Gold price today September 20, 2024: World gold price once reached a record of 2,600 USD/ounce after the Fed cut interest rates. The world's leading banks believe that the 2,600-2,700 USD/ounce mark is feasible for precious metals in the near future.
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Update gold price today 9/20/2024
World gold prices fluctuate very strongly.
According to the World and Vietnam Newspaper at 9:00 p.m. on September 19 (Hanoi time), world gold trading was at 2,572.50 - 2,573.80 USD/ounce.
After its policy meeting, the US Federal Reserve (Fed) decided to cut its benchmark interest rate by 0.5 percentage points, to 4.75% - 5%, for the first time since 2020. At the same time, the Fed said that the US economy has made progress in cooling inflation but it is still high. This information led analysts to predict that the Fed will cut another 0.5 percentage points by the end of 2024 and another 1 percentage point in 2025.
Immediately, financial investors dumped the USD, causing the currency to drop sharply. Gold became attractive to holders of other currencies. Gold speculators increased their purchasing power, causing the world gold price to surge to 2,600 USD/ounce. However, it then suddenly dropped below 2,550 USD, before recovering to 2,577 USD/ounce.
The Fed's interest rate cut was a boost for precious metals. Initially, some observers thought that "gold prices reacted in the opposite direction" by falling sharply instead of rising as expected after the Fed's decision. However, the sudden sharp decline in precious metal prices was due to investors aggressively taking profits at a time when gold prices reached record highs.
The precious metals market has been heating up since a week ago when news broke that the Fed was about to cut interest rates. However, in the longer term, during this policy meeting, the Fed Chairman said that the agency will not rush to continue adjusting interest rates.
“The Fed rate cut signals a move by investors to re-enter gold ETFs, a component largely absent from the strong gold rally seen over the past two years,” analysts Lina Thomas and Daan Struyven wrote in a research note. “However, ETF holdings will only increase gradually as the Fed cuts rates, so the gold price will see gradual changes after the Fed easing cycle. The magnitude of this increase is currently not fully predictable.”
Domestic gold prices have simultaneously decreased in the context of fluctuating world gold prices.
The price of SJC gold bars simultaneously decreased by 200,000 VND/tael, losing the 82 million VND/tael mark, after reaching the highest price since the period when the State Bank intervened in the market in June.
On September 19, major gold bar trading units such as SJC, DOJI, PNJ currently listed the price at 79.8 - 81.8 million VND/tael. Also on the same day, 4 state-owned banks (Vietcombank, BIDV, Vietinbank, Agribank) announced the selling price for SJC gold bars to the public at 81.8 million VND/tael.
The price of plain round gold rings decreased by about VND100,000-200,000/tael in the morning trading session on September 19, then gradually recovered. The price range of VND77.9-79.2 million/tael is being applied by most businesses for 9999 gold rings.
Converted to the USD exchange rate at Vietcombank, the world gold price is currently equivalent to about 77 million VND/tael. Accordingly, compared to the world gold price, the price of SJC gold bars is 4.5-5 million VND higher, while gold rings are 2-2.5 million VND higher.
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| Gold price today September 20, 2024: World gold price does not 'react negatively', SJC gold bars set a new price, a bright future awaits. (Source: Kitco) |
Summary of SJC gold bar prices at major domestic trading brands at closing times of trading session on the afternoon of September 19 :
Saigon Jewelry Company: SJC gold bars 79.8 - 81.8 million VND/tael; SJC gold rings 77.9 - 79.3 million VND/tael.
Doji Group: SJC gold bars 79.8 - 81.8 million VND/tael; 9999 round rings (Hung Thinh Vuong): 78.0 - 79.2 million VND/tael.
PNJ system: SJC gold bars 79.8 - 81.8 million VND/tael; PNJ 999.9 plain gold rings: 78.1 - 79.2 million VND/tael.
Phu Quy Gold and Silver Group: SJC gold bars: 79.8 - 81.8 million VND/tael; Phu Quy 999.9 round gold rings: 78.0 - 79.2 million VND/tael.
SJC gold price at Bao Tin Minh Chau is listed at: 79.8 - 81.8 million VND/tael. The price of round gold rings at Vang Rong Thang Long is listed at 78.80 - 79.18 million VND/tael.
$2,600-2,700 is possible for gold price
Gold may see a short-term pullback after the Fed’s first rate cut, but the outlook for the precious metal remains bright through 2025, according to new research and analysis from Goldman Sachs, UBS, TD Securities and Bank of America. Many analysts share the same optimistic view on the precious metal’s future direction.
Heng Koon How, head of market strategy at UOB Global Economics and Markets Research, said that gold is showing bright potential. "We forecast that gold could reach $2,700/ounce by mid-2025 and potentially $3,000 in the longer term," Heng Koon How, a specialist, predicted.
Forecasts from the world's leading banks also suggest that the $2,600-$2,700 mark is feasible for the precious metal next year. Goldman Sachs said that gold is in an "inexorable bull market" and updated its year-end forecast to $2,700/ounce.
The positive momentum for gold prices is seen by experts as the interest rate cut by the US Federal Reserve (Fed). In addition, according to experts, geopolitical tensions and buying power from central banks - two factors that have driven gold prices in recent times - will continue to be maintained. In addition, gold has increased by 23-25% in 2024 due to expectations of lower US bond yields and diversification away from the US dollar by central banks.
Analysts reiterated Goldman's forecast that the yellow metal will hit $2,700 an ounce on the spot market by early 2025.
Meanwhile, UBS analysts maintained their bullish outlook on gold from before the Fed began its easing cycle and, like Goldman Sachs, they see the yellow metal trading at $2,700 an ounce, although they expect it to take until mid-2025 to reach that level.
Source: https://baoquocte.vn/gia-vang-hom-nay-2092024-gia-vang-the-gioi-khong-phan-ung-nguoc-vang-mieng-sjc-cai-dat-muc-gia-moi-tuong-lai-tuoi-sang-hon-van-dang-cho-286863.html
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