On February 12 (the 3rd day of the Lunar New Year), the price of SJC gold maintained at 76.7 – 78.9 million dong per tael, while round gold rings were traded at around 65 – 66 million dong per tael, the highest level ever.
At the same time, the world gold price for spot delivery reached 2,025 USD/ounce, up more than 1 USD/ounce compared to yesterday morning.
Round gold rings are currently at their highest level in history.
The world gold price has risen after the forecast of the US consumer price index (CPI) showed the lowest decrease in nearly 3 years. Specifically, Bloomberg recently forecasted that the core CPI (excluding food and energy prices) in the US in January 2024 increased by 3.7% compared to the same period last year.
The overall CPI index may increase by less than 3% compared to the same period last year. If the actual data corresponds to the forecast, this will be the month with the lowest CPI since April 2021 for the world’s largest economy.
Experts believe that when inflation decreases, the possibility of many US Federal Reserve (Fed) agencies changing their views on monetary policy in the coming months is high.
Earlier, at the end of January meeting, Fed Chairman Jerome Powell said that the Fed was not in a hurry to cut interest rates as early as March as expected. The information Chairman Powell provided was based on employment and US GDP growth figures, which continue to show positive signs. The agency also said that the Fed is monitoring additional economic data to decide on the timing of interest rate cuts.
However, if the inflation report this week is as expected, investors are expected to buy gold again as the expectation of interest rate cuts will reduce borrowing costs.
According to experts, precious metals are currently in an uncertain direction, with gold prices fluctuating slightly around the 50-day moving average. Gold prices could break out if they surpass the resistance level of 2,065 USD/ounce.
Despite the recent decline, the upward momentum is still maintained. The gold market could activate a price increase to 2,085 USD/ounce and even possibly reach 2,150 USD/ounce.
The domestic gold price will resume trading from the 6th day of the Lunar New Year and is predicted to increase sharply if the world price continues to rise. Especially, near the God of Wealth Day, the price of gold rings will set a new record.
