Experts offer differing opinions for next week.

Gold price update at the close of trading on January 7th: Experts offer differing predictions for the coming week. — Gold price update at the close of trading on January 7th. (Illustrative image: Phan Anh)

Domestic gold prices

Domestic gold price trends. Unit: Million VND/ounce. Graphics: Khuong Duy

The current difference between the buying and selling price of gold has been adjusted down to around 3 million VND. However, this difference remains very high. Investors face the risk of losses as businesses shift the risk to buyers.

Gold prices are rising, however, the spread between buying and selling gold is very high, causing investors to suffer heavy losses after only one week of buying.

Specifically, if an investor bought gold at DOJI Group on December 31, 2023, at 74 million VND/ounce and sold it today (January 7, 2024), they would incur a loss of 2 million VND/ounce. Similarly, those who bought gold at Saigon Jewelry Company (SJC) would also lose 2 million VND/ounce.

Currently, the spread between the buying and selling price of gold in the domestic market is considered too large. This could put buyers at risk of losses when investing.

World gold prices

World gold price trends. Unit: USD/ounce. Chart: Phan Anh

Global gold prices recorded their first weekly decline in a month. At the close of trading on Friday, gold prices remained largely unchanged amidst a near-unrestricted US dollar. As of 5:00 PM on January 7th, the US Dollar Index, which measures the dollar's fluctuations against six major currencies, stood at 102.049 points (down 0.09%).

Precious metals fell in price after the release of US employment data. The data showed the US economy added 216,000 new jobs in December 2023, more than expected. The decline was then somewhat mitigated after data from the Institute of Supply Management (ISM) survey showed that the Purchasing Managers' Index (PMI) for the services sector fell from 52.7% to 50.6% last month.

Although the US Federal Reserve (FED) predicts interest rates may fall this year, the jobs report released on January 5th reinforced the possibility of a "soft landing" for the US economy, as well as the stance of maintaining high interest rates for a longer period. This is unfavorable for gold prices.

Gold price forecast

Jerry Braakman, President and Chief Investment Officer of First American Trust, noted that the precious metal typically reacts positively to falling interest rates, a weakening US dollar, and slowing economic growth. Therefore, this information "is not favorable for gold prices."

However, this expert argues that one shouldn't place too much emphasis on a single month's jobs report. The expert still predicts a weakening US economy this year, leading the Fed to lower interest rates, thereby supporting gold prices.

This week, nine Wall Street analysts participated in Kitco News' Gold Survey, and they remain as optimistic as ever. Six experts (66%) predict higher gold prices next week, while only one analyst (11%) predicts a decline. The remaining two experts (22%) hold a neutral view on gold.

A total of 301 votes were cast in Kitco's online polls. Of these, 149 retail investors (50%) expect gold to rise next week. Another 79 (26%) predict lower prices. 73 respondents (24%) held a neutral view on the short-term outlook for the precious metal.

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