Under a lot of pressure, hard to break through

Update on the closing price of gold on January 10: Under a lot of pressure, difficult to break out — Updated gold price closing session 10.1. Illustration photo: Phan Anh

Domestic gold price

The current gold buying and selling price difference has been adjusted down to around 3 million VND. This difference is still considered very high. Investors face the risk of loss when businesses push the risk onto buyers.

World gold price

World gold prices are facing many obstacles in the context of the USD anchored at a high level. Recorded at 5:15 p.m., the US Dollar Index measuring the fluctuations of the greenback against 6 major currencies was at 102.132 points.

Gold Price Forecast

Many experts believe that gold is under profit-taking pressure. Kitco expert Jim Wyckoff predicts that gold will move sideways this week (January 8-12) as the USD recovers and US government bond yields increase last week.

The stability of the US dollar and bond yields, in contrast to what the stock market saw in late 2023, has been a significant drag on gold prices, said market analyst Tim Waterer of KCM Trade.

According to TD Securities, after the positive US jobs report released at the beginning of the year, this organization believes that the FED may push back the interest rate cut to the second quarter of 2024. TD Securities made this assessment even though market signals show that there is a nearly 63% chance that the FED will still cut interest rates from the current 5.25-5.5%/year to 5-5.25% in March.

Philip Streible, chief market strategist at Blue Line Futures, said that expectations for a rate cut by the Fed in March remain high because there have been "cracks" in the US labor market.

Investors are paying particular attention to news that the People's Bank of China (PBOC) may lower the reserve requirement ratio to boost lending and support economic growth.

The PBOC official’s comments did not indicate an imminent rate cut but could be considered in the coming months, Bloomberg reported. Similar comments were made in July last year before the central bank cut the reserve requirement ratio for major banks in September of the same year.

The metals market could also get some support from this news, which could drive better commercial and consumer demand for metals from China in the coming months.

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