Gold Prices Fluctuate as Investors Await Key US Economic Data
Global gold prices saw modest fluctuations as investors braced for the release of important U.S. economic reports. Domestic gold prices in Vietnam remained steady or witnessed a slight rise, with physical gold prices trading approximately VND 13 million ($560) higher than converted international prices.
At the close of Wednesday’s trading session in the U.S. market, spot gold prices fell by $6.3 per ounce, representing a decline of nearly 0.3%, settling at $2,316.2 per ounce, according to data from the Kitco exchange. As of 9:00 AM Vietnamese time, spot gold prices in the Asian market gained $1.9 per ounce compared to the U.S. closing price, standing at $2,318.1 per ounce.
Gold prices have stabilized as geopolitical tensions in the Middle East have de-escalated, reducing the risk premium for the precious metal. Gold prices have since fallen by over $100 per ounce after reaching a record high of $2,430 per ounce on April 12.
Additionally, investors adopted a cautious approach ahead of the release of a series of U.S. economic data, which are expected to influence the Federal Reserve’s (Fed) interest rate trajectory.
On Thursday local time, the U.S. Commerce Department will disclose its report on the first-quarter gross domestic product (GDP). Subsequently, the department will release the personal consumption expenditures (PCE) index—the Fed’s preferred gauge of inflation—on Friday.
“Gold and silver prices are correcting as Mideast tensions ease. The big question now is whether this correction turns into a short-term down-trend, signaling that a top is in place,” said Jim Wyckoff, senior analyst at precious metals outlet Kitco Metals.
“The market’s focus is shifting back to economic reports and the Fed. If inflation numbers come in hotter than estimates, it will make it difficult for the Fed to cut interest rates, and gold could drop below $2,200 an ounce.”
The market currently anticipates the Fed’s first interest rate cut to occur in September.
Jonathan Rose, CEO of Genesis Gold Group, expressed optimism about gold’s long-term prospects. He believes that gold will continue to appreciate due to the record number of global elections this year, ongoing geopolitical tensions, and the substantial debt held by the U.S. government.
“Central banks have been huge buyers of gold, and that frenzy is unlikely to let up anytime soon,” he added.
As of 9:00 AM, the Phu Quy Group listed the price of SJC gold bars in Hanoi at VND 81.8 million ($3,500) per ounce (buy price) and VND 83.8 million ($3,580) per ounce (sell price), unchanged from early this morning.
Phu Quy quoted the 999.9 pure gold ring at VND 73.8 million ($3,140) per ounce and VND 75.5 million ($3,220) per ounce, respectively for buy and sell prices, representing an increase of VND 100,000 ($4.30) per ounce for both prices compared to yesterday morning.
The 999.9 pure gold ring from the Rong Thang Long brand, offered by Bao Tin Minh Chau Company, is priced at VND 73.78 million ($3,140) per ounce and VND 75.48 million ($3,230) per ounce.
In Ho Chi Minh City, SJC Company listed the prices of its gold bars at VND 81.5 million ($3,490) per ounce and VND 83.8 million ($3,580) per ounce.
The 999.9 pure SJC gold ring has a buy price of VND 73 million ($3,100) per ounce and a sell price of VND 74.8-74.9 million ($3,190-$3,200) per ounce, depending on the product’s weight.
Global gold prices currently equate to approximately VND 71.2 million ($3,040) per ounce, VND 12.6 million ($540) lower than the retail price of SJC gold bars and VND 4.3 million ($180) lower than the price of gold rings.
In a statement released on April 24, the State Bank of Vietnam announced that at 9:00 AM, it would continue its auction to sell gold bars. The total volume offered in this session is 16,800 ounces of SJC gold bars, with a reference price of VND 82.3 million ($3,520) per ounce.
The USD exchange rate recovered on the international market during Wednesday’s session, with the Dollar Index rising to nearly 105.9 points from 105.7 points in the previous session. The index is currently close to its recent 5-month high of 106 points.
Vietcombank quoted the USD exchange rate at VND 25,137 ($1.07) for buying and VND 25,477 ($1.08) for selling at the start of the morning, a decrease of VND 10 ($0.04) per rate compared to yesterday morning.
