Investors increase stockpiling

Update on the closing price of gold on November 3: Investors increase their stockpiling — Geopolitical concerns remain the focus affecting gold prices in the coming time. Illustration: Phan Anh

Domestic gold price

Source: Dragon Viet Online Service JSC VDOS.

Domestic gold price developments

World gold price developments

World gold prices moved sideways as the USD continued to decline. At 6:00 p.m., the US Dollar Index, which measures the greenback's fluctuations against six major currencies, stood at 105.802 points (down 0.16%).

World gold has not broken out despite the difficulties of the US labor market. The number of initial unemployment claims increased more than expected. Specifically, the US Department of Labor said that the number of weekly unemployment claims increased to 217,000, an increase of 5,000 compared to the previous week . Not only did the number of initial claims increase, but laid-off workers also had difficulty finding new jobs. The number of claims increased to 1.818 million.

Notably, oil prices - a commodity closely related to the precious metal - are also heading for a second consecutive week of decline. Specifically, oil prices in the Asian market were little changed in the trading session at the end of the week on November 3 but are heading for a second consecutive week of decline due to concerns about supply constraints due to conflicts in the Middle East.

Meanwhile, Asian stocks were on track for their biggest weekly gain since the start of the year, while bonds rose and the dollar cooled as investors cheered a pause in US interest rate hikes.

Bart Melek, head of commodity strategy at TD Securities, said the combination of lower interest rates, a weaker dollar and strong buying power will support gold in the long run.

Experts from the World Gold Council said investors are pouring money into gold bars and coins as a way to accumulate assets.

According to experts from the World Gold Council, worldwide, gold investment demand in the quarter reached 157 tons, up 56% over the same period last year, but still lower than the average in the past 5 years.

Ms. Louise Street - senior market research expert at the World Gold Council - commented: "Demand for gold has been stable throughout the past year, with good yields under pressure from high interest rates and a strong US dollar.

Our report shows that gold market demand this quarter has remained stable compared to the average of the last 5 years. Looking ahead, with rising geopolitical tensions and forecasts of continued strong central bank purchases, gold demand could exceed expectations.”

According to the World Gold Council (WGC), in Vietnam, gold consumption demand decreased by 1% compared to the same period last year, from 12 tons (Q3/2022) to 11.9 tons in Q3/2023.

This decline is mainly due to a 14% year-on-year decrease in domestic jewelry demand, from 3.5 tonnes in Q3/2022 to 3.0 tonnes in Q3/2023.

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