Massive drop after reaching historic peak

The domestic gold price opening today's trading session was listed by DOJI Group at 72.2 million VND/tael for buying; the selling price was 73.7 million VND/tael.

The difference between buying and selling gold prices at DOJI is 1.5 million VND/tael.

Compared to the opening session yesterday, gold price at DOJI decreased by 1 million VND/tael for buying and decreased by 900,000 VND/tael for selling.

Meanwhile, Saigon Jewelry Company listed the buying price of gold at 72.5 million VND/tael; the selling price was 73.7 million VND/tael.

The difference between buying and selling gold prices at Saigon Jewelry Company SJC is 1.2 million VND/tael.

Compared to yesterday's opening session, the gold price at Saigon Jewelry Company SJC decreased by 700,000 VND/tael for both buying and selling.

The difference between buying and selling SJC gold is being widened by trading units. This puts investors at higher risk of loss.

World gold developments. Source: Kitco — World gold price developments. Source: Kitco

World gold price as of 10:35 today, listed on Kitco at 2,044 USD/ounce. Compared to the opening of the previous trading session, world gold price decreased by 2.1 USD/ounce.

Gold prices reacted slightly after the latest report on the strength of the US economy in the third quarter. Data from the US Department of Commerce released on November 29 showed that the country's GDP increased by 5.2% in the third quarter of 2023 (adjusted on an annual basis). This figure is higher than the 4.9% from the preliminary data and also higher than the forecast of 5% increase from economic experts.

Contributing to the growth of US GDP is the increase in fixed investment (excluding housing), which includes buildings, equipment and intellectual property. In the third quarter of 2023, this item grew by 1.3%. In addition, US government spending also contributed to the growth of GDP in the third quarter, with a growth of 5.5%. In contrast, consumer spending was revised down, increasing only 3.6% in the third quarter of 2023, lower than the preliminary estimate of 4%.

Following the GDP report, the yield on the 10-year US Treasury bond fell below 4.3% for the first time since September. The greenback rebounded slightly but still recorded a sharp decline for the entire month of September. The current belief of many investors is that the US Federal Reserve (FED) has completed the monetary tightening process and that interest rate cuts will take place in 2024. This is the main reason for the decline of the USD and the demand for other assets such as gold...

A weaker dollar and lower interest rates following slightly more dovish comments from Fed officials have helped gold rise, said UBS analyst Giovanni Staunovo, who said the next level of resistance could be the record highs set in 2020.

“The prolonged economic uncertainty and the prospect of lower interest rates bode well for gold,” said Ryan McIntyre, senior portfolio manager at Sprott Asset Management.

Gold will also continue to benefit from safe-haven demand due to concerns over geopolitical tensions. Given these factors, SocGen analysts see a push above $2,000 as the start of a broader rally that could see gold prices hover around $2,200 an ounce in 2024.

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