SJC gold jumps to 74.60 million VND/tael
After a week of strong fluctuations, the price of SJC gold continued to increase even more strongly. Right from the opening of the new week, jewelry stores simultaneously adjusted the price of SJC gold to increase by about 500,000 VND/tael, far exceeding the 74 million VND/tael mark.
Specifically, Doji Group adjusted the price of SJC gold to increase by 700,000 VND/tael for buying and 500,000 VND/tael for selling to 73 million VND/tael - 74.50 million VND/tael. The difference between selling and buying prices decreased to 1.5 million VND/tael from 1.7 million VND/tael at the end of last week.
At Phu Nhuan Jewelry Company - PNJ, precious metals have an even more impressive growth rate. SJC gold price at PNJ is being bought and sold at: 73.20 million VND/tael - 74.60 million VND/tael, an increase of 500,000 VND/tael for buying and an increase of 700,000 VND/tael for selling.
Immediately after the world gold price set an all-time high, the price of SJC gold increased by half a million VND/tael to 74.60 million VND/tael. Illustrative photo
The price of SJC gold at Saigon Jewelry Company - SJC increased by 400,000 VND/tael to 73 million VND/tael - 74.40 million VND/tael. Bao Tin Minh Chau Jewelry Company adjusted the price of SJC gold to increase by about 530,000 VND/tael to 73.05 million VND/tael - 74.28 million VND/tael.
It can be seen that the SJC gold trading prices of companies on the market are having quite large differences.
After half a month of strong growth compared to SJC gold, today, non-SJC gold prices have slowed down. At Bao Tin Minh Chau, Thang Long Dragon gold prices are listed at: 62.13 million VND/tael - 63.33 million VND/tael, an increase of 250,000 VND/tael compared to the end of last week. At PNJ, PNJ gold prices are traded at: 61.80 million VND/tael - 63 million VND/tael, an increase of 200,000 VND/tael compared to the end of last week.
World gold price sets new record
Domestic gold prices are increasing sharply after world gold prices broke through, setting a new record early in the morning of December 4.
In the Asian market, at the beginning of the new week, the world gold price increased by 58.9 USD/ounce, equivalent to 2.84% to 2,139.9 USD/ounce. However, at present, although this precious metal has cooled down, it still maintains a strong upward momentum when it increased by 13.2 USD/ounce to 2,084.2 USD/ounce.
Gold prices are on track to hit new highs next year and are expected to stay above $2,000, driven by geopolitical uncertainty, a potentially weaker US dollar and the possibility of interest rate cuts.
Prices of the yellow metal have risen for two straight months as the Israeli-Palestinian conflict boosted demand for safe-haven assets, while expectations of interest rate cuts provided further support.
“We believe the key drivers for gold in 2024 will be Fed rate cuts, a weaker US dollar and high levels of geopolitical tensions,” BMI, a research unit of Fitch Solutions, said in a recent note.
Gold tends to perform well during times of economic and geopolitical uncertainty due to its status as a trusted store of value.
Spot gold rose to $2,077.64 an ounce on Monday after hitting $2,075.09 on Friday to surpass its intraday record high of $2,072.50 set on August 7, 2020, according to LSEG data. Analysts say it is set to hit even higher.
Bart Melek, head of commodity strategy at TD Securities, expects gold prices to average $2,100 in the second quarter of 2024, with strong central bank buying acting as the main catalyst driving prices.
According to a recent survey by the World Gold Council, 24% of central banks intend to increase their gold reserves in the next 12 months, as they become increasingly pessimistic about the US dollar as a reserve asset.
“This means that demand could be higher from the formal sector in the coming years,” Melek said.
A possible Fed policy pivot in 2024 could also be factored in, he added. Lower interest rates tend to weaken the dollar, and a softer dollar makes gold cheaper for international buyers, boosting demand.
The Fed is set to begin a steady stream of rate hikes in March 2022 as inflation rises to a 40-year high, reducing gold's appeal.
Higher interest rates hurt demand for gold, which does not pay any interest, as assets like bonds become more profitable due to higher yields.
Recently, on November 29, Fed Governor Christopher Waller said he could envision easing policy if inflation data continued to decline in the next 3 to 5 months, causing analysts to predict that gold prices would skyrocket.
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