After hitting a new high on Friday, gold prices climbed to a new high in early morning trading on Monday this week. In the international market, spot gold prices hit a new high of $2,354/ounce early Monday morning (US time).
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| Gold and USD prices have both unexpectedly increased recently. Photo source: Shuttershock |
However, to the surprise of most commodity market observers, the US dollar also rose in early morning trading as the Dollar Index rose 0.05% and continued to approach the 104.50 level. Market observers shared on Mint that, except for a few trading sessions in the past two weeks, it is surprising that the US dollar and gold prices are moving in the same direction.
Explaining this growth, Mr. Amit Goel, co-founder & global strategy director at Pace 360 Financial Services (India) said: “Gold and the US dollar have traditionally had an inverse correlation, meaning when one increases, the other decreases. However, the current purchasing power of both commodities is increasing, creating a rare paradox in the market.” According to Mr. Amit Goel, the US dollar price is rising due to the US economy being said to have strong growth, combined with the tough move from the US Federal Reserve (FED) in cutting interest rates. In contrast, the price of gold is increasing due to the expected interest rate cuts from central banks around the world and because gold has been oversold and not widely owned.
However, Anuj Gupta, Head of Commodities & Currencies at HDFC Securities, India, believes that the strength of the US dollar is short-lived and once it starts to decline, gold prices could rise sharply on the exchanges. He also predicted that the US dollar could fall this Wednesday, when the US releases its Consumer Price Index (CPI) results. Speaking to Mint, he said: “The US CPI release this week is very important. If the US inflation data is positive, we could see a strong sell-off in the US dollar, which could lead to a sharp fall in the US dollar and a sharp rise in gold prices.”
Sharing the same view, Mr. Sugarandha Sachdeva - founder of financial analysis channel SS WealthStreet (India) said: " Looking ahead, the increase or decrease in gold prices may depend on the upcoming US inflation data this week". He also said that some factors such as the recent stable employment report from the US, along with the number of new jobs increased but wages decreased may affect the results of the inflation data report this week.
Overall, SS WealthStreet predicts that the global gold price trend in the coming time will remain bullish, with small price drops that can bring potential buying opportunities. In an interview with Mint, Mr. Sugarandha Sachdeva said: “In the coming days, we expect gold prices to reach $2,380/ounce. Investors should closely monitor economic indicators and geopolitical developments for potential impacts on gold prices, and pay attention to buying opportunities amid the bullish trend.”
In the international market, the Dollar Index (DXY), which measures the USD against 6 major currencies (EUR, JPY, GBP, CAD, SEK, CHF), has decreased slightly. Specifically, at 11:00 on April 10, 2024, the DXY index was at 104.12 points - down 0.03% compared to the previous trading session.
The VND/USD exchange rate today (April 10) was announced by the State Bank of Vietnam (SBV) to be adjusted to 24,037 VND/USD, down 1 VND after the end of the trading session on April 9. Currently, the exchange rate allowed for trading by commercial banks (CBs) fluctuates from 23,400 - 25,189 VND/USD. The USD exchange rate today has also been adjusted by the SBV Exchange to the buying and selling range from 23,400 to 25,189 VND/USD.
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| World gold price recorded at 11:06, April 10, 2024 |
According to Kitco, the world gold price recorded at 11:06 today, Vietnam time, was at 2,351.65 USD/ounce. Today's gold price decreased by 1.26 USD/ounce compared to yesterday's gold price.
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| Gold price listed by Saigon Jewelry Company Limited on April 10 |
Domestically, the price of SJC gold of Saigon Jewelry Company Limited is increasing. Recorded at 11:05 on April 10, the gold price was at 82.1 million VND/tael for buying and 84.1 million VND/tael for selling.
In response to the information about the rapid increase and decrease in gold prices in recent times, a representative of Bao Tin Minh Chau Company Limited recommended: “The domestic gold price is fluctuating strongly. Therefore, investors and people should consider carefully before trading and regularly monitor gold prices on official channels to make the right decisions.”
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