The domestic gold market fluctuated last week as SJC gold bars continued to increase, approaching nearly VND80 million/tael. On the buying side, the price narrowed compared to the selling side at VND1.5 million/tael.

Domestic gold prices increased amid a sharp increase in world gold prices. Notably, on August 1, the price of SJC gold bars increased by VND800,000 to VND79.8 million/tael. Similarly, SJC gold rings increased by VND350,000 to VND77.65 million/tael.

According to the World Gold Council (WGC) report, Vietnamese investors continue to seek gold bars. Jewelry gold in the second quarter decreased by 15% compared to the same period last year. In the first half of this year, Vietnam's jewelry gold demand decreased to only 7 tons, the lowest level compared to the same period since 2022.

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Will domestic gold prices increase if world gold prices accelerate? Photo: Kitco

The world gold market increased sharply in the middle of the week last week, when the Chairman of the US Federal Reserve (Fed) Jerome Powell signaled that the US Central Bank could start cutting interest rates in September. In addition, geopolitical instability in the Middle East and disappointing economic data pushed the price of gold to above 2,500 USD/ounce.

Gold prices cooled down at the end of the week after the US jobs report. The US unemployment rate in July 2024 increased for the fourth consecutive month to 4.3%, from 4.1% in June. World gold ended the week at $2,441/ounce.

Phillip Streible, chief market strategist at Blue Line Futures, said one reason for the drop in gold prices was that investors sold off heavily at peak prices, to rotate their finances into other investment areas, including stocks.

Fears of a recession have sparked a sharp sell-off in the stock market. Weaker stocks have created safe-haven demand for gold.

However, investors are bucking the trend as they are forced to sell profitable assets, including gold, to offset capital losses in the stock market.

According to Chris Vecchio, Chief Strategy Officer at Tastylive, the specter of a recession peaked last Friday (August 2). Economists explained that the rising unemployment rate triggered the Sahm recession indicator (the 3-month average unemployment rate).

By rule, the beginning of a recession can be determined when the average national unemployment rate over three months increases by 0.5% or more compared to the minimum average of the previous three months.

The disappointing jobs data also shows that the Fed made a monetary policy mistake by waiting too long to cut interest rates.

Robert Minter, Chief Investment Strategist at Abrdn, said that after the negative employment data, the US Central Bank will accelerate the rate cut. He said that the labor market is very important, even a small factor can directly affect people's spending. Therefore, a weak labor market can lead to the economy falling into recession.

In a comment to Kitco News, Naeem Aslam, chief investment officer at Zaye Capital Markets, said he is bullish on gold. According to him, the Fed’s monetary policy mistakes are now very clear as the world’s most powerful bank is slow to cut interest rates, putting the economy at risk of recession. This is good news for the gold market.

Meanwhile, Michele Schneider, Chief Strategy Officer of MarketGauge, predicts that gold could rise by 8% in the coming time. If gold maintains the level of 2,450 USD/ounce, it could reach 2,650-2,700 USD/ounce.

Chris Vecchio advises that if gold prices fall in the near future, investors should consider this an opportunity to buy in. Because gold will certainly increase in price when the US economy is falling into recession.

Gold price today August 4, 2024 ended the week with a strong increase, there was a sell-off . Gold price today August 4, 2024 on the world market ended the week with a strong increase. Gold investors are optimistic about the prospect of precious metals in the coming time. SJC gold bar price this week also increased by nearly 80 million VND/tael (sold).