Gold has worst week in nearly 2 months
Gold prices were on track for their worst week in seven on Friday, weighed down by a stronger dollar and rising bond yields as investors digested the latest U.S. inflation numbers and awaited more economic data later in the day.
Spot gold rose just 0.05% to $1,912.9246 an ounce after hitting its lowest since July 7. US gold futures edged down 0.18% to $1,945.4.
Bullion has fallen about 1.2% so far this week as the U.S. dollar index and benchmark 10-year Treasury yields are on track for a fourth straight week of gains.
With a sharp decline to nearly $1,900/ounce, gold prices have recorded their worst week in nearly 2 months. Illustrative photo
“Investors came in at this 1900s low and they were buyers, but as gold strengthened they were also sellers,” said Philip Newman, CEO of Metals Focus.
Data on Thursday showed U.S. consumer prices rose moderately in July, with the smallest annual increase in core inflation in nearly two years, raising hopes that the Federal Reserve is nearing the end of its interest rate-hike cycle.
Still, San Francisco Fed President and CEO Mary Daly said more progress is needed before she feels comfortable that the Fed is doing enough to curb inflation.
Focus now turns to US producer price and consumer sentiment data due later in the day.
“Investors are very focused on the expectation of interest rates, as opposed to their actual levels, because the Fed’s consistent message is that they will not cut rates and any rate cuts have been pushed back to 2024,” Newman added.
Rising interest rates tend to increase bond yields and also increase the opportunity cost of holding non-yielding bullion.
Spot silver rose 0.03% to $22.6878 an ounce and platinum rose 0.52% to $911.3083.
Palladium rose 0.35% to $1,291.0424, marking its best week since mid-June.
SJC Gold “indifferent” to the decline of world gold
While the world gold price continuously decreased and recorded the worst week in nearly 2 months, the SJC gold price was quite "indifferent", continuing to increase, causing the gap between the two prices to widen further.
On the morning of August 12, SJC gold price at Bao Tin Minh Chau Jewelry Company was traded at: 66.85 million VND/tael - 67.48 million VND/tael, an increase of 100,000 VND/tael for buying and an increase of 200,000 VND/tael for selling compared to the end of yesterday.
Compared to the end of last week, SJC gold price increased by 180,000 VND/tael (equivalent to 0.27%) for buying and increased by 250,000 VND/tael for selling (equivalent to 0.37%).
Although the price of SJC gold increased, if investors bought at the end of last week and sold this weekend, they would still lose about 350,000 VND/tael. The reason is that the difference between the buying and selling price of SJC gold is still quite high, reaching 630,000 VND/tael.
Other gold and silver companies also have similar developments in SJC gold prices.
At the end of the week, SJC gold price at Saigon Jewelry Company - SJC and Doji Group were listed at: 66.80 million VND/tael - 67.50 million VND/tael, a significant increase compared to the end of last week.
Phu Nhuan Jewelry Company – PNJ has the lowest selling price of SJC gold in the market, only 67.30 million VND/tael. Meanwhile, the buying price of SJC gold at PNJ is 66.75 million VND/tael.
Meanwhile, non-SJC gold prices have cooled down after a long series of days of being “hotter” than SJC gold prices. This week, non-SJC gold prices followed the world gold price in a slight decrease.
At Bao Tin Minh Chau, the price of Thang Long Dragon gold is traded at: 56.11 million VND/tael - 56.96 million VND/tael, down 20,000 VND/tael in both buying and selling directions.
At PNJ Company, PNJ gold price closed the week at: 56 million VND/tael - 57 million VND/tael.
It can be seen that in the domestic market, currently, regardless of whether the gold price increases or decreases, investors who buy will lose money.
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