Gold ring price makes history amid 'fever', demand flows from East to West, the reason why 'gold is never expensive or cheap'

Gold price today October 29, 2024: Gold prices are trending down, under pressure from a stronger USD. Gold ring prices are trending down slightly. Russia is increasing its reserves. Demand for precious metals is flowing from East to West.

Update gold price today October 29, 2024

Domestic gold price on the morning of October 28 was stable.

Accordingly, Saigon Jewelry Company (SJC), DOJI Jewelry Group announced the price of SJC gold bars at 87 - 89 million VND/tael (buy - sell), keeping the listed price in both buying and selling directions unchanged compared to the previous closing price.

Regarding the price of gold rings, DOJI Gold and Gemstone Group listed the price of gold rings at 87.9 - 88.9 million VND/tael (buy - sell), keeping the listed price unchanged in both buying and selling directions compared to the previous session's close.

Meanwhile, Phu Nhuan Jewelry Joint Stock Company announced the price of gold rings at 87.6 - 88.9 million VND/tael (buy - sell), keeping the listed price unchanged in both buying and selling directions compared to the previous session's close.

Thus, the price of gold rings is still close to that of gold bars at 88.9 million VND/tael. Previously, gold rings increased continuously for 10 consecutive days and compared to the beginning of the year, gold rings increased by 25 million VND/tael, equivalent to a 40% performance.

Up to now, the price of SJC gold bars has always been higher than the price of gold rings and at times the difference was up to nearly 20 million VND/tael. However, since June, the price of SJC gold bars has remained stable, while the price of gold rings has continuously reached new peaks. This makes it the first time in history that the price of gold rings is 1 million VND/tael higher than the price of SJC gold bars.

Gold price today October 29, 2024: Gold ring price makes history amid 'fever', demand flows from East to West, the reason why 'gold is never expensive or cheap'. (Source:shutterstock)

Summary of gold prices at major domestic trading brands at the closing time of the trading session on the afternoon of October 28:

Saigon Jewelry Company SJC: SJC gold bars 87 - 89 million VND/tael; SJC gold rings 87 - 88.5 million VND/tael.

Doji Group: SJC gold bars 87 - 89 million VND/tael; 9999 round rings (Hung Thinh Vuong) 87.7 - 88.7 million VND/tael.

PNJ system: SJC gold bars 87 - 89 million VND/tael; PNJ 999.9 plain gold rings: 87.6 - 88.89 million VND/tael.

Phu Quy Gold and Silver Group: SJC gold bars 87.3 - 89 million VND/tael; Phu Quy 999.9 round gold rings: 87.7 - 88.9 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at 87 - 89 million VND/tael. The price of round gold rings at Vang Rong Thang Long is listed at 87.88 - 88.88 million VND/tael.

Thus, compared to the morning session of October 28, in the afternoon session of the same day, the price of gold rings at businesses tended to decrease, in which, Doji Group listed a decrease of 200,000 VND/tael in both buying and selling directions.

According to the World and Vietnam Newspaper , information on Kitco News , as of 6:01 p.m. Vietnam time on October 28, the world gold price was listed at 2,732.6 USD/ounce, down 16.3 USD/ounce compared to the previous trading session.

Converted according to USD price at Vietcombank on October 28, 1 USD = 25,464 VND, world gold price is equivalent to 83.83 million VND/tael.

Gold prices fell on October 28, pressured by a stronger dollar and higher Treasury yields as traders awaited a slew of US economic data for guidance on the Federal Reserve's interest rate stance.

Spot gold fell 0.6% to $2,731.79 an ounce at 10:27 GMT. Bullion hit a record high of $2,758.37 an ounce on October 23, boosted by safe-haven demand amid market risks from ongoing conflicts in the Middle East and Ukraine.

The dollar index (.DXY) is on track for its best month since April 2022, with the currency's strength making gold less attractive to buyers holding other currencies. Meanwhile, the yield on the benchmark 10-year Treasury note rose to a three-month high.

