Gold prices edged higher on Tuesday (September 10) as investors awaited the release of US consumer price index (CPI) data on Wednesday. While the pivotal level of $2,500 per ounce held firm, analysts suggested that gold prices needed a new catalyst to spark a significant breakout.
At the close of the New York session, spot gold was up $9.1 per ounce from the previous day’s close, equivalent to a 0.36% increase, reaching $2,517 per ounce, according to data from Kitco Exchange.
As of 7 a.m. Vietnamese time, spot gold prices in the Asian market rose $1 per ounce compared to the New York close, trading at $2,518 per ounce. Converted at Vietcombank’s selling rate, this price was equivalent to about VND 75.3 million per tael, up VND 300,000 per tael from the previous day.
“Gold prices are fluctuating within a very narrow range, awaiting the next catalyst. That catalyst could be the debate between the two US presidential candidates tonight, followed by the inflation report tomorrow,” said Daniel Ghali, strategist at TD Securities.
Donald Trump, the Republican nominee for the US presidential election in November, and Kamala Harris, the Democratic nominee, will face off in their first televised debate on Tuesday evening US time, which is early Wednesday (September 11) in Vietnam. Analysts expect the debate to provide a clearer picture of each candidate’s strengths, weaknesses, and key policies.
Subsequently, the US Department of Labor will release the CPI for August on Wednesday and the producer price index (PPI) on Thursday. This data is expected to be a crucial factor in the Federal Reserve’s decision on interest rate cuts at next week’s meeting.
According to data from the CME Exchange’s FedWatch Tool, traders are betting on a 100% chance that the Fed will cut interest rates on Wednesday. Of this, there is a 71% probability of a 0.25 percentage point cut and a 29% chance of a 0.5 percentage point reduction.
A Reuters survey showed that economists expected CPI to rise 0.2% in August from the previous month, unchanged from July’s increase. Any deviation in the data from forecasts could potentially impact interest rate expectations, leading to fluctuations in asset prices, including gold.
“Spot gold prices continue to find support at the key psychological level of $2,500 per ounce. If gold dips below this level after the US CPI report, bullish speculators will likely view it as a buying opportunity. They have consistently done so since mid-August,” Han Tan, chief analyst at Exinity Group, told CNBC.
So far this year, gold prices have climbed 21%. The recent record high for spot gold was set on August 20 at $2,531.6 per ounce.
Despite gold prices hovering near record highs, fund manager Eric Strand of AuAg Funds believes that gold still has room to grow.
“Gold prices may fluctuate, but I believe gold is still a bargain at less than $4,000 per ounce. Looking long-term, gold is far from being overvalued,” said Strand.
Explaining this view, Strand argued that the massive and growing US public debt would encourage global investors to seek safe-haven assets like gold, which tend to hold their value over time. He suggested that the only time gold was overvalued relative to its intrinsic worth was back in 2011 when US public debt was still relatively manageable.
In 2011, the US public debt-to-GDP ratio was approximately 95.5%. Last year, this ratio climbed to 122.3%. Currently, US federal government debt has surpassed $35 trillion.
After peaking at over $1,900 per ounce, gold prices endured a six-year bear market. However, Strand does not anticipate a similar prolonged downturn. He emphasized that there is a lack of political will in the US to address the government’s spending habits, regardless of which party is in power.
“In the coming years, politicians will realize that to get elected, they need to please the voters. Voters won’t be happy if taxes are raised and spending is cut. There’s no political incentive for them to stop printing money,” the fund manager concluded.
Gold Bar Buying Service: SJC Gold Bars at an Unbeatable Price of 79.5 Million VND per Tael
As of today, larger enterprises are purchasing gold bullion at a fixed rate of 78.05 million VND per tael, whereas mid-range gold retailers are offering to buy gold at a rate that is 1 million VND higher per tael.
The Golden Opportunity: Unveiling the Latest SJC Gold Prices and Beyond
The morning of September 10 saw a stagnant domestic gold price, with no significant changes from the previous day’s rates. While the SJC gold price remained unchanged, gold ring prices only witnessed a slight increase of VND 50,000-100,000 per tael.
The Golden Outlook: A Critical Perspective on Short-Term Price Predictions
The September meeting of the US Federal Reserve is fast approaching, and the gold market is in a flutter. Speculations are rife about the extent of interest rate cuts, causing a stir in the market.
The Golden Opportunity: Unveiling the Latest SJC Gold Prices and Beyond
The morning of September 6th saw SJC gold prices remain static from the previous day, with buy and sell rates fixed at 78.5 and 80.5 million VND per tael, respectively.
