Domestic gold price
The domestic gold market is on the Lunar New Year holiday. Before the holiday, domestic gold prices were high, approaching the 80 million VND/tael mark.
At the close of the session on February 7, the price of 9999 gold bars at SJC Ho Chi Minh City was VND76.7 million/tael (buy) and VND78.9 million/tael (sell). SJC Hanoi listed at VND76.7 million/tael (buy) and VND78.92 million/tael (sell).
DOJI Hanoi listed at 76.55 million VND/tael (buy) and 78.85 million VND/tael (sell). DOJI Ho Chi Minh City bought SJC gold at 76.55 million VND/tael and sold at 78.85 million VND/tael.
International gold price
Gold price on Kitco floor (at 8:00 p.m., February 9, Vietnam time) was trading at $2,032/ounce, down 0.11% compared to the beginning of the session. Gold futures price for April 2024 delivery on Comex New York floor was trading at $2,049/ounce.
Gold prices fell after strong US economic data and a series of hawkish comments from the Federal Reserve (Fed) caused markets to largely discount expectations for an early interest rate cut this year.
Traders are leaning toward forecasting interest rate cuts starting in May 2024, according to the CME Fedwatch tool. Lower interest rates reduce the opportunity cost of holding gold.
The USD surged to a three-month high during the week, also putting pressure on bullion prices. The US Dollar Index (DXY), which measures the greenback's performance against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), stood at 104.37.
Gold markets in many Asian countries, including China and Vietnam, are on Lunar New Year holidays.
According to Metals Focus consultants in China, the year of the dragon has many bullish factors for the gold market.
“The Year of the Dragon usually drives strong demand for jewelry as it is a very auspicious time in Chinese culture,” said Metals Focus expert.
However, gold prices have increased sharply to a historical high, Valentine's Day coincides with a holiday,... these things have significantly affected the gold market.
Gold Price Forecast
Gold prices have largely been stuck in the $2,000-$2,050 an ounce trading range established over the past week, with traders awaiting further clues on the path of interest rates.
Geopolitical concerns will keep safe-haven assets like gold on the rise, said Tim Waterer, chief market analyst at financial services firm KCM Trade.
Goldman Sachs analysts said the prospect of interest rate cuts posed some headwinds for gold prices. However, demand for physical gold remained high thanks to continued buying by central banks and emerging markets, which should support lower prices.
Goldman Sachs analysts maintained their 12-month spot gold price target at $2,175 an ounce.
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