Heavy losses, investors face risks

Updated gold price at the end of session 4.2. Illustration photo: Tung Giang

Domestic gold price

Update domestic gold price on the morning of February 4, 2024.

Domestic gold price developments. Unit: Million VND/tael. Graphics: Khuong Duy

Overall, domestic gold prices increased sharply last week, however, the difference between buying and selling gold last week was too high, causing investors to suffer losses.

Specifically, if buying gold at DOJI Group on January 28 at VND76.65 million/tael and selling it today (February 4), investors will lose VND700,000/tael. Meanwhile, those who bought gold at Saigon Jewelry Company SJC also lost VND1.1 million/tael.

The current difference between buying and selling gold prices is listed at 2.3 million VND/tael. This difference is considered very high. Investors face the risk of loss when businesses push the risk onto buyers.

World gold price

World gold price developments. Unit: USD/ounce. Chart: Phan Anh

Gold Price Forecast

World gold fell amid a strong increase in the USD. At 5:00 p.m., the US Dollar Index, which measures the greenback's fluctuations against six major currencies, stood at 103.825 points (up 0.93%).

According to the CME Fed Watch tool, investors now see a 78% chance of a rate cut by May 2024, down from a 92% chance before the Labor Department data. Lower interest rates increase the appeal of the precious metal.

Kitco News' latest weekly gold survey shows that, with two-thirds of experts losing confidence in the precious metal, 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 turned decidedly bearish on the precious metal’s near-term outlook. Only two analysts, or 17%, see gold prices rising next week. Eight analysts, or 66%, see prices falling. Another two analysts, or 17%, see gold prices trading sideways next week.

Meanwhile, 123 votes were cast in Kitco’s online poll, with the majority remaining bullish. Sixty-six retail investors, or 54 percent, expect gold to rise next week. Another 27, or 22 percent, expect prices to fall. Meanwhile, 30 respondents, or 24 percent, are neutral on the precious metal’s near-term outlook.

Source: https://laodong.vn/tien-te-dau-tu/cap-nhat-gia-vang-chot-phien-42-lo-nang-nha-dau-tu-doi-dien-rui-ro-1301049.ldo