Heading for a third consecutive week of gains

Gold price update at the close of trading on December 1st. (Illustrative image: Phan Anh)

Domestic gold prices

Domestic gold prices closed the trading session on December 1st.

Domestic gold price trends

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

Trends in world gold prices

Source: Kitco

Global gold prices rose amid a weakening US dollar. At 6:20 PM on December 1st, the US Dollar Index, which measures the dollar's fluctuations against six major currencies, stood at 103.325 points (down 0.11%).

Gold prices reversed course and rose amid a recovery in oil prices – a commodity closely linked to the precious metal – after a sharp decline earlier in the trading session on December 1st. Brent crude futures for February 2024 delivery rose 0.1% to $80.92 per barrel (recorded at 3:20 PM). West Texas Intermediate (WTI) crude also rose 0.2% to $76.13 per barrel.

OPEC+, the group of producers accounting for 40% of the world's oil output, is focusing on cutting production as prices have fallen from around $98 a barrel in late September. Saudi Arabia, Russia, and other OPEC members have agreed to voluntary oil production cuts of nearly 2 million barrels per day in the first quarter of 2024.

Gold also received support as major Asian stock markets mostly declined on the afternoon of December 1st.

Global gold prices are heading for a third consecutive weekly gain after data showing cooling inflation bolstered bets on the likelihood of the US Federal Reserve (FED) cutting interest rates.

Matt Simpson, a senior analyst at financial firm City Index, suggests that if traders previously predicted the Fed would cut interest rates in 2024, they now believe that expectation even more strongly, following a slightly smaller increase in US personal consumption expenditures (PCE). This development is clearly beneficial for gold.

Data released on November 30 showed that US consumer spending increased moderately in October, while recording the lowest annual inflation rate in more than two and a half years.

Traders have increased their bets on the likelihood of the Fed beginning to cut interest rates, from an 80% chance in May 2024 to 50% in March.

Source: https://laodong.vn/tien-te-dau-tu/cap-nhat-gia-vang-chot-phien-112-huong-den-tuan-tang-thu-3-lien-tiep-1274629.ldo