The world gold price set a new record in trading on Friday (March 8), approaching the $2,100/oz threshold, as US unemployment rates rose, increasing expectations that the Federal Reserve would cut interest rates. Today (March 9), the domestic gold price also reached its all-time high, with ring prices reaching VND 82 million/ounce and bracelet prices surpassing VND 70 million/ounce.
Closing the session in New York, spot gold prices ended the Friday session at $2,179.6/oz, up $19.2/oz, or nearly 0.9%, compared to the closing price of the previous session – according to data from Kitco exchange. This price is equivalent to VND 65.2 million/ounce if converted at the selling rate in Vietcombank.
Compared to yesterday, the world gold price has increased by VND 500,000/ounce. This week, the world gold price has increased by VND 3 million/ounce. In the domestic market, the selling price of the SJC gold piece has increased by about VND 1.4 million/ounce, while the selling price of the ring gold has increased by about VND 3 million/ounce.
This afternoon, Phu Quy Group listed the selling price of the SJC gold piece for the Hanoi market at VND 79.6 million/ounce (buying) and VND 82 million/ounce (selling). Compared to yesterday morning, the selling price of the SJC gold piece at this company has decreased by VND 200,000/ounce for buying but increased by VND 200,000/ounce for selling.
The smooth round ring 999.9, Phu Quy brand, has a price of VND 69.4 million/ounce and VND 70.7 million/ounce, respectively, for buying and selling, increasing by VND 1.8 million/ounce at each price end.
Bao Tin Minh Chau Company listed the selling price of the round and smooth ring 999.9, Dragon Thang Long brand, at VND 69.48 million/ounce and VND 70.78 million/ounce, increasing by VND 1.7 million/ounce and VND 1.8 million/ounce, respectively, compared to yesterday morning.
In Ho Chi Minh City market, SJC Company listed the selling price of the gold piece of the same brand at VND 79.5 million/ounce and VND 82 million/ounce, respectively, decreasing by VND 200,000/ounce and increasing by VND 300,000/ounce compared to yesterday morning. The SJC round ring has a price of VND 68.3 million/ounce (buying) and VND 69.55-69.65 million/ounce (selling) depending on the weight of the product, increasing by VND 1.3 million/ounce at each price end compared to yesterday morning.
This week, the world gold price has continuously set new records, and the closing price on Friday is the highest closing price ever seen. In the session, spot gold prices hit an all-time high of over $2,195/oz, according to data from Kitco. Gold prices began to “break” the old record set in December last year on Tuesday.
In the afternoon session on Friday, gold prices received a new boost from the US employment report.
Data from the US Department of Labor showed that the number of new non-farm jobs in the country in February exceeded expectations, reaching 275,000 new jobs compared to the forecasted 198,000 new jobs by economists in a survey conducted by Dow Jones. This figure is a signal that the economy may still be growing hot.
However, on the other hand, the unemployment rate unexpectedly increased slightly to 3.9% – due to more people actively seeking employment – and wage growth was weaker than expected. These are signs that inflation has decreased enough to convince the Fed to start cutting interest rates. In addition, the job growth rate for January has also been revised down from the initial announcement.
This week, gold prices benefited greatly from investors’ increasing bets that the Fed will cut interest rates in June. This expectation has been pushed back compared to the early-year forecast that the Fed will begin cutting interest rates this spring. However, analysts believe that the Fed’s increasingly closer pivot is bringing important support to the precious metal market.
Throughout the week, spot gold prices have increased nearly $100/oz, equivalent to an increase of about 4.8%, marking the strongest weekly increase since October last year.
“We believe that this price hike premise of gold will be maintained. It is a combination of expectations that the Fed will cut interest rates this year and the weakness of the USD,” said David Meger, director of precious metal trading at High Ridge Futures.
The Dollar Index, which measures the strength of the USD against a basket of 6 major currencies, closed the Friday session with a decrease of nearly 0.1%, still above 102.7 points. Along with that, the 10-year US silver bond yield dropped to its lowest level in over 1 month.
After the US employment report was released, the likelihood that the Fed will cut interest rates in June according to investors’ bets on the futures interest rate market increased slightly to 73% – according to data from the CME’s FedWatch Tool. Along with that, the likelihood that the Fed will raise interest rates in May also increased to about 30%.
“The employment report is seen as a data point that will lead the Fed to cut interest rates in June. The gold price will continue to rise higher, but a short-term consolidation phase may be necessary,” said Tai Wong, an independent precious metals trader in New York.
The world’s largest gold exchange-traded fund (ETF), the SPDR Gold Trust, continued its net sales. An additional 1.5 tons of gold was sold in Thursday’s session, reducing the amount held by this “shark” fund to over 815.1 tons of gold. This week, the fund has sold more than 8.5 tons of gold, after selling 28 tons of gold in the previous 4 weeks.
