DNVN - The increase in USD price has put pressure on precious metals, causing gold prices to drop nearly 18 USD in the last trading session of the week.
World gold price
At the end of the trading session on January 3, the world spot gold price decreased by 17.8 USD, down to only 2,639 USD per ounce. Earlier, at the beginning of the session, the gold price reached a 3-week peak of 2,664 USD.
The main reason for the decline in gold prices is the strengthening of the US dollar and investors adjusting their strategies to adapt to the upcoming economic and trade changes from the administration of President-elect Donald Trump. Nitesh Shah, commodity strategist at WisdomTree, commented that Mr. Trump's import tax proposals will push the USD price up, thereby creating great pressure on the precious metal market.
The Dollar Index, which measures the greenback against a basket of major currencies, posted its biggest gain since mid-November. A stronger dollar makes gold more expensive for buyers outside the United States.
"Slowing global trade flows and economic activity will reduce demand for precious metals," Shah said, highlighting the impact of Trump's import tariffs.
However, gold prices are still supported by many factors. The rising public debt in the US and other countries is one of them. In addition, complex geopolitical issues are unlikely to be resolved soon.
On January 20, Mr. Trump will officially take office as President of the United States. His protectionist trade policies are expected to increase inflation, causing the US Federal Reserve (Fed) to slow down the monetary easing process, thereby curbing the rise in gold prices. After 3 interest rate cuts in 2024, the Fed is expected to cut interest rates only 2 times this year.
Still, January is typically a positive month for gold. “January has typically seen strong gains over the past 20 years, as investors start to open new positions and demand for holiday jewelry increases,” said Ross Norman, an independent precious metals analyst.
In contrast to gold, other precious metals rose in price on January 3. Silver rose 0.2% to $29.6 per ounce. Platinum rose 1.9% to $940, while palladium also rose 1.7% to close at $926.
Domestic gold price remains stable
At Saigon Jewelry Company - SJC, the buying price of gold bars remains at VND84 million, while the selling price continues to be VND85.5 million, similar to yesterday.
Other gold and silver trading enterprises such as PNJ, Phu Quy, and Doji also did not adjust the price of SJC gold bars, keeping the buying and selling prices equal to SJC.
For 4-number 9 gold rings, SJC still maintains the old price, buying at 84 million VND and selling at 85.3 million VND. Phu Nhuan Jewelry Company (PNJ) also remains unchanged, maintaining the buying price at 84.4 million VND and the selling price at 85.5 million VND.
For Phu Quy Company alone, the buying price of gold rings decreased by VND100,000, down to VND84.3 million, while the selling price decreased slightly to VND85.5 million.
Cao Thong (t/h)
Source: https://doanhnghiepvn.vn/kinh-te/gia-vang-ngay-4-1-2024-vang-the-gioi-giam-manh-tu-dinh-3-tuan-vang-trong-nuoc-on-dinh/20250104093126087
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