"The prospect of lower US interest rates could further support investment demand and lift gold prices. We expect gold to reach $2,900 an ounce in the next 12 months," said UBS analyst Giovanni Staunovo .

Key data this week includes ADP employment on Wednesday, US Personal Consumption Expenditures (PCE) figures on Thursday and the payrolls report due on Friday.

Traders see a near 95% chance of a 25 basis point cut by the Fed in November, which would further support non-yielding gold.

In physical terms, China's gold consumption fell 11.2% year-on-year in the first three quarters of 2024 as high prices dampened demand for jewelry.

“While physical gold demand in Asia, especially in China, has been weak recently, I think the center of gravity when it comes to gold demand is shifting from East to West,” added analyst Staunovo.

Meanwhile, in the Asian market, gold prices also decreased in the afternoon trading session on October 28 due to the strong USD.

The value of gold is increasing

In an article published on Good Returns on October 28, Mr. Amit Modak, CEO of PN Gadgil & Sons, commented that gold is currently reacting to geopolitical instability in the Gulf region, the Russia-Ukraine conflict...

As these conflicts unfold, their effects extend beyond borders, affecting global markets and energy supplies. In addition, the interaction of economic factors, such as a weak US dollar and rising demand for precious metals, complicates the situation.

In addition, the Indian economy is also struggling, leading to increased demand for gold and silver. On the other hand, Japan is facing challenges related to interest rate adjustments and reduced productivity. Meanwhile, China is also facing economic difficulties, leading to increased demand for gold and silver. Russia has started to hoard gold to ensure financial security.

In turn, gold-producing countries have asked their respective institutions to sell 20% of their gold to their domestic central banks, further affecting the supply and availability of the precious metal. Together, these factors are affecting the supply and availability of gold. The cumulative effect of all these impacts has resulted in the value of gold rising.

While the gold price rally appears to be driven by negative economic conditions, the sudden price increases should not be viewed as isolated events. Since the start of this uptrend, gold prices have risen from $2,180 an ounce to $2,220 an ounce and finally reached $2,680 an ounce, marking a 15% increase from $2,200 an ounce to $2,680 an ounce in just 45 days. However, such rapid growth can be volatile, as corrections often follow previous gold price increases.

Over the past two years, many central banks around the world have significantly increased their purchases of gold. This increased demand has contributed to the increase in the value of the precious metal. Many Indians believe that as the value of gold increases, the asset becomes more expensive.

However, it is important to understand that gold is never expensive or cheap. If the price of gold increases, the value of the 100 or 500 grams purchased earlier will also be affected. Therefore, it is wrong to view gold only in terms of whether it is expensive or cheap. It is in the interest of investors, especially in India, to hope that the price of gold will increase in the future.

The continued rise in gold prices is a positive development for those who have been buying gold for years, as it increases their profits. By 2025, the US money supply is expected to increase by 24% compared to 2020, with national debt reaching nearly $36 trillion – a 15% increase from June 2023. This trend is reflected globally, where public debt has reached $315 trillion, with $210 trillion owed by governments in developing and developed countries. This scenario shows governments spending significantly more than they earn, having to print money to cover expenses.

Printing more money reduces purchasing power, causing the public to invest in gold as a hedge. Gold is considered a safe investment in times of economic uncertainty and rising public debt, as it tends to retain its value even when currency values ​​fluctuate. Therefore, the increased demand for gold as a safe investment is pushing the price of gold up, and it is unlikely to fall anytime soon.

With governments increasingly resorting to printing money to manage their mounting debts, the demand for gold as a safe haven investment is likely to continue. Therefore, investors should remain vigilant and consider the interconnected nature of geopolitical events and economic conditions in this complex landscape. Understanding this interplay is crucial to making informed investment decisions, as both gold and silver are poised for further growth in the coming years.

Source: https://baoquocte.vn/gia-vang-hom-nay-29102024-gia-vang-nhan-lam-nen-lich-su-giua-con-sot-nhu-cau-chay-tu-dong-sang-tay-ly-do-noi-vang-khong-bao-gio-dat-hay-re-291672.html