Sudden increase in shock, dancing non-stop

Updated gold price on the morning of November 17. Illustration photo: Phan Anh

Domestic gold price

Domestic gold price on the morning of November 17.

Domestic gold price developments

Source: VDOS Dragon Online Service JSC.

World gold price developments

Source: Kitco

World gold prices increased sharply as the USD decreased. At 3:00 a.m., the US Dollar Index, which measures the greenback's fluctuations against six major currencies, was at 104.227 points (down 0.04%).

Experts said that gold prices were supported by data from the latest US inflation report. The report from the US Department of Labor showed that the producer price index (PPI) - a measure of inflation in wholesale prices of goods - fell 0.5% in October, marking the sharpest monthly decline since April 2020. Previously, the consumer price index (CPI) report released on Tuesday also showed that inflation decreased faster than expected.

Continued decline in inflation has led investors to believe that the US Federal Reserve (FED) may end its interest rate hikes and start cutting rates as early as 2024. This expectation is beneficial for gold prices because gold is a non-interest bearing asset.

Lower interest rates increase the appeal of gold, as it is often used as a safe investment during times of inflation.

Gold volatility has eased following the US inflation report, said Matt Simpson, senior analyst at City Index. Gold is trading comfortably around $1,960 an ounce despite the dollar’s efforts to “recover.” Without a new catalyst, gold appears to lack the momentum to rally in the session.

Meanwhile, Mr. David Meger - director of precious metals trading at High Ridge Futures - commented: "CPI and PPI reports are both good and continue to support gold prices through expectations that falling inflation will lead to the FED stopping raising interest rates."

Interest rate futures markets are pricing in a 100% chance of the Fed keeping rates unchanged at its December meeting, according to data from the CME Group's FedWatch Tool.

Source: https://laodong.vn/tien-te-dau-tu/cap-nhat-gia-vang-sang-1711-dot-ngot-tang-soc-nhay-mua-khong-ngung-1268323.ldo