Near US election day, world gold slides deeply from peak of 2,790 USD/ounce

During the trading week before the US election, the world gold price fluctuated strongly, at one point jumping to a record high of 2,790 USD/ounce, but fell more than 1.9% from the peak on the last day of October.

Near US election day, world gold slides deeply from peak of 2,790 USD/ounce

During the trading week before the US election, the world gold price fluctuated strongly, at one point jumping to a record high of 2,790 USD/ounce, but fell more than 1.9% from the peak on the last day of October.

Gold's New Peak and the Steep Fall at the End of October

World gold experienced a volatile week. For most of the week, the upward trend dominated, bringing the gold price to a new record of 2,790 USD/ounce. However, the fall on Halloween (October 31) "blew away" almost all previous price increase efforts. In less than 24 hours, the gold price dropped more than 65 USD/ounce. At the end of the week, the world gold price closed at 2,736.2 USD/ounce, slightly up from the beginning of the week.

Although the increase was not much, this precious metal still extended its increasing streak to the fourth consecutive week. In October 2024, the world gold price increased by 100 USD/ounce, equivalent to an increase of 3.8%. Compared to the beginning of the year, gold increased by nearly 34%.

Weekly world gold prices. Source: Trading Economics

Investors continue to seek safety ahead of the upcoming US presidential election. The race remains tight, with both candidates within 1 percentage point of each other in the polls. Tensions in the Middle East have also increased the appeal of gold as a safe haven. Also next week, the market will receive updated data on the US consumer sentiment index from the University of Michigan. In Europe, industrial production, factory orders, Eurozone retail sales, etc. will provide an overview of the health of the European economy .

Meanwhile, the US Federal Reserve's policy outlook ahead of its November 7 meeting to announce its interest rate decision is also being closely watched. According to CME Group's FedWatch tool, investors are still betting on a 25 basis point rate cut at the next meeting. Only a small percentage are betting on the Fed keeping rates unchanged.

In addition to the Fed, the Bank of England and the Swedish Riksbank are also due to make interest rate decisions next week. The BOE is expected to cut rates by 25 basis points after holding them steady in September. Diverging paths from major central banks could impact the greenback.

The DXY index measures the strength of the USD against the currencies of six major trading partners of the US and is calculated from the exchange rates of six currencies with the respective weights being the euro (EUR) 57.6%, the Japanese yen (JPY) 13.6%, the British pound (GBP) 11.9%, the Canadian dollar (CAD) 9.1%, the Swedish krona (SEK) 4.2%, and the Swiss franc (CHF) 3.6%. After a sharp decline in the third quarter of 2024, the US Dollar Index (DXY) increased by 4.3% in October. Closing the trading session on November 1, the DXY index was still anchored around 104.3 points.

The purchase price of gold rings continues to exceed that of SJC gold bars.

In line with the international market trend, gold prices also decreased significantly in the Vietnamese market. SJC gold bars decreased by VND500,000/tael on Friday, the first decrease since October 9. At Saigon Jewelry Company (SJC), the buying and selling price of gold bars is currently at VND87.5 - 89.5 million/tael. On the buying side, SJC and most gold companies announced the buying price of VND87.5 million/tael, also increasing correspondingly with the increase in the selling price. Only Vang Mi Hong (HCMC) bought at VND88.3 million/tael.

Similarly, the selling price of gold rings at gold companies has also been adjusted. Many gold companies such as Phu Quy, PNJ, DOJI ... listed the buying price of gold at 88 million VND/tael, continuing to be several hundred thousand VND higher than the buying price of gold bars per tael.

Meanwhile, at Saigon Jewelry Company (SJC), the selling price of gold rings is VND88.9 million/tael while the buying price is relatively low at VND87.4 million/tael. Bao Tin Minh Chau gold ring price is listed at VND87.98 million/tael for buying and VND89.98 million/tael. The difference between buying and selling prices is only about VND1 million/tael.

Gold price at Bao Tin Minh Chau decreased sharply when entering November 2024.

The USD/VND exchange rate also increased rapidly under external pressure in October but also adjusted significantly last week. The State Bank reduced the exchange rate by 13 VND/USD during the week, down to 24,242 VND/USD. Exchange rates at commercial banks also decreased accordingly. Vietcombank is listing the exchange rate at 25,114 VND/USD (buying) and 25,454 VND/USD (selling), down 13 VND/USD compared to last week. The USD price on the free market is currently being bought at around 25,750 VND.

Source: https://baodautu.vn/can-ke-ngay-bau-cu-my-vang-the-gioi-truot-sau-tu-dinh-2790-usdounce-d229033.html