Domestic gold prices
The current difference between the buying and selling price of gold has been adjusted down to around 3 million VND. This difference is still considered very high. Investors face the risk of losses as businesses shift the risk to buyers.
World gold prices
Global gold prices are facing significant headwinds amidst a strong US dollar. At 5:15 PM, the US Dollar Index, which measures the dollar's fluctuations against six major currencies, stood at 102.132 points.
Gold price forecast
Many experts believe that gold is under pressure from profit-taking. Jim Wyckoff, an expert at Kitco, predicts that gold will trade sideways this week (January 8-12) as the US dollar recovers and US government bond yields rise over the past week.
Market analyst Tim Waterer of KCM Trade believes that the stability of the USD and bond yields contrasts with what the stock market witnessed at the end of 2023. This has created significant headwinds for gold prices.
According to TD Securities, following the positive US jobs report released earlier this year, the organization believes that the Fed may postpone interest rate cuts until the second quarter of 2024. TD Securities made this assessment despite market signals indicating a nearly 63% probability that the Fed will still cut interest rates from the current 5.25-5.5% per annum to 5-5.25% in March.
Philip Streible, market strategist at Blue Line Futures, argues that expectations of a Fed interest rate cut in March remain high because of existing "cracks" in the US labor market.
Investors are particularly interested in news that the People's Bank of China (PBOC) may lower the reserve requirement ratio to boost lending and support economic growth.
Bloomberg reported that the PBOC official's remarks did not indicate an imminent interest rate cut, but that it could be considered in the coming months. Similar comments were made last July before the central bank lowered the reserve requirement ratio for large banks in September of the same year.
The metals market could also receive some support from this news, which could boost better trade and consumer demand for metals from China in the coming months.
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