Gold prices set a new record in Friday’s trading session, nearing the $2,200/oz mark, as the US unemployment rate rose, increasing expectations that the Federal Reserve (Fed) will soon cut interest rates. Domestic gold prices today (March 9) also reached an all-time high, with gold rings reaching 82 million VND/tael and gold necklaces surpassing 70 million VND/tael.
Closing at the New York market, 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 trading session – according to data from Kitco. This price is equivalent to more than 65.2 million VND/tael if converted at the selling exchange rate at Vietcombank.
Compared to yesterday, the converted world gold price has increased by 500,000 VND/tael. This week, the converted world gold price has increased by 3 million VND/tael. In the domestic market, retail SJC gold prices increased by about 1.4 million VND/tael, while retail gold ring prices increased by about 3 million VND/tael.
At noon today, Phu Quy Group listed SJC gold prices for the Hanoi market at 79.6 million VND/tael (buying) and 82 million VND/tael (selling). Compared to yesterday morning, the SJC gold price at this enterprise is currently reduced by 200,000 VND/tael in buying direction and increased by 200,000 VND/tael in selling direction.
Phu Quy’s 999.9 pure gold ring is priced at 69.4 million VND/tael and 70.7 million VND/tael, for buying and selling, respectively, an increase of 1.8 million VND/tael on each end of the price.
Bao Tin Minh Chau Company quoted the price of the 999.9 pure gold ring under Rong Thang Long brand at 69.48 million VND/tael and 70.78 million VND/tael, an increase of 1.7 million VND/tael and 1.8 million VND/tael compared to yesterday morning.
In the Ho Chi Minh City market, SJC Company quoted gold bars of the same brand at 79.5 million VND/tael and 82 million VND/tael, a decrease of 200,000 VND/tael and an increase of 300,000 VND/tael compared to yesterday morning. SJC gold ring is priced at 68.3 million VND/tael (buying) and 69.55-69.65 million VND/tael (selling) depending on the weight of the product, an increase of 1.3 million VND/tael on each end of the price compared to yesterday morning.
World gold prices have continuously set records this week, and the closing price on Friday is the highest closing price ever seen. During the session, spot gold prices reached an all-time high of over $2,195/oz, according to data from Kitco. Gold prices began “breaking” the previous record set in December last year on Tuesday.
On Friday’s session, gold prices received a new boost from the US employment report.
Data from the US Labor Department showed that the number of new jobs in the country’s non-farm sector in February surpasses expectations, reaching 275,000 new jobs compared to the forecast of 198,000 new jobs given by economists in a survey 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 searching for jobs – and wage growth was weaker than expected. These are signs that inflation has decreased enough to convince the Fed to begin cutting interest rates. In addition, January’s job growth rate was also revised down from the initial announcement.
This week, gold prices benefited greatly from increased bets by investors that the Fed will cut interest rates in June. This expectation has moved back from the early-year forecast that the Fed will start cutting interest rates this spring. However, analysts believe that the Fed’s increasing proximity to a turning point is bringing important support to the precious metals market.
During the week, spot gold prices increased by nearly $100/oz, equivalent to about 4.8%, marking the strongest increase since October last year.
“We believe that this premise for higher gold prices 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 metals trading at High Ridge Futures.
The Dollar Index, which measures the strength of the USD against a basket of 6 other major currencies, closed Friday’s session with a decrease of nearly 0.1%, to above 102.7 points. Along with that, the yield of the 10-year US Treasury bonds fell to the lowest level in over a month.
After the release of the US employment report, the likelihood of the Fed cutting interest rates in June according to investors’ bets on the future interest rate market increased slightly to 73% – according to data from the FedWatch Tool of the CME. Along with that, the likelihood of the Fed raising interest rates in May also increased to about 30%.
“The job report is seen as a data point that will lead the Fed to cut interest rates in June. Gold prices will continue to rise further, but a short-term consolidation phase may be necessary,” said independent precious metals trader Tai Wong in New York.
The largest gold exchange-traded fund (ETF) in the world, the SPDR Gold Trust, continued to sell. Selling about 1.5 tons of gold in Thursday’s session, reducing the holding volume of 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.
