High interest rates, risk of gold price decline

Domestic gold price today October 30, 2023

At the end of the session on October 28, the price of 9999 gold bars at SJC Ho Chi Minh City was 70.15 million VND/tael (buy) and 70.95 million VND/tael (sell). SJC Hanoi listed at 70.15 million VND/tael (buy) and 70.97 million VND/tael (sell).

DOJI Hanoi listed at 70.1 million VND/tael (buy) and 71 million VND/tael (sell). DOJI Ho Chi Minh City bought SJC gold at 70 million VND/tael and sold at 71 million VND/tael.

International gold price today October 30, 2023

Gold price on Kitco floor at 8:00 p.m. on October 28 (Vietnam time) was trading at 2,005 USD/ounce.

gold price today.jpg — *The risk of world gold prices falling due to the Fed continuing to maintain high interest rates. (Photo: Bloomberg)*

The global gold market has seen strong buying power over the past two weeks. Investors’ demand for safe havens has increased amid tensions in the Middle East. Gold prices have increased for the third consecutive week.

According to experts, in addition to the conflict in the Middle East, investors should monitor the developments in the Fed's monetary policy stance.

According to the CME FedWatch Tool, the market seems certain that the Fed will keep interest rates unchanged at 5.25% to 5.5% at this meeting. At the same time, the Fed is expected to maintain restrictive monetary policies for the foreseeable future.

Some analysts warn that investors should be careful with gold prices in the $2,000/ounce range as the market could adjust lower based on the Fed's monetary policy stance, which could keep interest rates high for a longer period.

The Fed’s hawkish stance on interest rates could lead investors to avoid gold-backed exchange-traded products, which could weigh on gold prices in the near term, said Ole Hansen, commodity strategist at Saxo Bank. In addition, gold prices could fall due to profit-taking by investors.

Gold Price Forecast

Last week, 11 Wall Street analysts participated in the Kitco News gold survey. Fifty-five percent of experts said they expected higher prices, another 27 percent said they expected lower prices, and the remaining 18 percent said they expected sideways prices.

Meanwhile, 602 votes were cast in online polls. Of these, 395 retail investors, or 66%, expect gold to rise in the coming period. Another 126, or 21%, predict prices will fall, while 81 respondents, or 13%, believe gold prices will remain flat.

Gold price today October 29, 2023: Demand for shelter, gold skyrocketed Gold price today October 29 on the world market increased again, while domestic gold price reached 71 million VND/tael.

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