Gold bars at the Czech National Bank in Prague. Photo: AFP/VNA
As of 00:45 April 20, Vietnam time, spot gold rose 0.7 percent to 2,395.15 USD/ounce, having hit 2,417.59 USD/ounce at one point in the session. The yellow metal’s price has increased 2.2 percent this week. US gold futures also rose 0.7 percent in the session on April 19 to $2,413.8 an ounce.
David Meger, director for metal dealings at High Ridge Futures, said the volatile situation in the Middle East has influenced the gold market. If the tension is brought under control, the price of gold will decline or stagnate because demand for a “safe haven” will be exhausted.
Fed officials have reached a consensus that there is no urgency to cut interest rates. The market is now speculating that there is a 67 percent chance the Fed will cut interest rates in September 2024. Higher interest rates make holding non-interest-bearing assets like gold less desirable.
Research firm Antaike predicted that gold, which has already seen a strong rise this year, will continue to increase because of strong demand from China and macro instability.
Tensions in the Middle East have boosted the global price of gold since the beginning of the week on April 15. On April 16, the global price of gold remained stable due to demand for safe assets amidst the continued crisis across the Middle East and despite the fact that the number of times the Fed cuts interest rates this year may be lower than previously expected.
Decreasing demand led to a decline in the price of gold on April 17, but it subsequently increased on April 18, as the ongoing tensions in the Middle East increased the desirability of the yellow metal, despite strong economic data from the US.
Everett Millman, a market analyst for Gainesville Coins, said that if tensions continue to rise in the Middle East, the price of gold could climb to 2,500-2,600 USD/ounce, though if a “ceasefire” is reached, the price could go down to 2,200 USD/ounce.
On the other precious metal market, spot silver increased 1.6 percent on April 19 to 28.66 USD/ounce. Meanwhile, spot platinum decreased 0.4 percent to 931.22 USD/ounce, and spot palladium decreased 0.6 percent down to 1,016.91 USD/ounce. HSBC lowered its average price forecast for 2024 for platinum from 1,105 USD/ounce to 1,055 USD/ounce and for palladium from 1,138 USD/ounce to 1,095 USD/ounce.
