Gold prices end 4 consecutive sessions of increase as USD strengthens

At 1:41 a.m. on December 3, Vietnam time, spot gold prices fell 0.6% to $2,636.54/ounce, after falling as much as 1% at one point.

World gold prices fell in the trading session on December 2, ending a series of four consecutive increases, as the USD increased strongly and investors prepared to receive important economic data and comments from the Federal Reserve (Fed) on the interest rate roadmap.

At 1:41 a.m. on December 3, Vietnam time, spot gold fell 0.6% to $2,636.54 an ounce, after falling as much as 1% at one point. Gold futures fell 0.8% to $2,658.50 an ounce.

Peter Grant, vice president and senior metals strategist at Zaner Metals, said the stronger US dollar, partly due to comments from US President-elect Donald Trump, is putting pressure on gold prices.

The dollar index, which measures the greenback's strength against a basket of major currencies, jumped 0.7%, making gold more expensive for buyers using other currencies.

Trump’s tariff threats have also raised concerns that US interest rates will stay high for longer, sending gold down 3% in November, its biggest monthly decline since September 2023.

This week, a series of important US economic data will be released that could influence market expectations for monetary policy. Among the most important reports are the number of jobs being hired, the ADP employment report and the non-farm payrolls report.

In addition, several Fed officials, including Fed Chairman Jerome Powell, will also speak.

BMI analysts see significant downside risks to gold in 2025 and expect significant volatility in gold prices as the Fed takes a more cautious approach to rate cuts, which could be negative for gold.

After cutting rates by 0.25 percentage point to 4.50-4.75% last month, markets are now pricing in a 64% chance of a further Fed cut in December.

In other precious metals markets, spot silver fell 0.6% to $30.41 an ounce, and platinum edged up 0.1% to $946.25 an ounce.

In Vietnam, at the end of December 2, Saigon Jewelry Company announced the price of SJC gold bars at 82.80-85.30 million VND/tael (buy-sell).

Source: VNA

Source: https://baophutho.vn/gia-vang-cham-dut-chuoi-4-phien-tang-lien-tiep-khi-dong-usd-manh-len-223814.htm