The world gold price reached a historic high in the trading session on Tuesday (March 5) when it continued to rise above the $2,100/oz threshold. The domestic gold price this morning (March 6) also set a new record for both bullion and gold rings.
Closing the trading session in New York, spot gold price rose $16/oz, equivalent to an increase of about 0.7%, closing at $2,128.3/oz. During the session, the gold price reached a peak of $2,142/oz.
Gold futures rose 0.7%, closing at $2,141.9/oz, breaking the old record of over $2,135/oz set in December last year.
At around 9 am this morning, according to Vietnamese time, the world gold price slightly decreased. According to data from the Kitco exchange, spot gold price in the Asian market decreased by $2.7/oz, equivalent to a decrease of about 0.13%, compared to the New York closing, at $2,125.6/oz.
This price is equivalent to about 63.7 million VND/tael if converted at the selling exchange rate of USD at Vietcombank, an increase of 500,000 VND/tael compared to yesterday morning.
At nearly 9 am in Hanoi market, Phu Quy Group listed the SJC bullion gold price for the Hanoi market at 79 million VND/tael (buying) and 81 million VND/tael (selling), an increase of 200,000 VND/tael on both sides compared to the same time yesterday morning.
In Ho Chi Minh City market, SJC Company listed the bullion gold price with the same brand at 79 million VND/tael and 81 million VND/tael, corresponding to buying and selling prices, an increase of 100,000 VND/tael on both sides compared to yesterday morning.
This is the highest price ever for bullion gold, although the domestic gold price is increasing slower than the international price. In the past two days, bullion gold price has increased by about 900,000-1 million VND/tael, while the converted international gold price has increased by 1.5 million VND/tael. The price of 999.9 gold rings increased by about 600,000-700,000 VND/tael in 2 days.
Similarly, the price of gold rings also set a new record, but the rate of increase is slower than previous days.
Phu Quy’s round rings had prices of 67.2 million VND/tael (buying) and 68.5 million VND/tael (selling), an increase of 100,000 VND/tael on both sides compared to yesterday morning.
Rong Thang Long’s round rings were listed by Bao Tin Minh Chau company at 67.43 million VND/tael (buying) and 68.63 million VND/tael (selling), an increase of 50,000 VND/tael on both sides.
SJC round rings had prices of 66.6 million VND/tael for buying in the afternoon and 67.8-67.9 million VND/tael for selling in the afternoon, depending on the weight of the product, an increase of 150,000 VND/tael compared to yesterday morning.
Compared to the converted international gold price, the retail SJC bullion gold price is higher by 17.3 million VND/tael, while the gold ring price is higher by 4.2-4.9 million VND/tael.
The domestic gold price continues to be supported by the upward trend of the international gold price and the increasing demand for gold in the country amid scarce supply.
Regarding international gold, it is being driven by investors increasing bets on the possibility that the U.S. Federal Reserve (Fed) will begin cutting interest rates in June. In addition, ongoing geopolitical tensions in the Middle East are also beneficial for gold – a safe haven investment.
“The important reason why gold prices are rising is that we are seeing a market that increasingly believes that the Fed is getting closer to cutting interest rates,” said Bart Melek, chief strategist at TD Securities. “Gold prices may be difficult to increase much further in the short term, but I believe that in the second quarter, gold prices may surpass the $2,300/oz threshold,” Melek said.
According to data from the CME exchange’s FedWatch Tool, the likelihood of the Fed cutting interest rates in June is currently at 70%, compared to less than 70% last week.
The likelihood of Fed action in June increased after U.S. economic data released on Tuesday showed signs of slowing growth. Specifically, the growth rate of the service sector slowed more than expected and the number of new orders received by factories also declined more sharply than expected.
Since the Israel-Hamas war broke out in Gaza in October last year, the world gold price has now risen by more than $300/oz.
“The ongoing geopolitical risks in the Red Sea and a year of heavy global elections will be a source of strength for the investment demand for gold from individual investors,” said strategist Nitesh Shah of Wisdom Tree. “We wouldn’t be surprised if gold gives up some of its recent price gains because the Fed will try to rule out the possibility of an early interest rate cut. But once interest rate cuts become more certain, gold prices will rise much higher.”
Fed Chairman Jerome Powell will testify before the U.S. Congress on monetary policy issues on Wednesday and Thursday of this week. Afterward, the U.S. Labor Department will release the February employment report on Friday.
The USD exchange rate on the international market is stable, with the Dollar Index fluctuating weakly between 103.8-103.9 points.
