Editor’s Note
This article highlights a significant drop in gold prices, driven by a strong US dollar and shifting investor focus toward other assets. As markets evolve, understanding these dynamics is crucial for informed financial decisions.
Today, November 13, 2024, the price of gold fell below $2,600 per ounce, hitting its lowest level in nearly two months. This is due to the impact of a strong US dollar. Investors focused on fuel and the stock market, resulting in very little capital flowing into gold.
Domestic gold prices continued their sharp decline as recorded on the afternoon of November 12.
In Hanoi, SJC gold is bought at 80.5 million VND per tael and sold at 84.4 million VND per tael (both buying and selling prices dropped by 1.4 million VND per tael).
Phu Quy SJC gold: Buying price 80.8 million VND/tael – Selling price 84.1 million VND/tael (both buying and selling prices dropped by 1.3 million VND per tael).
DOJI gold in Hanoi and Ho Chi Minh City: Buying price 80.5 million VND/tael – Selling price 84.0 million VND/tael (both buying and selling prices dropped by 1.4 million VND/tael).
At Bao Tin Minh Chau Co., Ltd., SJC gold bars are traded at a buying price of 80.5 million VND per tael and a selling price of 84.0 million VND per tael (both buying and selling prices dropped by 1.4 million VND per tael).
Plain gold rings are traded among companies at a buying price of 81.23 million VND/tael (down 1.85 million VND/tael) and a selling price of 83.38 million VND/tael (down 1.55 million VND/tael).
Since SJC gold bar prices peaked, about 6 million VND per tael in value has “evaporated.”
Mr. Tran Huu Dang, Chairman of the ASEAN Jewellery Joint Venture Company (AJC), said there are almost no buyers in the market.
Influenced by a strong US dollar, the global gold price fell below $2,600 per ounce in afternoon trading on November 12, hitting its lowest level in nearly two months.
According to the World and Vietnam Newspaper, as of 6:00 PM on November 12, the global gold price on the Kitco exchange was $2,594.9 – $2,595.9 per ounce, down $24.2 from the previous trading day.
Investors are waiting for the release of key US economic indicators and statements from Federal Reserve officials for a clearer explanation of interest rate trends.
Analysts at Berenberg revealed that gold prices are under pressure due to President-elect Donald Trump’s pro-Bitcoin stance, adding that Bitcoin could act as a safe-haven asset replacing gold.
Gold is considered an inflation hedge, but high interest rates have diminished its appeal as a precious metal. According to CME’s FedWatch Tool, traders estimate a 65% chance of the Fed cutting rates in December 2024, down from about 80% before Trump’s election.
Market attention will focus on upcoming US economic indicators: the Consumer Price Index for October 2024 released on Wednesday (November 13), the Producer Price Index and weekly jobless claims on Thursday (November 14), and retail sales data on Friday (November 15).
During a Q&A session with State Bank of Vietnam Governor Nguyen Thi Hong on November 11, many attendees raised concerns about the gap between global and domestic gold prices, pointing out that gold prices hitting record highs are destabilizing the market. They added, “People wanting to buy gold feel dizzy and overwhelmed, and regulators are facing a headache.”
All attendees suggested that authorities find solutions to encourage people to abandon the mindset of hoarding gold and instead allocate resources to the economy.
The Governor of the State Bank of Vietnam stated that gold is currently a “headache” not only for Vietnam but for the whole world.
Before the State Bank of Vietnam intervened in the gold market, global gold prices were about $2,300 – $2,400 per ounce, but now they have risen to $2,700 per ounce.
Global gold prices have risen more than 50% this year.
Regarding the global market, Daniel Ghali, an analyst at TD Securities, mentioned, “The potential for high tariffs during President Donald Trump’s term and demand for holding dollars are putting pressure on gold prices, which is also related to the possibility of the Fed delaying rate cuts.”
Meanwhile, as crude oil prices plunged to $68 per barrel and US stock markets surged, investors turned their attention to fuel and stock markets. As a result, very little capital flowed into the precious metals market.
Furthermore, investors are concerned about reduced gold demand from China after the People’s Bank of China halted gold purchases for six consecutive months. Consequently, many sold gold for profit-taking, causing the price to plummet.
