World gold returns to surpass 2,400 USD/ounce

Investors are almost certain the Fed will keep interest rates unchanged at its meeting tomorrow morning. However, all eyes will be on any signs of a possible rate cut in September.

The meeting of major central banks is the focus of investors this week, expected to impact the global gold and foreign exchange markets. Early tomorrow morning (August 1) Vietnam time, the US Federal Reserve (Fed) will hold a regular press conference to announce its interest rate decision. It is almost certain that the Fed will keep interest rates unchanged at this meeting. However, all eyes will be on any sign of a possible interest rate cut at the next meeting. Forecasts from traders on CME Group still agree on the possibility of the Fed's first interest rate cut in many years to fall in September.

The Bank of Japan (BOJ) is expected to raise interest rates by 10 basis points to 0.1%, which has also supported the Japanese yen (JPY) to strengthen from early July 2024. The yen has risen to over 152.5 yen per dollar, extending its rally ahead of the BOJ's latest monetary policy decision.

Meanwhile, there is still much division over the Bank of England (BOE) interest rate decision. The country's first increase in the policy rate took place at the end of 2021, raising the interest rate from 0.1% to 5.25% at the September 2023 meeting and holding it high for nearly a year.

The world gold price returned to the 2,400 USD/ounce mark last night. Currently, the spot gold price is trading at 2,404 USD/ounce. Nearing the expiration date, the gold futures price for August 2024 delivery on the Comex New York floor also edged up slightly to 2,403.7 USD/ounce.

In line with the world gold price, at the Shanghai Gold Exchange - the world's largest physical gold exchange and also the largest gold trading center in Asia, the gold price this morning also increased to 561 yuan/gram. The gold price on the Shanghai exchange had a fairly good increase in mid-July, at one point jumping to 581 yuan/gram but adjusted last week.

In the domestic market, the price of gold rings also increased at many gold companies, with a common increase of 200,000 VND/tael. At Saigon Jewelry Company (SJC), the price of gold rings was bought at 75.8 million VND/tael while the selling price was 77.2 million VND/tael. At Bao Tin Minh Chau, the buying price of gold rings/Thang Long dragon gold was slightly higher (75.98 million VND/tael), while the selling price was quite similar (77.18 million VND/tael).

For national brand gold bars, the price of gold has not changed after decreasing by half a million VND/tael at the beginning of the week. According to the announcement from the State Bank (SBV), approved by the Governor, the direct selling price of gold bars yesterday decreased to 78 million VND/tael.

Currently, the selling price of gold bars is listed by SJC and 4 banks at 79 million VND/tael. The common buying price of gold bars is 77 million VND/tael. The State Bank of Vietnam (SBV) also affirmed that it will continue to implement the roadmap to narrow and control the difference between the domestic selling price of SJC gold bars and the world price at an appropriate level.

On July 31, the State Bank of Vietnam announced a reduction of 2 VND/USD in the central exchange rate, down to 24,255 VND/USD. With a 5% margin, the ceiling exchange rate is now 25,467 VND/USD. At Vietcombank , the exchange rate is listed at 25,115 VND/USD (buying by transfer) and 25,455 VND/USD (selling), a sharper decrease than the reduction of the central exchange rate and 13 VND/USD below the prescribed ceiling. Many other banks are also "cooling down" the exchange rate.

Source: https://baodautu.vn/vang-the-gioi-tro-lai-vuot-2400-usdounce-d221236.html