Gold prices continue to rise, about to set a new record

Domestic gold price

At the end of the trading session on November 28, the domestic price of 9999 gold today was listed by SJC and DOJI Gold and Gemstone Group in the following order of buying and selling:

SJC Hanoi: 72,500,000 VND/tael - 73,520,000 VND/tael
DOJI Hanoi: 72,300,000 VND/tael - 73,500,000 VND/tael
SJC Ho Chi Minh City: 72,500,000 VND/tael - 73,520,000 VND/tael
DOJI Ho Chi Minh City: 72,400,000 VND/tael - 73,400,000 VND/tael

International gold price

On the night of November 28 (Vietnam time), the spot gold price today on the world market stood at around 2,015 USD/ounce. Gold for February 2024 delivery on the Comex New York floor was at 2,036 USD/ounce.

The world gold price on the night of November 28 was about 10.5% higher (191 USD/ounce) than at the beginning of 2023. World gold converted to the bank USD price was 60 million VND/tael, including taxes and fees, about 12.3 million VND/tael lower than the domestic gold price as of the end of the afternoon session on November 28.

Gold prices on the world market are about to break out after reaching a 6-month peak and the USD continues to weaken. Domestic gold prices are increasing continuously, adding nearly 2 million VND/week and are about to set a new record high.

World gold increased as the USD declined quite rapidly.

The DXY index - measuring the greenback's performance against a basket of six major currencies - fell from 103.7 points in the previous session to 103.1 points at the beginning of trading on November 28 in the US market.

Investors expect the US Federal Reserve (Fed) to have completed its interest rate hike cycle.

According to market signals, there is a more than 90% chance that the Fed will keep interest rates unchanged in the next two meetings. After that, the Fed may reverse course and cut interest rates.

Gold had earlier hit a six-month high and was hovering around it.

RJO Futures experts shared on Kitco that gold is holding steady above the $2,000/ounce threshold and will break out if there is a clearer signal that the Fed has completed its interest rate hike cycle.

Gold Price Forecast

Recently, there have been predictions that the Fed may cut interest rates as early as March 2024. The market recorded a 50% chance that the Fed would cut interest rates in May. Meanwhile, the chance that the Fed would cut interest rates in June 2024 is very high.

With the US dollar trending down, gold reaching an all-time high is “just a matter of time”. The time for gold to reach a new peak could be as early as the end of this year or early next year.

However, the world has been unpredictable in recent years and anything can happen. This is also the factor that makes the Fed always cautious and wait for clear data before releasing more understandable signals to the market.

Investors are still waiting for signals from the US and Chinese economies in the first half of next year to determine clearer trends for the markets. This factor may prevent gold from breaking out strongly in the next few months, even though this is the peak season for gold consumption.