Gold price today April 8, 2024: Strong buying power, gold keeps rising

Gold price today April 8, 2024: Strong buying power, gold keeps rising

Gold price today, April 8, on the world market is forecast to continue to increase this week. Strong buying power in the market is an important factor supporting gold price.

World gold price is boiling, domestic price is climbing

The world gold price in the last session of the week (April 6) increased sharply and surpassed the optimistic calculations of many leading experts in the world. After surprisingly surpassing the threshold of 2,300 USD/ounce, gold adjusted down but very quickly after that, it skyrocketed to nearly 2,330 USD/ounce.

This is a spectacular breakthrough because many organizations had predicted that gold would reach an average of 2,100 USD/ounce in 2024. Some boldly said that the gold price would rise to 2,200-2,400 USD/ounce, but the acceleration will fall in the second half of the year, when the US Federal Reserve (Fed) begins to reverse monetary policy and reduce interest rates.

However, gold prices have broken out despite the USD still hanging high.

The world spot gold price has maintained the 2,000 USD/ounce mark since the end of February and then successfully conquered the unprecedented high of 2,100 USD/ounce in March, then broke out to 2,200 USD/ounce at the end of March before gently breaking the 2,300 USD/ounce mark in early April.

Immediately after surpassing the threshold of 2,300 USD/ounce, selling pressure pulled the world spot gold price below this level, but only for one session before breaking out to 2,330 USD/ounce as seen.

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World gold prices continuously set new peaks, domestic prices hover around 82 million VND/tael. Photo: HH

The USD is at a high level, but the world gold price has continuously reached new peaks over the past month. The paradox is that the US Federal Reserve (Fed) has continuously delayed interest rate cuts, from the expected 4 cuts in 2024 being reduced to 3 times in the meeting on March 21, to the statement of Fed officials last week that only 2 times and then 1 time.

On the night of April 5, Fed Board of Governors member Michelle Bowman delivered a surprising message to the market, saying that interest rates would likely have to go higher to control inflation, rather than the cuts her colleagues had pointed out and the market was expecting.

Policymakers need to be careful not to loosen policy too quickly due to potential risks from inflation, Ms. Bowman noted.

Domestically, gold prices also broke through following the world, although the gap with the converted international price has narrowed. In the session on Saturday, April 6, SJC gold price jumped to nearly 82 million VND/tael, while gold rings in some places exceeded 74 million VND/tael, an increase of another million VND/tael.

What is the target for gold prices in this fever?

The question is: What is the destination for world gold prices in this feverish price increase and to what level will the prices of SJC gold bars, gold rings, and jewelry gold climb?

In a recent report, Swiss group MKS Pamp said that the ceiling price of gold for 2024 in the previous report has now become the floor price.

In January, MKS Pamp predicted that gold prices would average $2,050 an ounce in 2024, with a low of $1,900 and a high of $2,200 an ounce. But so far, gold prices have surpassed the $2,200 an ounce threshold. Meanwhile, the demand for physical gold from central banks around the world remains relentless.

MKS Pamp now raises its gold price forecast to an average of $2,200/ounce in 2024, with a low of $2,000/ounce and a high of $2,475/ounce (equivalent to nearly VND 76 million/tael), or even close to $2,600/ounce.

However, MKS Pamp also warned that this organization has not taken into account the betting trend of the market. Accordingly, Western investors still invest quite low in gold because they still consider the long-term history of gold fluctuations.

In addition, there is also the impact of the world's major "gold players", including central banks of countries. Demand will skyrocket if they are forced to buy gold (which can finance wars, including the cold war)...

According to many experts, the surge in gold prices to new peaks shows that this commodity is no longer only mainly influenced by economic data and traditional US market psychology as before, but has become a global monetary metal.

On Kitco, expert Nicholas Frappell of ABC Refinery said that the surge in gold buying could be due to the risk-off momentum from the strong stock markets in the West. But the main driver, he said, is gold buying because of a weakening Chinese economy.

Historically, corresponding to the Fed's rate cuts in 2000, 2006 and 2018, gold prices increased by 57%, 235% and 69% respectively.

This rally, including last weekend's breakout, has seen gold prices rise about 17.5% since hitting the $2,000/ounce support level in mid-February.

Thus, the breakthrough seems to have just begun, especially in the context of many countries wanting to reduce their dependence on the US dollar and increasing geopolitical tensions in many regions of the world, including the heated Middle East region between Israel and Palestine as well as Iran.

However, many experts on Kitco believe that gold prices may witness downward adjustments after the shocking increases.

According to a Kitco survey, 75% think gold prices will increase in the new week, while 8% predict a decrease.

In the country, the difference between the SJC gold price and the converted world gold price has narrowed to about 11 million VND/tael (calculated according to the bank exchange rate). If the world gold price goes up to 2,475 USD/ounce (equivalent to nearly 76 million VND/tael) and the difference narrows to about 6 million VND/tael, the price of SJC gold bars will be around the historical peak of 82-83 million VND/tael. The price of gold rings can maintain a difference of about 2-4 million VND/tael.

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