ANTD.VN - Gold prices rose sharply thanks to better-than-expected US inflation data, raising expectations that the Fed will be more dovish in monetary policy.
This morning, domestic gold prices continued to increase. In particular, SJC gold increased slightly by 50 thousand VND per tael, to 66.65 - 67.25 million VND/tael.
Gold rings of various brands have increased more strongly, about 300 - 400 thousand VND per tael. Accordingly, SJCC 99.99 gold rings are listed at 56.00 - 57.00 million VND/tael; PNJ gold rings are 56.00 - 57.10 million VND/tael; Bao Tin Minh Chau plain round rings are 56.12 - 56.97 million VND/tael...
In the world , the gold price on July 12 (last night Vietnam time) recorded an increase of more than 25 USD per ounce, reaching a 3-week peak of 1,957.3 USD/ounce (spot gold, updated on Kitco).
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Gold prices rise sharply as the USD weakens |
Gold prices rose sharply after the US inflation report was released, which was slightly lower than market expectations. Specifically, the consumer price index for June increased 3.0% compared to the same period last year, lower than the expected increase of 3.1% by economists and compared to the increase of 4.0% in May.
Core CPI, excluding food and energy, rose 4.8% year-on-year, compared with expectations for a 5.0% increase and up from 5.3% in the previous month.
The figures support a dovish monetary policy, with expectations that the US Federal Reserve will ease its tightening steps more than previously expected.
In fact, core inflation at 4.8% is still more than double the Fed's 2% target, so even if there is a decline this month, the Fed will still likely raise interest rates at its meeting at the end of July, but the market also believes that the next meeting will be a rate break.
According to the CME FedWatch tool, the probability of a quarter-point rate hike by the end of July is now 92.4%, down slightly from the previous day's 93% forecast. However, there is only a 12.9% chance that the Fed will deliver back-to-back rate hikes at both the July and September FOMC meetings.
The US dollar index fell sharply, US treasury bond yields also fell, on the contrary, stock indexes increased and gold prices went up.
The dollar had its biggest one-day drop since January 2023, with the USD Index falling to 100.25 points. The index opened the trading week at 103 points on July 6 and has lost 2.75% over the past five trading days.
Meanwhile, gold has increased by about 2.13% in the same period. This shows that the increase of gold since the beginning of the week has mainly come from the weakening of the USD rather than from the buying power of investors.
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