Gold price update at the close of trading on January 4th: Mixed movements.

While domestic gold prices are falling, global gold prices are showing signs of recovery. (Illustration: Tung Giang)

Domestic gold prices

Updated domestic gold prices at the close of trading on January 4, 2024. Unit: Million VND/ounce.

Recent gold price movements in Vietnam. Unit: Million VND/ounce. Graphics: Khuong Duy

The spread between the buying and selling price of gold has been adjusted from around 6 million to approximately 3 million. However, this spread remains very high. Investors face the risk of losses as businesses shift the risk onto buyers.

World gold prices

World gold price trends from 2023 to the present. Unit: USD/ounce. Chart: Phan Anh

Global gold prices are showing signs of recovery amid a weakening US dollar. As of 6:00 PM on January 4th, the US Dollar Index, which measures the fluctuations of the greenback against six major currencies, stood at 102.012 points (down 0.18%).

Gold price forecast

According to Kitco, gold prices remain under significant selling pressure even as the US Federal Reserve (FED) continues to signal its willingness to cut interest rates later this year, according to the minutes of its December monetary policy meeting.

The Fed's summary minutes indicate that officials anticipate cutting interest rates by a total of 0.75 percentage points by the end of 2024, amid progress in the fight against inflation and a gradually more balanced labor market.

However, the minutes still contain many uncertainties, as they do not clarify when the Fed might begin cutting interest rates. Some officials still leave open the possibility of keeping interest rates high for a while longer if inflation does not cool down.

Data from CME Group's FEDWatch tool shows that, immediately after the minutes were released, investor expectations of a Fed interest rate cut in March plummeted from 90% last week to around 70%.

Although there wasn't much reaction to the Fed's monetary policy meeting minutes, spot gold saw strong selling pressure on Wednesday, with prices falling below the initial resistance level of $2,050 per ounce.

Nevertheless, gold is projected to surge from mid-2024, targeting $2,300 per ounce. Mike McGlone, senior commodity strategist at Bloomberg Intelligence, suggests that gold prices could reach new highs in 2024 and potentially even $3,000 per ounce.

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Source: https://laodong.vn/tien-te-dau-tu/cap-nhat-gia-vang-chot-phien-41-dien-bien-trai-chieu-1288188.ldo