Gold prices reached their highest level in a month as the US dollar weakened after the US released inflation data that matched analysts’ expectations. The price of gold in the domestic market is hovering around 80 million dong per ounce, while the price of gold rings continues to rise to the highest level ever.
At nearly 9 am today (March 1), the round gold ring 999.9 Hiệu Phú Quý offered by Phú Quý Group for the Hanoi market is priced at 65.45 million dong per ounce (buying) and 66.55 million dong per ounce (selling), an increase of 200,000 dong per ounce at each price compared to the same period yesterday.
The Rồng Thăng Long round ring of Bảo Tín Minh Châu Company has a price of 65.38 million dong per ounce and 66.48 million dong per ounce, corresponding to the buying and selling prices, respectively, remaining unchanged compared to the end of yesterday afternoon but increasing by 50,000 dong per ounce compared to yesterday morning.
In Ho Chi Minh City market, SJC Company quotes the price of gold rings at 64.25 million dong per ounce (buying) and 65.45-65.55 million dong per ounce (selling), depending on the weight of the product, increasing by 50,000 dong per ounce at each price compared to yesterday morning.
The price of gold rings has been continuously setting new records in recent days and is at its highest level in history. Increasing demand and limited supply are the reasons why gold ring prices have been pushed up, according to gold traders.
Although gold bullion has not set a new record yet, its price has fluctuated significantly in the range of 79-80 million dong per ounce in recent days.
In the early hours of this morning, Phú Quý listed the price of SJC gold bullion at 77.7 million dong per ounce (buying) and 79.6 million dong per ounce (selling), an increase of 100,000 dong per ounce compared to yesterday morning. Bảo Tín Minh Châu quoted the price of SJC gold bullion at 77.65 million dong per ounce and 79.45 million dong per ounce, increasing by 100,000 dong per ounce and 50,000 dong per ounce, respectively.
In Ho Chi Minh City, SJ Company listed the price of gold bullion with the same brand at 77.6 million dong per ounce and 79.6 million dong per ounce, reducing by 400,000 dong per ounce compared to the early hours of yesterday morning.
At the same time, the spot gold price in the Asian market stood at $2,043.4/ounce, decreasing by $1/ounce, equivalent to a decrease of nearly 0.05%, compared to the closing of the overnight session in the US – according to data from Kitco exchange.
In Thursday’s session in New York, the spot gold price increased by $9/ounce, equivalent to an increase of nearly 0.5%, compared to the previous session, closing at $2,044.4/ounce. This is the highest closing price of spot gold since the beginning of February.
Data released on the same day showed that the inflation measure preferred by the US Federal Reserve (Fed) remained higher than the central bank’s target, but investors were not overly concerned as the index did not exceed the earlier forecasts from themselves and analysts. Therefore, the market did not push back expectations for the time when the Fed could begin to cut interest rates, keeping this expectation until June.
According to the US Department of Commerce, the Personal Consumption Expenditures (PCE) index for January increased by 0.4% compared to the previous month and by 2.8% compared to the same period last year. Both the month-to-month and year-over-year increases are in line with the forecasts made by the economists in a survey by Dow Jones. The core PCE – the index excluding energy and food prices – increased by 0.3% for the month and by 2.4% for the year, also in line with the forecast. The Fed’s inflation target for the year is 2%.
The US dollar weakened after this report was released, closing below 104.2 points.
“Gold speculators looking to push up prices need a reason to buy gold, and they have found it,” Tai Wong, an independent analyst in New York, said to Reuters. “However, with the monthly PCE increase still at 0.4%, there will be no chance of the Fed cutting interest rates before June.”
According to Mr. Wong, the gold price is facing a strong technical resistance at $2,065/ounce.
Data from the FedWatch Tool of the CME exchange shows that there is a 62% chance that the Fed will cut interest rates at the June meeting.
Some Fed officials speaking this week have left open the possibility of interest rate cuts this year, but signaled that rates will not be cut in the first half of the year.
“The statements from Fed officials all show that they are in no rush to lower interest rates, and this has been reflected in asset prices in the market. If there is any signal now that the Fed will cut interest rates earlier than current expectations, the gold price will have a chance to break out,” said David Meger, Director of Precious Metals Trading at High Ridge Futures.
At more than 9 am today, Vietcombank quoted the USD at 23,450 dong (buying) and 23,820 dong (selling), an increase of 20 dong at each price compared to yesterday morning.
With the selling USD exchange rate as above, the current price of gold in the world is equivalent to about 61.1 million dong per ounce, increasing by 200,000 dong per ounce compared to yesterday morning.
Although gold prices have risen, gold exchange-traded funds (ETFs) continue to sell off. On Thursday, the world’s largest gold ETF, SPDR Gold Trust, sold an additional 2.4 tons of gold, reducing its holdings to 822.9 tons of gold. In two consecutive sessions, the fund has sold 4.7 tons of gold.
