The world gold price started the new trading week on a downward trend, causing the domestic gold price this morning (March 18) to also decrease. Gold buyers who bought at the peak last week are currently losing about 3 million dong per tael.
At around 10 a.m., Phu Quy Group listed the SJC gold price for the Hanoi market at 79.5 million dong/tael (buying) and 81.4 million dong/tael (selling). Compared to the closing price on Sunday, the SJC gold price at this company has decreased by 200,000 dong/tael at both ends of the price range.
The 999.9 round Phu Quy gold ring is priced at 67.9 million dong/tael and 69.1 million dong/tael, corresponding to the buying and selling prices, respectively, a decrease of 200,000 dong/tael and 300,000 dong/tael compared to the end of the week.
Bao Tin Minh Chau Company quoted the price of the round Dragon Long 999.9 ring at 67.92 million dong/tael and 69.12 million dong/tael.
In the Ho Chi Minh City market, SJC Company quoted the price of the gold piece under the same brand at 79.5 million dong/tael and 81.5 million dong/tael.
The SJC round ring has a buying price of 67.35 million dong/tael and a selling price of 68.55-68.65 million dong/tael depending on the weight of the product.
At the same time, the spot gold price in the Asian market is $2,152.7/oz, down $3.9/oz, or 0.18%, compared to the closing of the previous week in the New York market – according to data from Kitco exchange.
Converted at the selling exchange rate of USD at Vietcombank, this price level is equivalent to nearly 64.6 million dong/tael, a decrease of over 100,000 dong/tael compared to the end of the week.
Last week, the retail selling price of gold soared to 82.2 million dong/tael for the piece and 71.4 million dong/tael for the ring. If sold this morning, gold buyers who bought at the peak are currently losing about 2.7 million dong/tael for the piece and 3.5 million dong/tael for the ring.
The world gold price is also falling well below the record level of nearly $2,200/oz set more than 1 week ago. International gold market investors are becoming more cautious as this week there are policy meetings of a series of major central banks, including the Bank of Japan (BOJ), the Reserve Bank of Australia (RBA), the US Federal Reserve (Fed), the Swiss National Bank (SNB), and the Bank of England (BOE).
Statements from these meetings can cause exchange rate fluctuations between currencies and the prices of assets worldwide. Gold is an asset with particularly high sensitivity to monetary policy, because gold does not carry interest. Recently, the prospects of major central banks – except the BOJ – starting to cut interest rates this year have played a role in driving the gold price to take off.
If at this meeting, the Fed signals continued caution in reducing interest rates, the gold price may be at a disadvantage. However, any signal from the Fed that maintains the intention of cutting interest rates from June can provide a boost to the precious metal market.
Michele Schneider, the research director of MarketGauge, believes that the short-term outlook for the gold price is still up as the price is able to maintain the key support level of $2,150/oz.
Regarding this week’s Fed meeting, Schneider predicts that the central bank will continue to adopt a somewhat neutral position that leans towards caution, meaning that it will still signal interest rate cuts this year, but also remind that all decisions will still depend on economic data.
“In the current context, anything that implies an imminent interest rate cut will be a factor driving up the gold price. Until there is further evidence of inflation picking up, the Fed will stick to its plan. They will consider reducing interest rates, and whether the interest rate cuts will start in June or July is not the issue. The issue is that interest rates will decrease,” Schneider told Kitco News.
With a contrary view, Ole Hansen – Chief Strategist at Saxo Bank – is pessimistic about the short-term prospects of the gold price.
“The gold price may decrease for the second consecutive week, with the risk of a deeper correction, as hedge funds liquidate speculative gold futures contracts. This is the biggest risk to the gold price at the moment, especially after reports of US inflation being hotter than expected last week raised the possibility of Fed delaying interest rate reductions,” Hansen said.
Last week, the world gold price decreased by 0.8%, the domestic gold price decreased by about half a million dong/tael, while the gold ring price decreased by about 1.4 million dong/tael.
