Gold price "struggles" to reverse the trend, the $100 price drop is normal, is the market consolidating and accumulating to a new price zone?

Gold price today November 9, 2024: World gold price recovered after several sessions of sharp decline, losing up to 100 USD. Domestic gold price fluctuated continuously, many people chose to sell, causing abundant supply. Why do some experts maintain the view that the upward momentum of precious metals is still being supported?

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Update gold price today 11/9/2024

World gold price "trying" to go against the current.

In the international market, as soon as the US Federal Reserve (Fed) announced a 25 basis point (0.25%) interest rate cut, each ounce of spot gold recovered by about $50, after a $100 drop yesterday. In the weekend trading session, after the gold price recovered to the $2,700 range, the market seemed calmer, fluctuating slightly below the $2,700 range.

According to The Gioi & Viet Nam Newspaper , at 5:00 p.m. on November 8 (US time), the world gold price traded on the Kitco electronic floor was at 2,683.70 - 2,684.70 USD/ounce , down 22.4 USD/ounce compared to the previous trading session.

The main reason for the increase in gold is the falling price of the USD as investors in the greenback take profits. The Fed's interest rate cut at the meeting last day on November 7 makes the precious metal even more attractive.

Fed Chairman Jerome Powell said the agency is "comfortable" with the current state of the economy. The Fed is likely to make only minor changes to interest rates going forward. Markets are now expecting the Fed to cut rates by another 25 basis points at its December meeting.

Fed Chairman Powell began his post-FOMC policy meeting press conference with a resolutely non-political stance, explaining the logic behind the 25 basis point cut, sticking to familiar themes of strong inflation and employment progress and refusing to answer questions about President-elect Donald Trump's policy proposals.

But when asked about comments from some of Mr Trump’s advisers that he should resign, Mr Powell’s response was short and direct, pushing gold prices to session highs and setting the stage for a potential confrontation between the FOMC and the new administration.

Mr. Powell was asked at the outset how the Fed was prepared to “be proactive or reactive” to economic policy changes with the new administration.

“In the near future, the election will not affect our policy decisions,” he replied.

“As you know, a lot of things affect the economy and anyone who writes forecasts in their job will tell you that the economy is quite difficult to predict when looking beyond the immediate future. We don’t know the timing and nature of any policy changes. So we don’t know what the impact on the economy will be.”

Meanwhile, experts say that the drop of $100/ounce in one day in the world gold price is not unusual. This is a technical adjustment that the market has been waiting for. After a long period of increase and continuously recording new, unprecedented highs, the precious metal needs to make an adjustment to consolidate and accumulate to a new price range.

According to Kitco senior analyst Jim Wyckoff, one reason for the gold price recovery last night was a wave of buying as the metal fell sharply ahead of the US presidential election results.

Domestic gold prices fluctuate erratically.

At the opening of the weekend session, the prices of gold bars and plain round gold rings were adjusted up by brands, after a sharp decrease of 5-6 million VND the previous day. The fluctuating gold prices during the session caused gold holders to choose the safe solution of selling, making the scarce supply abundant. Buying gold is no longer as difficult as the previous days, customers can buy directly and without quantity limits at business units.

The closing price of SJC gold bars on November 8 was listed at 82 - 86 million/tael.

After the intervention of the State Bank, leading precious metal trading establishments have made cautious adjustments to SJC gold bars. Currently, Saigon Jewelry Company and 4 banks in the Big4 group have simultaneously listed the price of SJC gold bars at 81.0 - 85.5 million VND/tael (buy - sell).

The price of 9999 round plain gold rings has increased again by 1-2 million VND, depending on the brand. At this price, the price of gold rings is currently about 5 million VND/tael lower than the peak set at the end of October.

At the end of the day, Saigon Jewelry Group SJC listed at 82 - 84.8 million VND/tael; DOJI Group listed at 83.35 - 85.15 million VND; Bao Tin Minh Chau was 83.32 - 85.12 million VND/tael.

Gold price today November 9, 2024: Gold price is going against the trend again, the 'disappearance phase' of 100 USD is normal, the market is consolidating, accumulating to a new price zone. (Source: Kitco News)

Summary of SJC gold bar prices and gold ring prices at major domestic trading brands at the closing time of trading session on November 8:

Saigon Jewelry Company: SJC 82 - 86 gold bars million VND/tael; SJC gold ring 82 - 84.8 million VND/tael.

Doji Group: SJC gold bars 82 - 86 million VND/tael; 9999 round rings (Hung Thinh Vuong) 83.35 - 85.15 million VND/tael.

PNJ system: SJC gold bars 82 - 86 million VND/tael; PNJ 999.9 plain gold rings at 83.4 - 85.20 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at 82 - 86 million VND/tael; plain gold rings are traded at 83.32 - 85.12 million VND/tael.

The trend of gold prices is still up.

In the long term, many experts maintain that the upward momentum of precious metals is still being supported by many factors, such as buying power from central banks and geopolitical tensions that are unlikely to end soon.

"Gold's trend is still up. Nothing this week, from the US presidential election to the Fed's policy decision, can change that trend, unless the Fed signals no more rate cuts," said independent precious metals investor Tai Wong .

"The market shouldn't expect big cuts unless the economy takes a nosedive, which seems unlikely right now," said Jamie Cox, an analyst at Harris Financial Group.

Wall Street investors are hoping that Mr Trump’s return to the White House will boost risk assets like stocks, thanks in part to his proposed corporate tax cuts. But the prospect of continued government budget deficits and higher import tariffs has stoked inflation fears.

Until Trump's plans are made clear, markets could remain volatile and stocks could trend higher, said Tony Roth, chief investment officer at Wilmington Trust .

According to analysis by experts at Germany's Commerzbank, in the short term, gold may be under selling pressure to reduce risks after Donald Trump won the US presidential election. After that, the market is expected to gradually stabilize, possibly within 1 week to 10 days. At that time, money flow may gradually return to gold, especially in the context of countries around the world reducing interest rates.

Analysts believe that in the long term, more money will be pumped into the economy during Donald Trump's term through businesses. As this money is pumped in (combined with lower interest rates), the price of gold may continue to rise. Many forecasts suggest that the price of gold could reach $3,000/ounce by 2025.

Source: https://baoquocte.vn/gia-vang-hom-nay-9112024-gia-vang-no-luc-nguoc-dong-pha-bay-mau-100-usd-la-binh-thuong-thi-truong-dang-cung-co-tich-luy-len-vung-gia-moi-293016.html