ANTD.VN - Although gold prices may stagnate for a few weeks, many forecasts suggest that the gold market in 2024 will continue to see growth in both capital inflows and net purchases as US interest rates fall.
After a slight adjustment yesterday, this morning, domestic gold prices turned around and increased again with an increase of 100,000 VND per tael of SJC gold.
Accordingly, Saigon Jewelry Company (SJC) is listing the price of SJC gold brand at 73.10 - 73.32 million VND/tael; DOJI Group listed at 73.00 - 74.30 million VND/tael; Phu Quy SJC 72.90 - 73.10 million VND/tael; Bao Tin Minh Chau 73.10 - 74.15 million VND/tael...
Non-SJC gold also had a similar increase. PNJ Company increased by 100 thousand VND per tael of gold, to 61.00 - 62.10 million VND/tael; SJC 99.99 rings were listed at 60.90 - 61.95 million VND/tael; Bao Tin Minh Chau's Thang Long Dragon Gold was 61.38 - 62.48 million VND/tael...
Although there has been a recent decrease following the decline in world gold prices, domestic gold prices are still at an all-time high, due to the increased demand for gold by people.
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Domestic gold prices remain very high |
In the world market, after the sharp declines at the beginning of the week, the gold price today has slightly recovered. Spot gold updated on Kitco closed the trading session on December 6 (early this morning Vietnam time) at 2,025 USD/ounce, up 6.3 USD during the session.
The yellow metal is getting some support from falling US Treasury yields this week.
Traders are now looking ahead to Friday morning’s U.S. jobs report, arguably the most important data point of the month for the world’s largest economy . The report will show whether the labor market is weakening, which will give markets more data to gauge the Fed’s monetary policy.
In other news, according to the latest data from the World Gold Council (WGC), outflows from global gold ETFs slowed significantly in November, due to heightened geopolitical risks. Accordingly, the outflows from gold were modest at $920 million for the month, bringing holdings down to 3,236 tonnes, down 9 tonnes in November.
The U.S. Federal Reserve kept interest rates unchanged for a second straight month, adding to investor expectations that the tightening cycle is coming to an end, the WGC said. Such expectations were bolstered by slowing inflation and a cooling labor market, putting further pressure on U.S. Treasury yields and the dollar.
However, the report noted that most of the support for both gold prices and ETF inflows came from “heightened geopolitical risks at the start of the month” and subsequent investor positioning.
North American funds ended a five-month streak of net selling and returned to net buying of $659 million. Meanwhile, European funds extended their streak of consecutive divestments to six months, selling nearly $2 billion in November.
With yields in the region still at decade highs, the opportunity cost continues to weigh on European investors’ appetite for gold ETFs, while stronger currencies – which translate into weaker domestic gold prices relative to the US dollar – also reduce investor interest.
As for market positioning, the World Gold Council wrote that net long positions in the gold futures market increased over the course of last month.
Global gold trading volume averaged $174 billion per day, up 3% from the previous month. While gold ETF trading activity declined significantly (-26%) and OTC trading was virtually unchanged (0%), volumes in other exchange-traded products increased by 10%. Much of that 10% increase was accounted for on the COMEX.
While gold's rally may stall for a few weeks, many remain optimistic about its long-term prospects.
According to ING’s recent 2024 gold forecast, the Dutch banking giant expects to see continued growth in both inflows and net purchases next year as US interest rates fall.
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