Gold price "sets another record", demand for shelter increases, how profitable is gold investment?

Gold price today October 19, 2024: World gold prices hit a new record as the "safe haven" became an urgent need of the market. Domestically, the price of gold rings continued to increase, continuing to peak, reaching a profit yield of 34%. WGC has a new way to calculate profits when investing in gold.

Update gold price today October 19, 2024

World gold prices continue to rise and reach new record highs.

According to the World & Vietnam Newspaper , the international gold price traded on the Kitco electronic floor, at 6:40 p.m. on October 18 (Hanoi time), was at 2,710.40 - 2,711.40 USD/ounce , up 17.9 USD/ounce compared to the previous trading session. The Comex gold futures contract for December delivery reached a new high of 2,712.70 USD/ounce.

Gold prices have surged more than 30% this year, surpassing records, as safe-haven demand amid rising geopolitical uncertainty and expected volatility in the wake of the US presidential election continue to push prices higher. Buying amid rising prices is also helping push the precious metal higher.

Meanwhile, the loose monetary policy environment, fueled by expectations of further interest rate cuts by the US Federal Reserve (Fed), following a 0.5% cut last month, continued to keep gold prices high. Meanwhile, a series of US economic data released midweek, including reports on retail sales and weekly jobless claims, are unlikely to change the Fed's monetary policy trajectory.

The European Central Bank (ECB) has just concluded its policy meeting by announcing a 25 basis point cut in its main interest rate, bringing the deposit rate to 3.25%. This move was widely expected.

Additionally, gold is becoming increasingly popular with developing economies looking to diversify their foreign exchange reserves, as seen in the large hoarding sprees by the economies of China, Russia, Türkiye, etc. over the past few years. The BRICS summit begins next week, with the goal of de-dollarization also a major part of the agenda.

The key overseas markets saw a firmer dollar index, with the benchmark 10-year US Treasury yield now at 4.091%. Crude oil prices were mostly steady, trading around $70.25 a barrel.

Domestic gold prices fluctuate at new highs, increasing sharply following world trends.

The price of SJC gold bars is still kept unchanged by large enterprises, Saigon Jewelry Company, DOJI Group, Phu Quy and Bao Tin Minh Chau... all listed at 84-86 million VND/tael (buy - sell), unchanged compared to the opening session.

The price of 9999 round smooth gold rings has been continuously increasing, surpassing all records. The selling price of gold rings exceeded 85.5 million VND/tael, an increase of 650,000 VND/tael compared to the morning of the same day. At the end of the session on October 18, the price of gold rings was listed by precious metal traders at 84.75 million VND/tael for selling, an increase of 450,000 VND compared to the closing price on October 17.

At Doji Group, the price of gold rings is traded at 84.60 - 85.60 million VND/tael; at Phu Quy, it is listed at 84.6 - 85.6 million VND/tael, an increase of nearly 1 million VND/tael; at Bao Tin Minh Chau, it is listed at 84.58 - 85.58 million VND/tael; Phu Nhuan Company trades gold rings at 84.40 - 85.39 million VND/tael...

Thus, compared to the first trading session of the week (October 14), gold rings have increased in price by more than VND1.5 million/tael for buying and VND1.3 million for selling. Compared to the beginning of the year, each tael of gold rings has increased by about VND21.4 million for both buying and selling, equivalent to a profit margin of 34%.

Converted to USD exchange rate (excluding taxes and fees), the world gold price is equivalent to 82.3 million VND/tael. Accordingly, domestic gold is about 3.7 million VND/tael higher than the world price, depending on the time.

Gold price today October 19, 2024: Gold price 'sets another record', demand for shelter increases, how profitable is gold investment? (Source: Kitco News)

Summary of SJC gold bar prices at major domestic trading brands at the closing time of trading session on October 18:

Saigon Jewelry Company: SJC gold bars 84 - 86 million VND/tael; SJC gold rings 82.9 - 84.1 million VND/tael.

Doji Group: SJC gold bars 84 - 86 million VND/tael; 9999 round rings (Hung Thinh Vuong) 84.60 - 85.60 million VND/tael.

PNJ system: SJC gold bars 84 - 86 million VND/tael; PNJ 999.9 plain gold rings at 84.40 - 85.39 million VND/tael.

Phu Quy Gold and Silver Group: SJC gold bars: 84 - 86 million VND/tael; Phu Quy 999.9 round gold rings: 84.6 - 85.6 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at 84 - 86 million VND/tael; plain gold rings are traded at 84.58 - 85.58 million VND/tael.

WGC Predicts Gold Gains?

Rising gold prices have led to a resurgence of interest in the yellow metal, especially as the global economy deteriorates and geopolitical tensions escalate. But while gold makes a great contribution to portfolio risk management, it does not generate cash flows, and traditional discounted cash flow models do not apply to gold, nor can it be used for conventional asset valuation.

For these reasons, the WGC has created a new framework to better define gold's contribution to portfolio returns, called the "Gold Long-Term Expected Return (GLTER)".

According to the WGC's new calculation, it shows: "The estimated average return on gold over the 2025-2040 period exceeds 5% per year. And the long-term return on gold has been and is likely to remain much higher than inflation.

Source: https://baoquocte.vn/gia-vang-hom-nay-19102024-gia-vang-ghi-them-ky-luc-nhu-cau-tim-noi-tru-an-gia-tang-dau-tu-vang-loi-nhuan-the-nao-290503.html