World gold price does not "react negatively", SJC gold bars set new price, brighter future still awaits

Gold price today September 20, 2024: World gold price once reached a record of 2,600 USD/ounce after the Fed cut interest rates. The world's leading banks believe that the 2,600-2,700 USD/ounce mark is feasible for precious metals in the near future.

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Update gold price today September 20, 2024

World gold prices fluctuate very strongly.

According to the World and Vietnam Newspaper at 9:00 p.m. on September 19 ( Hanoi time), world gold trading is at 2,572.50 - 2,573.80 USD/ounce.

After the policy meeting, the US Federal Reserve (Fed) decided to reduce the base interest rate by 0.5 percentage points, to 4.75% - 5%, for the first time since 2020. At the same time, the Fed said that the US economy has made progress in cooling inflation but it is still at a high level. This information makes analysts predict that the Fed will reduce the rate by another 0.5 percentage point by the end of 2024 and by another 1 percentage point in 2025.

Immediately, financial investors dumped the USD, causing this currency to drop sharply. Gold became attractive to holders of other currencies. Gold speculators increased their purchasing power, causing the world gold price to surge to 2,600 USD/ounce. However, it then suddenly dropped below 2,550 USD, before recovering to 2,577 USD/ounce.

The Fed’s interest rate cut was a boost for precious metals. Initially, some observers thought that “gold prices reacted in the opposite direction” by falling sharply instead of rising as expected after the Fed’s decision. However, the sudden sharp decline in precious metal prices was due to investors aggressively taking profits at a time when gold prices reached record highs.

The precious metals market has been heating up since a week ago when news that the Fed was about to cut interest rates. However, in the longer term, during this policy meeting, the Fed Chairman said that the agency will not rush to continue adjusting interest rates.

“The Fed rate cut signals a move by investors to re-enter gold ETFs, a component largely absent from the strong gold rally seen over the past two years,” analysts Lina Thomas and Daan Struyven wrote in a research note. “However, ETF holdings will only increase gradually as the Fed cuts rates, so the gold price will see gradual changes from the Fed easing cycle. The magnitude of this increase cannot be fully predicted at this time.”

Domestic gold prices have simultaneously decreased in the context of fluctuating world gold prices.

The price of SJC gold bars simultaneously decreased by 200,000 VND/tael, losing the 82 million VND/tael mark, after reaching the highest price since the State Bank intervened in the market in June.

On September 19, major gold bar trading units such as SJC, DOJI, PNJ currently listed the price at 79.8 - 81.8 million VND/tael. Also on the same day, 4 state-owned banks (Vietcombank, BIDV, Vietinbank, Agribank) announced the selling price for SJC gold bars to the public at 81.8 million VND/tael.

The price of plain round gold rings decreased by about 100,000-200,000 VND/tael in the morning trading session on September 19, then gradually recovered. The price range of 77.9 - 79.2 million VND/tael is being applied by most businesses for 9999 gold rings.

Converted to the USD exchange rate at Vietcombank, the world gold price is currently equivalent to about 77 million VND/tael. Accordingly, compared to the world gold price, the price of SJC gold bars is 4.5-5 million VND higher, and gold rings are 2-2.5 million VND higher.

Gold price today September 20, 2024: World gold price does not 'react negatively', SJC gold bars set a new price, a bright future awaits. (Source: Kitco)

Summary of SJC gold bar prices at major domestic trading brands at the closing times of the trading session on the afternoon of September 19 :

Saigon Jewelry Company: SJC gold bars 79.8 - 81.8 million VND/tael; SJC gold rings 77.9 - 79.3 million VND/tael.

Doji Group: SJC gold bars 79.8 - 81.8 million VND/tael; 9999 round rings (Hung Thinh Vuong): 78.0 - 79.2 million VND/tael.

PNJ system: SJC gold bars 79.8 - 81.8 million VND/tael; PNJ 999.9 plain gold rings: 78.1 - 79.2 million VND/tael.

Phu Quy Gold and Silver Group: SJC gold bars: 79.8 - 81.8 million VND/tael; Phu Quy 999.9 round gold rings: 78.0 - 79.2 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at: 79.8 - 81.8 million VND/tael. The price of round gold rings at Vang Rong Thang Long is listed at 78.80 - 79.18 million VND/tael.

The $2,600-2,700 mark is feasible for gold prices

Gold may see a short-term pullback after the first Fed cut, but the future is still very bright for gold in 2025, according to the latest research and analysis from Goldman Sachs, UBS, TD Securities and Bank of America. Many analysts also share the same optimistic view on the trend of the precious metal in the coming time.

Heng Koon How, head of market strategy at UOB Global Economics and Markets Research, said that gold is showing bright potential. "We forecast that gold could reach $2,700 an ounce by mid-2025 and potentially reach $3,000 in the longer term," Heng Koon How, a specialist at UOB, predicted.

Forecasts from leading global banks also suggest that the $2,600-$2,700 mark is feasible for the precious metal next year. Goldman Sachs said that gold is in an "inexorable bull market" and updated its year-end forecast to $2,700/ounce.

Experts see the US Federal Reserve (Fed) as a positive driver for gold prices. In addition, according to experts, geopolitical tensions and central bank buying - two factors that have driven gold prices in recent times - will continue to be maintained. In addition, gold has increased by 23-25% by 2024 due to expectations of lower US bond yields and diversification away from the US dollar by central banks.

Analysts reiterated Goldman's forecast that the yellow metal will hit $2,700 an ounce on the spot market by early 2025.

Meanwhile, UBS analysts maintained their bullish outlook on gold from before the Fed began its easing cycle and, like Goldman Sachs, see the yellow metal trading at $2,700 an ounce, although they expect it to take until mid-2025 to reach that level.

Source: https://baoquocte.vn/gia-vang-hom-nay-2092024-gia-vang-the-gioi-khong-phan-ung-nguoc-vang-mieng-sjc-cai-dat-muc-gia-moi-tuong-lai-tuoi-sang-hon-van-dang-cho-286863.html