Gold Market Volatility
In today’s trading session (September 4th), spot gold dropped by 0.3% to $3,546.73 per ounce, retreating from its all-time high of $3,578.50 reached on Wednesday. Gold futures for December delivery on the COMEX exchange also fell by 0.8% to $3,605.60.
Brian Lan, CEO of GoldSilver Central, offered his insights: “We’re seeing some profit-taking in the market, but the overall trend for gold remains upward. Expectations of interest rate cuts and concerns about the Federal Reserve’s independence are driving safe-haven demand.”
Mr. Lan further predicted that gold prices could surpass the $3,800 mark in the near term.
Gold prices slip from record highs.
The focus now shifts to US economic data. The US Labor Department reported a sharper-than-expected decline in July jobs, with nonfarm payrolls falling by 7,181 million. The August jobs report, due on Friday, is expected to show a gain of 78,000 jobs, up from 73,000 in July.
Some Fed officials, including Governor Christopher Waller, have expressed their preference for an immediate rate cut at the upcoming September meeting. FedWatch tool by CME Group shows that markets are pricing in a 97% probability of a 25-basis-point rate cut, up from 92% previously.
Gold, being a non-interest-bearing asset, typically benefits from a low-interest-rate environment.
Meanwhile, silver prices fell by 0.8% to $40.87 per ounce, retreating from its highest level since September 2011 in the previous session. Platinum declined by 0.5% to $1,415.03, while palladium dropped by 1% to $1,136.26.
Mixed Performance in Stock Markets
Stock markets in the Asia-Pacific region displayed mixed results on Thursday, as a strong rebound in tech stocks on Wall Street lifted the S&P 500 and Nasdaq indices, while persistent concerns about the global economy continued to weigh on sentiment.
In Japan, the Nikkei 225 and Topix indices advanced 1.32% and 0.79%, respectively. However, shares of Nidec Corp plunged more than 22% following allegations of accounting irregularities. Australia’s S&P/ASX 200 rose 0.75% after household spending data for July showed a 0.5% increase from the previous month, the highest since late 2023. South Korea’s Kospi and Kosdaq indices gained 0.09% and 0.94%, respectively.
Mixed performance in Asian markets.
In contrast, mainland Chinese and Hong Kong markets weakened. The Hang Seng Index fell by 1.21% to 25,037.73, while the Shanghai Composite dropped by 1.97% to 3,738.32. India’s Nifty 50 and Sensex indices bucked the regional trend, climbing 0.79% and 0.64%, respectively.
In the bond market, the yield on the 30-year US Treasury bond rose above 5% for the first time since July, following a federal court ruling that most of former President Trump’s tariffs were illegal. Japan’s 30-year yield also hit a high due to inflationary pressures and political uncertainty.
On Wednesday, US stock markets closed with mixed results: the Nasdaq Composite rose by 1.03% to 11,497.73, and the S&P 500 gained 0.51% to 3,448.26. However, the Dow Jones Industrial Average slipped by 0.05% to 25,271.23.
The Soaring Price of Gold: An Unexpected Turn of Events
“The SJC gold bar prices soar to new heights as small gold shops push the price to a record high of VND 139 million. This surge has caught the attention of experts, who now warn of potential risks associated with the SJC gold market. With the prices skyrocketing, investors and buyers must stay vigilant and informed to navigate this volatile market.”
Gold Breaks Records – What Do Analysts Predict?
Gold prices have soared to new record highs, the first time since April. Analysts predict that prices will continue to rise in the medium term as faith in the US dollar wanes.
The Unaffordable Gold Conundrum: A Tale of Wealth and Woes
This morning, gold prices surged to unprecedented levels, with SJC gold bullion reaching a staggering 130 million VND per tael, and gold rings nearly touching the same milestone. An unprecedented surge in demand from buyers has left gold businesses depleted, with some retailers running out of stock entirely, resulting in waiting periods of up to 15 days for eager customers eager to get their hands on the precious metal.
China’s Stock Market in Focus Post Xi Jinping’s Speech at Military Parade
The market stood at attention following Xi Jinping’s speech during the 70th anniversary of the end of World War II commemorations. The event, graced by 26 world leaders, including Russian President Vladimir Putin and North Korean leader Kim Jong-un, marked a pivotal moment in global politics.
The Golden Monopoly is Over: Will Prices Ever Drop?
According to experts, the elimination of the gold bullion monopoly will not lead to an immediate decrease in gold prices in the short term. There will be a certain lag time before any significant changes are observed.
