Heavy losses despite gold breakout

Gold price today 4.2: Heavy losses despite gold's breakout — Gold price today 4.2. Illustration photo: Phan Anh

The domestic gold price opening today's trading session (February 4) was listed by DOJI Group at 75.95 million VND/tael for buying; the selling price was 78.25 million VND/tael.

Compared to the closing price of last week's trading session, gold price at DOJI increased by 2.05 million VND/tael for buying and increased by 1.6 million VND/tael for selling.

The difference between buying and selling prices of SJC gold at DOJI decreased from 2.75 million VND/tael to 2.3 million VND/tael.

Meanwhile, Saigon Jewelry Company listed the buying price of gold at 75.6 million VND/tael; the selling price was 78.1 million VND/tael.

Compared to the closing price of last week's trading session, the gold price at Saigon Jewelry Company SJC increased by 1.4 million VND/tael for both buying and selling.

The difference between buying and selling price of SJC gold is at 2.5 million VND/tael.

Gold prices increased sharply, 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.

Currently, the difference between buying and selling gold in the country is still considered too large. This can put buyers at risk of losing money when investing.

Domestic gold price movements last week. Unit: Million VND/tael. Graphics: Khuong Duy

The world gold price closed the trading session of the week listed on Kitco at 2,039.7 USD/ounce, up 10.5 USD/ounce compared to the closing price of the previous trading session.

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

Gold Price Forecast

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 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 turned decidedly bearish on the precious metal’s near-term outlook. Only two analysts, or 17%, see gold prices rising next week, while 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, predict lower prices. Meanwhile, 30 respondents, or 24 percent, are neutral on the precious metal’s near-term outlook.

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