Massive drop after reaching historic peak

The domestic gold price opening today's trading session was listed by DOJI Group at 72.2 million VND/tael for buying; the selling price was 73.7 million VND/tael.

The difference between buying and selling price of gold at DOJI is 1.5 million VND/tael.

Compared to the opening session yesterday, gold price at DOJI decreased by 1 million VND/tael for buying and decreased by 900,000 VND/tael for selling.

Meanwhile, Saigon Jewelry Company listed the buying price of gold at 72.5 million VND/tael; the selling price is 73.7 million VND/tael.

The difference between buying and selling price of gold at Saigon Jewelry Company SJC is 1.2 million VND/tael.

Compared to yesterday's opening session, gold price at Saigon Jewelry Company SJC decreased by 700,000 VND/tael for buying and selling.

The difference between buying and selling SJC gold is being widened by trading units. This puts investors at higher risk of loss.

World gold price developments. Source: Kitco

The world gold price as of 10:35 am today, listed on Kitco, was at 2,044 USD/ounce. Compared to the opening of the previous trading session, the world gold price decreased by 2.1 USD/ounce.

Gold prices reacted slightly after the latest report on the strength of the US economy in the third quarter. Data from the US Department of Commerce released on November 29 showed that the country's GDP increased by 5.2% in the third quarter of 2023 (adjusted on an annual basis). This figure is higher than the 4.9% from the preliminary data and also higher than the forecast of 5% increase from economic experts.

Contributing to the growth of US GDP is the increase in fixed investment (excluding housing), which includes construction, equipment and intellectual property. In the third quarter of 2023, this item grew 1.3%. In addition, US government spending also contributed to the growth of GDP in the third quarter, with a growth of 5.5%. In contrast, consumer spending was revised down, increasing only 3.6% in the third quarter of 2023, lower than the 4% figure in the preliminary estimate.

Following the GDP report, the yield on the 10-year US Treasury bond fell below 4.3% for the first time since September. The greenback rebounded slightly but still recorded a sharp decline for the entire month of September. The current belief of many investors is that the US Federal Reserve (FED) has completed the monetary tightening process and interest rate cuts will take place in 2024. This is the main reason for the decline of the USD and the demand for other assets such as gold...

A weaker dollar and lower interest rates after slightly more dovish comments from Fed officials have helped gold rise, said UBS analyst Giovanni Staunovo, adding that the next level of resistance could be the record highs set in 2020.

“The prolonged economic uncertainty and the prospect of lower interest rates bodes well for gold,” said Ryan McIntyre, senior portfolio manager at Sprott Asset Management.

Gold will also continue to benefit from safe-haven demand due to geopolitical tensions, and with those factors in mind, SocGen analysts see a move above $2,000 as the start of a broader rally that could see gold prices hover around $2,200 an ounce in 2024.

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