World gold prices continued to cool down today (October 25) after a sharp increase. A higher US dollar index and rising US Treasury yields are factors holding back the precious metal. In addition, Nymex crude oil prices remained relatively stable, trading around $85.50 per barrel. The yield on the benchmark 10-year US Treasury bond is currently at 4.857%.
Besides news surrounding the conflict in the Middle East, the US government will release several important economic reports this week. These include a projected GDP growth rate of 2.1% in the second quarter, which is expected to improve to 4.7% in the third quarter.
Additionally, the Personal Consumption Expenditures (PCE) price index for September will also be revealed. Inflation is forecast to rise from 0.1% to 0.3% compared to the previous month.
According to analysts at Heraeus, a leading global metals producer, gold prices continue to ignore investor expectations of a Fed interest rate hike and rising Treasury yields, remaining near $2,000 per ounce.
"Higher-than-expected US inflation and better-than-expected retail sales have increased the likelihood of the Fed tightening monetary policy in November. Safe-haven demand due to the conflict in the Middle East means some price rallies may be curbed by short-term profit-taking," the expert assessed.
In other news, amid the recent surge in global gold prices, statistics show that as much as 7.97 million ounces of gold have flowed out of ETFs since their peak in May. However, ETF investors may be about to return to gold-backed funds this week if they fear missing out on another upcoming price rally.
Other experts believe that gold prices are still trending sharply upward this week as instability in the Middle East continues and shakes the market.
As of 5:00 PM, the world gold price is trading around $1,970 per ounce. Domestically, businesses are simultaneously adjusting the price of the precious metal downwards. SJC gold is currently listed at 69.65 - 70.37 million VND/ounce (buying price - selling price), a decrease of 250,000 VND/ounce in both directions.
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