Gold prices in Vietnam continue to rise faster than international gold prices, approaching 79 million VND (3,427 USD) per tael.
At around 9 am this morning (February 7), Phu Quy Group listed SJC gold price for Hanoi market at 76.5 million VND (3,317 USD) per tael (buying) and 78.9 million VND (3,430 USD) per tael (selling). Compared to yesterday morning, the price of SJC gold at this enterprise has increased by 200,000 VND (8.63 USD) per tael for buying and 400,000 VND (17.27 USD) per tael for selling.
Round, smooth 999.9 Phu Quy brand rings are priced at 64.55 million VND (2,797 USD) and 65.65 million VND (2,841 USD) per tael, corresponding to buying and selling prices, increasing by 150,000 VND (6.48 USD) per tael at each end compared to yesterday morning.
In Ho Chi Minh City market, SJC Company listed gold price for gold bars of the same brand at 76.6 million VND (3,321 USD) and 78.8 million VND (3,411 USD) per tael, increasing by 300,000 VND (12.97 USD) per tael at each end.
At the same time, spot gold price in the Asian market stood at 2,034.9 USD per ounce, down 1.5 USD per ounce, equivalent to a decrease of 0.07%, compared to the close of the previous session in the US. This price is equivalent to about 60.2 million VND (2,601 USD) per tael if converted at the selling exchange rate at Vietcombank.
Compared to yesterday morning, the converted world gold price has increased by 200,000 VND (8.63 USD) per tael.
Compared to the converted world gold price, the retail price of SJC gold bars is currently about 18.6-18.7 million VND (804-810 USD) per tael higher.
In Tuesday’s session in New York market, spot gold price increased by about 10 USD per ounce, equivalent to an increase of 0.5%, closing at over 2,036 USD per ounce. This rebound reversed the decline in Monday’s session, when gold price fell to the lowest level in a week under pressure from the strengthening US dollar, which rose to the highest level in 12 weeks, and the yield on 10-year US Treasury notes rose to nearly 4.17%.
In this session, the Dollar Index, which measures the strength of the US dollar against a basket of 6 major currencies, closed at over 104.2 points, down from 104.4 points in the previous session. The yield on 10-year US Treasury notes also fell to 4.1%.
This week, at least 8 Fed officials will speak about interest rate prospects. The market expects these officials to reiterate that March is too early to begin easing, that inflation needs to continue to decline for interest rate cuts to get underway – according to strategist Daniel Ghali of TD Securities.
“We expect gold prices to remain steady in the coming sessions, and the release of the US consumer price index (CPI) report next week could become a catalyst for gold price increases. We believe that inflation will continue to weaken and gold prices will positively respond to that,” Mr. Ghali said.
In her statement on Tuesday, Cleveland Fed branch President Loretta Mester said if the US economy performs as she expects, the door to interest rate cuts will be opened. However, Mester also said she is not ready to discuss the timing of monetary policy easing as inflation remains volatile.
Gold prices are still facing considerable downward pressure as the market is no longer betting on the possibility of the Fed starting rate cuts in March. After the Fed’s meeting last week and much better-than-expected job figures released on Friday, investors now believe that the Fed may have to wait until May or June to cut rates.
“Bullish gold investors are encountering the stumbling block that US economic data is better than expected. Gold prices have to decline because the market continues to bet on the possibility of the Fed cutting interest rates in March,” said analyst Han Tan of Exinity Group.
“Gold prices will rise when the Fed gets closer to rate cuts. However, if the Fed is forced to postpone the shifting of policy to soft, gold prices in the medium term will not retain part of the recent gains,” Mr. Tan told Reuters.
In a sign that investors are somewhat pessimistic about gold price prospects, the world’s largest gold exchange-traded fund (ETF) SPDR Gold Trust sold about 4 tonnes of gold on Tuesday, reducing holdings to 847.7 tonnes. Since the beginning of the year, this fund has almost only sold gold.
