Investors are stepping up their stockpiling activities.

Gold price update at the close of trading on November 3rd: Investors intensify their hoarding activities. — Geopolitical concerns remain a central factor influencing gold prices in the coming period. (Illustration: Phan Anh)

Domestic gold prices

Source: Rong Viet Online Services Joint Stock Company (VDOS).

Domestic gold price trends

Trends in world gold prices

Global gold prices remained stable amid a continued decline in the US dollar. At 6:00 PM, the US Dollar Index, which measures the dollar's fluctuations against six major currencies, stood at 105.802 points (down 0.16%).

Global gold prices have not broken through despite difficulties in the US labor market. The number of initial jobless claims increased more than expected. Specifically, the US Department of Labor reported that the weekly number of jobless claims rose to 217,000, an increase of 5,000 from the previous week . Not only has the number of initial claims increased, but laid-off workers are also facing difficulties finding new jobs. The total number of claims has risen to 1.818 million.

Notably, oil prices – a commodity closely related to precious metals – are also heading for a second consecutive week of declines. Specifically, oil prices in Asian markets showed little fluctuation during the final trading session of the week on November 3rd, but are heading for a second consecutive week of losses due to concerns about shrinking supply caused by conflicts in the Middle East.

Meanwhile, Asian stock markets are on track for their biggest weekly gain since the beginning of the year, while bonds are rising and the US dollar is cooling down as investors rejoice at the US pausing interest rate hikes.

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

Experts at the World Gold Council believe that investors are pouring money into gold bars and coins as a way to accumulate wealth.

According to experts from the World Gold Council, global demand for gold investment in the quarter reached 157 tons, a 56% increase compared to the same period last year, but still lower than the average over the past five years.

Louise Street, senior market researcher at the World Gold Council, commented: “Gold demand has been stable throughout the past year, with good yields against pressure from high interest rates and a strong US dollar.”

Our report indicates that gold market demand this quarter remained stable compared to the five-year average. Looking ahead, with rising geopolitical tensions and forecasts of continued strong gold purchases by central banks, 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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