Gold prices face resistance on the way to conquering the $2,000/ounce mark

October 27, 2023 10:41 Nhat Linh Print article

ANTD.VN - The increase in gold prices slowed down after the US GDP data for the third quarter was better than expected, falling in favor of the "hawks" on monetary policy.

In the domestic market, yesterday's trading session, gold prices recovered strongly, regaining almost all of what was lost in the previous session. Accordingly, SJC gold increased by 250 - 350 thousand VND per tael.

However, the precious metal failed to maintain its upward momentum in today’s session. Accordingly, Saigon Jewelry Company (SJC) kept the price of SJC gold brand unchanged at 70.05 – 70.77 million VND/tael (buy – sell), unchanged from yesterday’s closing price.

At DOJI Group, SJC gold increased slightly by 50 thousand VND per tael, to 70.00 - 70.80 million VND/tael. Meanwhile, in the opposite direction, Phu Quy SJC decreased by 50 thousand VND/tael, listed at 69.90 - 70.70 million VND/tael; Bao Tin Minh Chau remained at 70.06 - 70.73 million VND/tael...

Meanwhile, after yesterday's strong increase, the price of gold rings of enterprises this morning continued to maintain this historical record price. In which, PNJ gold is trading at 58.20 - 59.30 million VND/tael. Bao Tin Minh Chau round rings are 58.68 - 59.63 million VND/tael.

Giá vàng trong nước ít biến động sáng nay ảnh 1

Domestic gold prices fluctuated little this morning.

In the world market, the spot gold price in the US market on October 26 (last night, Vietnam time) continued to increase slightly by 5 USD/ounce, closing at 1,984.5 USD/ounce. Although still achieving an increase, the upward momentum of the precious metal has somewhat cooled down when during the session, at times the precious metal almost reached 1,990 USD/ounce.

Gold's upward move met some resistance after a slightly stronger-than-expected US economic report fell on US monetary policy hawks who want the Federal Reserve to make a decision on further interest rate hikes.

Specifically, on Thursday, the first estimate of the top economy's third-quarter GDP increased at a 4.9% annual rate, the highest since the fourth quarter of 2021 and much higher than the second quarter's 2.1% / year. Economists polled by Reuters had previously forecast GDP increased at 4.3%.

However, the inflation index in GDP data was controlled, which somewhat minimized the negative impact on gold prices, helping it maintain green.

Despite the better growth data, many analysts still believe today's GDP report will have no impact on the US Federal Reserve's near-term monetary policy.

According to CME's FedWatch tool, financial markets expect interest rates to remain unchanged at the November FOMC meeting.

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