Domestic gold prices
Overall, domestic gold prices rose sharply last week; however, the buy-sell spread was too high, causing investors to suffer losses.
Specifically, if an investor bought gold at DOJI Group on January 28th at 76.65 million VND/ounce and sold it today (February 4th), they would incur a loss of 700,000 VND/ounce. Meanwhile, those who bought gold at Saigon Jewelry Company (SJC) would also lose 1.1 million VND/ounce.
The current difference between the buying and selling price of gold is listed at 2.3 million VND per tael. This difference is considered very high. Investors face the risk of losses as businesses shift the risk to buyers.
World gold prices
Gold price forecast
Global gold prices fell amid a strong rise in the US dollar. At 5:00 PM, the US Dollar Index, which measures the dollar's fluctuations against six major currencies, stood at 103.825 points (up 0.93%).
According to the CME Fed Watch tool, investors now forecast a 78% probability that the US will cut interest rates in May 2024, lower than the 92% probability forecast before the release of data from the US Department of Labor. Lower interest rates increase the attractiveness of this precious metal.
Kitco News' latest weekly gold survey shows that two-thirds of experts have lost confidence in the precious metal, while most retail investors still expect prices to rise next week.
Twelve analysts participated in the Kitco News Gold Survey, and Wall Street sentiment appears to have shifted significantly to bearish on the short-term outlook for the precious metal. Only two experts (17%) predicted higher gold prices next week, while eight analysts (66%) predicted lower prices. Two others (17%) predicted sideways movement next week.
Meanwhile, 123 votes were cast in Kitco's online polls, with the majority maintaining an optimistic outlook. 66 retail investors (54%) expect gold to rise next week. Another 27 (22%) predict lower prices. Meanwhile, 30 respondents (24%) held a neutral view on the short-term outlook for the precious metal.
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