Experts have mixed views on next week

Update on the closing price of gold on January 7: Experts give different opinions for next week — Updated gold price closing session 7.1. Illustration photo: Phan Anh

Domestic gold price

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

Gold prices are increasing, however the difference between buying and selling gold is at a very high level causing investors to suffer heavy losses after only 1 week of buying.

Specifically, if buying gold at DOJI Group on December 31, 2023 at VND 74 million/tael and selling it today (January 7, 2024), investors will lose VND 2 million/tael. Similarly, those who buy gold at Saigon Jewelry Company SJC will also lose VND 2 million/tael.

Currently, the difference between buying and selling gold in the country is considered too large. This can put buyers at risk of losing money when investing.

World gold price

World gold prices recorded their first weekly decline in a month. At the end of the week, gold prices did not change much in the context of the USD moving almost sideways. At 5:00 p.m. on January 7, the US Dollar Index, which measures the greenback's fluctuations against six major currencies, stood at 102.049 points (down 0.09%).

The precious metal fell after the release of US employment data, which showed that the US economy added 216,000 new jobs in December 2023, more than expected. The decline was then somewhat limited after data from the Institute for Supply Management (ISM) survey showed that the purchasing managers' index (PMI) in the service sector fell from 52.7% to 50.6% last month.

Although the US Federal Reserve (FED) predicted that interest rates would likely decrease this year, the jobs report released on January 5 reinforced the possibility of a “soft landing” of the US economy, as well as the stance of maintaining high interest rates for a longer period of time, which is unfavorable for gold prices.

Gold Price Forecast

Mr. Jerry Braakman - President and Chief Investment Officer of First American Trust Company - commented that this precious metal often reacts positively to lower interest rates, a weaker USD and slowing economic growth. Therefore, the above information is "not beneficial for gold prices".

However, this expert believes that we should not focus too much on the monthly employment report. This expert still predicts that the US economy will weaken this year, causing the FED to lower interest rates, thereby supporting gold prices.

This week, nine Wall Street analysts participated in the Kitco News Gold Survey, and they remain as bullish as ever. Six analysts, or 66%, see gold prices higher next week, while only one analyst, or 11%, sees prices falling. The remaining two analysts, or 22%, are neutral on gold.

A total of 301 votes were cast in Kitco’s online poll, with 149 retail investors, or 50%, expecting gold to rise next week. Another 79, or 26%, predicted lower prices. Seventy-three respondents, or 24%, were neutral on the precious metal’s near-term outlook.

See more articles about gold prices on Lao Dong Newspaper here...

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