Domestic gold price
Last week, domestic gold prices plummeted, combined with the very high difference between buying and selling gold last week, causing investors to suffer heavy losses.
If you buy gold at DOJI Group on February 11 at VND78.85 million/tael and sell it today (February 18), investors will lose VND2.8 million/tael. Meanwhile, those who buy gold at Saigon Jewelry Company SJC will also lose VND2.9 million/tael.
The current difference between buying and selling gold prices is listed at around 2.5-2.6 million VND/tael. This difference is considered very high. Investors face the risk of loss when investing in the short term.
World gold price
Gold Price Forecast
Fourteen analysts participated in the Kitco News Gold Survey and Wall Street sees little upside potential for gold in the near term.
Only three, or 21%, expect gold prices to be higher next week. Meanwhile, eight analysts, or 57%, predict prices will fall, and another three, or 21%, predict gold prices will trade sideways during that time.
221 votes were cast in Kitco’s online poll, with the majority of investors remaining bullish. 94 retail investors, or 42%, expect gold to rise next week. Another 72, or 33%, predict lower prices. Meanwhile, 55 respondents, or 25%, are neutral on the precious metal’s near-term outlook.
Ole Hansen, head of commodity strategy at Saxo Bank, said he would be watching Chinese investors after they return from the Lunar New Year holiday week. “Gold may struggle in the short term as expectations for a rate cut are fading, but overall I look forward to seeing how Chinese investors react to slightly lower prices next week,” he said.
Notably, James Stanley, senior market strategist at Forex.com, remains bullish on gold's short-term outlook: "I think we'll see the Fed continue to be dovish, and that's positive for gold. The fact that spot gold has tested below $2,000 this week shows that."
“Part of it may be that the market has realized that it overreacted to the decline,” said Everett Millman, chief market analyst at Gainesville Coins. “Both the PPI and CPI numbers we got recently were hotter than expected, all of which add up to a stronger-than-expected U.S. economy. That’s really negative for gold.”
Aside from weekly jobless claims and a handful of Fed spokespeople, next week promises to be a quiet one on the data front, with the release of the FOMC meeting minutes on Wednesday the only major event on the schedule.
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