gold survey last week. 38% predicted higher prices in the near term, another 38% predicted lower prices, and the rest said they would stay flat.

Meanwhile, 528 votes were cast in online polls. Of these, 227 retail investors (43%) expect gold to rise in the coming period. Another 222 (42%) predict gold prices will fall, while the remaining 79 believe gold prices will remain flat.

Gold price today October 8, 2023: SJC remains above 69 million VND/tael Gold price today October 8 on the world market closed the weekend session and increased again. However, world gold price is still at a low level. Domestic gold remains at 69 million VND/tael.

Source: https://vietnamnet.vn/gia-vang-hom-nay-9-10-2023-ap-luc-usd-va-lai-suat-cao-vang-gap-kho-2199465.html