Heavy losses, investors face risks

Updated gold price at the end of session 4.2. Illustration photo: Tung Giang

Domestic gold price

Update domestic gold price on the morning of February 4, 2024.

Domestic gold price developments. Unit: Million VND/tael. Graphics: Khuong Duy

Overall, domestic gold prices increased sharply last week. However, the difference between buying and selling gold last week was too high, causing investors to suffer losses.

Specifically, if buying gold at DOJI Group in the session of January 28 at the price of 76.65 million VND/tael and selling it in today's session (February 4), investors will lose 700,000 VND/tael. Meanwhile, those who bought gold at Saigon Jewelry Company SJC also lost 1.1 million VND/tael.

The current difference between buying and selling gold prices is listed at 2.3 million VND/tael. This difference is considered very high. Investors face the risk of loss when businesses push the risk onto buyers.

World gold price

World gold price developments. Unit: USD/ounce. Chart: Phan Anh

Gold price forecast

World gold fell amid a strong increase in the USD. At 5:00 p.m., the US Dollar Index, which measures the greenback's fluctuations against six major currencies, stood at 103.825 points (up 0.93%).

Investors now see a 78% chance of a rate cut by May 2024, down from a 92% chance before the Labor Department data, according to the CME Fed Watch tool. Lower interest rates increase the appeal of the precious metal.

Kitco News' latest weekly gold survey shows that, with two-thirds of experts losing confidence in the precious metal, most retail investors still expect prices to rise next week.

Twelve analysts participated in the Kitco News Gold Survey, and Wall Street sentiment appears to have turned sharply bearish on the precious metal’s near-term outlook. Only two experts, or 17%, predict gold prices will go higher next week, while eight analysts, or 66%, predict gold prices will fall. Another two experts, or 17%, predict gold prices will be flat next week.

Meanwhile, 123 votes were cast in Kitco’s online poll, with the majority remaining bullish. 66 retail investors, or 54 percent, expect gold to rise next week. Another 27, or 22 percent, predict lower prices. Meanwhile, 30 respondents, or 24 percent, are neutral on the precious metal’s near-term outlook.

Source: https://laodong.vn/tien-te-dau-tu/cap-nhat-gia-vang-chot-phien-42-lo-nang-nha-dau-tu-doi-dien-rui-ro-1301049.ldo