Deep drop during the day no news, where will gold be today
This morning, world gold prices decreased with spot gold down 10.6 USD to 1,915.2 USD/ounce. Gold futures last traded at 1,935.1 USD/ounce, down 10.5 USD compared to yesterday morning.
In the trading session earlier this week, world gold prices were strongly affected by the rise of the USD and rising bond yields. Rising US Treasury yields hit multi-year highs, increasing the opportunity cost of holding non-yielding assets like gold, while the US Dollar Index hit a new high in 6.5 months reduces the attractiveness of this precious metal to buyers holding other currencies.
Experts believe that, in the short term, the hawkish stance of the US Federal Reserve (Fed) at the recent monetary policy meeting will continue to be a catalyst to push bond yields and the USD up. , putting great pressure on precious metals.
Meanwhile, looking at the long term, the optimistic view on gold is still maintained. In its recent outlook report, Société Générale Bank of France said that it still maintains a positive view on precious metals because inflation is still high in the context of the Fed's plan to end the tightening cycle. chop. Despite gold's lackluster performance over the summer, SocGen remains optimistic that prices can return to $2,000 an ounce.
These banking experts also predict that gold prices will likely increase to $2,200 per ounce by the end of 2024 as investors realize how difficult it will be for central banks to bring inflation to bear. core down to the target level of 2%.
While SocGen is bullish on gold, it also notes that the precious metal faces a challenging road ahead as holdings in the world's largest gold-backed exchange-traded fund have dropped to the lowest level since January 2020. Specifically, since the beginning of June, 129 tons of gold have been withdrawn from trading funds. If there is no catalyst to motivate investors, capital flows will likely continue to flow out of these funds.
With the domestic gold price falling and the world gold price listed at Kitco at 1,915.2 USD/ounce (equivalent to nearly 56.6 million VND/tael if converted according to Vietcombank exchange rate, excluding taxes and fees), the difference is between domestic and world gold prices is over 12 million VND/tael.
In the trading session earlier this week, world gold prices were strongly affected by the rise of the USD and rising bond yields. Rising US Treasury yields hit multi-year highs, increasing the opportunity cost of holding non-yielding assets like gold, while the US Dollar Index hit a new high in 6.5 months reduces the attractiveness of this precious metal to buyers holding other currencies.
Experts believe that, in the short term, the hawkish stance of the US Federal Reserve (Fed) at the recent monetary policy meeting will continue to be a catalyst to push bond yields and the USD up. , putting great pressure on precious metals.
Meanwhile, looking at the long term, the optimistic view on gold is still maintained. In its recent outlook report, Société Générale Bank of France said that it still maintains a positive view on precious metals because inflation is still high in the context of the Fed's plan to end the tightening cycle. chop. Despite gold's lackluster performance over the summer, SocGen remains optimistic that prices can return to $2,000 an ounce.
These banking experts also predict that gold prices will likely increase to $2,200 per ounce by the end of 2024 as investors realize how difficult it will be for central banks to bring inflation to bear. core down to the target level of 2%.
While SocGen is bullish on gold, it also notes that the precious metal faces a challenging road ahead as holdings in the world's largest gold-backed exchange-traded fund have dropped to the lowest level since January 2020. Specifically, since the beginning of June, 129 tons of gold have been withdrawn from trading funds. If there is no catalyst to motivate investors, capital flows will likely continue to flow out of these funds.
With the domestic gold price falling and the world gold price listed at Kitco at 1,915.2 USD/ounce (equivalent to nearly 56.6 million VND/tael if converted according to Vietcombank exchange rate, excluding taxes and fees), the difference is between domestic and world gold prices is over 12 million VND/tael.
✔️TP : 1918
✔️TP : 1922
⚠️SL : 1908