Domestic Gold Prices Fluctuate, Remaining at High Levels
Domestic gold prices remained stable this morning (May 3), with the selling price hovering around VND 85 million per tael, significantly higher than the converted global price by over VND 14 million per tael.
As of 10:00 AM today, spot gold prices in Asian markets stood at USD 2,299.9 per ounce, a USD 4.4 per ounce decrease from the closing price of the Thursday trading session in the US market, according to data from Kitco exchange.
During last night’s New York session, spot gold prices dropped by USD 18.3 per ounce compared to the previous closing price, marking a decline of nearly 0.8% to USD 2,334.3 per ounce.
Converted using the Vietcombank USD selling rate, global gold prices this morning were approximately VND 70.6 million per tael, a VND 600,000 decrease compared to yesterday morning.
Meanwhile, Phu Quy Group listed SJC gold bar prices for the Hanoi market at VND 83 million per tael (buying) and VND 85 million per tael (selling), unchanged from the previous afternoon but higher by VND 400,000 per tael at both ends of the price range compared to yesterday morning.
999.9 pure gold round rings from Phu Quy were priced at VND 73.85 million per tael and VND 75.45 million per tael, respectively, down by VND 550,000 per tael and VND 650,000 per tael compared to yesterday morning.
Bao Tin Minh Chau Company quoted 999.9 pure gold round rings from Rong Thang Long at VND 73.63 million per tael and VND 75.23 million per tael.
In the Ho Chi Minh City market, SJC Company quoted gold bar prices at VND 82.9 million per tael and VND 85.2 million per tael. SJC round rings were priced at VND 73.1 million per tael for buying and VND 74.8-74.9 million per tael for selling, depending on weight.
This morning, the State Bank organized a gold bar auction with a sale volume of 16,800 taels and a reference price of VND 82.9 million per tael. This was the fourth gold bar auction since the State Bank resumed this activity in April.
Compared to converted global gold prices, SJC gold bar retail prices are currently higher by around VND 14.4-14.6 million per tael, while gold ring prices are higher by nearly VND 5 million per tael.
Global gold prices have declined due to investor concerns that the US Federal Reserve (Fed) may keep interest rates higher for longer. Concluding the monetary policy meeting on Wednesday, the Fed stated that progress in reducing inflation had stalled, and the Fed would need to wait some time until it was confident enough to begin lowering interest rates.
“Given the persistent inflation environment and the upward trend in the US dollar, gold’s downward pressure over the past two weeks has intensified. We believe that this correction in gold prices is not yet over,” David Meger, investment director at High Ridge Futures, told Reuters.
However, the downward pressure on gold prices from the interest rate outlook has eased somewhat after Fed Chair Jerome Powell signaled no additional rate hikes, as many investors and economists had recently feared.
Following the Fed meeting, investor attention has shifted to the April employment report scheduled for release by the US Department of Labor on Friday. This data point should shed further light on the state of the US economy and the inflation outlook, which will in turn influence the Fed’s monetary policy direction.
According to a Dow Jones poll, economists expect the non-farm sector of the US economy to add 240,000 new jobs over the past month, down from the 303,000 new jobs created in March. Experts also anticipate signs of decelerating wage growth in this report.
Should the data in the employment report come in hotter than anticipated, expectations of the Fed’s first rate cut could be pushed back further, further weighing on gold prices, Meger said.
The world’s largest gold ETF, SPDR Gold Trust, sold off an additional 1.4 tons of gold on Thursday, reducing its holdings to over 829.6 tons. The fund has sold off 2.6 tons of gold this week. Despite the recent slowdown in net sales and some days of net purchases, SPDR Gold Trust has essentially maintained a net selling position.
The US dollar has declined significantly in international markets following the Fed meeting, with the Dollar Index this morning standing at around 105.3, down from 105.7 yesterday morning and over 106 before the Fed meeting.
Domestically, Vietcombank quoted USD at 25,113 VND (buying) and 25,453 VND (selling) at 10:00 AM, an increase of 29 VND and a decrease of 1 VND compared to the same time yesterday.
