Gold prices will increase rapidly again, demand for gold jewelry will decrease sharply, be cautious with the possibility of domination from the West

Gold price today July 31, 2024, both SJC gold bars and gold rings in the country decreased simultaneously. The market is waiting for a series of new important economic data, with the expectation that the Fed will start cutting interest rates in September and the expectation that obstacles for the USD will turn into advantages for gold prices.

LIVE UPDATE TABLE OF GOLD PRICE TODAY 7/31 AND EXCHANGE RATE TODAY 7/31

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Update gold price today 7/31/2024

World gold prices returned to an upward trend in the first trading sessions of the week.

Recent reports showing that US inflation is on a steady decline towards the 2% target have increased optimism in the gold market. Gold prices have also increased due to escalating geopolitical tensions, the prospect of the US Federal Reserve (Fed) cutting interest rates in September and the unexpected dominance of Western investors.

According to World & Vietnam Newspaper , at 6:25 p.m. on July 30, the world gold price was traded on the Kitco electronic exchange. at $2,392.20/ounce, up $7.5 from the previous trading session.

Gold has risen 3% in July after hitting a record high of $2,483.60 on July 17, on growing optimism that the Fed will lay the groundwork for monetary policy easing in September at its two-day policy meeting (July 30-31). In addition to the Russia-Ukraine conflict, the precious metal market has continued to receive support these days as geopolitical risks escalate sharply in the Middle East following a rocket attack on the Israeli-occupied Golan Heights.

The latest news in the market is that the demand for gold jewelry has decreased sharply. However, in the current environment, the world gold price can still maintain an upward trend, because of the emergence of new factors, which are predicted to dominate the future market.

In terms of physical demand, gold consumption in China - the world's largest consumer market - fell 5.6% in the first half of 2024 due to a 26.7% drop in jewelry demand amid high prices, but in return, demand for gold bars increased by 46%. In fact, it is not only the Chinese market, analysts at the World Gold Council (WGC) are focusing on the ability of Western investors to dominate the future gold market.

Gold price today July 31, 2024: Gold price increases rapidly again, demand for gold jewelry decreases sharply, be cautious with the possibility of Western influence. (Source: AP)

Domestic gold price decreased in all brands, while world gold continues to increase.

At the end of the trading session on July 30, the price of SJC gold bars decreased by half a million VND, trading at 79 million VND/tael; the price of gold rings decreased slightly to 77 million VND/tael.

After decreasing by VND500,000/tael from the morning session on July 30, Saigon Jewelry Company listed the buying and selling price of SJC gold bars at VND77 - 79 million/tael. The price of SJC gold bars traded at DOJI is VND77 - 79 million/tael, decreasing by VND500,000 in both buying and selling directions.

At Saigon Jewelry Company, the price of 9999 round gold rings was traded at 75.55 - 77.00 million VND/tael (buy - sell), down 50,000 VND compared to the previous session. PNJ Group traded at 75.6 - 77.02 million VND/tael, down 100,000 VND and 70,000 VND respectively compared to the previous day. Bao Tin Minh Chau traded at 75.83 - 77.03 million VND/tael, down 50,000 VND/tael in both directions.

Western investors set to increase allocation to gold

The yellow metal market continues to assert its position as a global financial asset, as traditional pillars of strength in the market weaken, according to the latest research from the WGC.

According to the WGC's announcement on global demand trends, record high gold prices in the second quarter of 2024 have significantly impacted global jewelry demand, down 19% compared to the second quarter of 2023. Accordingly, from April to June, jewelry gold consumption fell to 391 tons, the lowest level in 4 years.

However, the outlook for total global gold demand is mixed. Physical gold demand excluding the over-the-counter (OTC) market fell to 929 tonnes last quarter, down 6% year-on-year. But when OTC markets are included, demand rose 4% year-on-year to 1,258 tonnes, the highest level in the second quarter of 2024 in the WGC’s data series going back to 2000.

According to Joseph Cavatoni, North America Market Strategist at the WGC, there has been a clear shift in demand emerging in the gold market, with Western investment demand starting to pick up while jewelry demand has declined. Accordingly, “OTC investment of 329 tonnes has become a significant component of total gold demand in Q2/2024. Together with continued central bank buying, this has helped push prices to a series of record highs in the past quarter."

Demand for European gold ETFs has led the market in recent months as investors seek to hedge against geopolitical uncertainty and lower interest rates as the European Central Bank begins to cut rates ahead of the Fed's action, Cavatoni added.

Europe could be a strong test case for the North American market, as the Fed is expected to cut interest rates in September, according to strategist Cavatoni. He also mentioned that the US presidential election in November will create some volatility in the market. "All the market developments are showing that Western investors are preparing to increase their allocation to gold," he said. The position of speculators in the US futures market may indicate that - their net long position in the second quarter increased impressively, reaching a level not seen since April 2020 of 575 tonnes.

“Gold demand in global markets is expected to continue to drive OTC investment,” the WGC update said. “In addition, strong demand from Western investors is driven by concerns about the US debt burden, geopolitical risks and the appeal of strong gold prices.”

Source: https://baoquocte.vn/gia-vang-hom-nay-3172024-gia-vang-se-tang-nhanh-tro-lai-nhu-cau-vang-trang-suc-giam-manh-than-trong-voi-kha-nang-chi-phoi-tu-phuong-tay-280667.html