The week ending 27/9 saw spot gold prices fall by about 100 US dollars, settling at 4,284 US dollars an ounce. Concerns over the Federal Reserve maintaining high interest rates and rising US bond yields are driving the precious metal's price down.
Domestically, gold bars mirrored global trends, dropping over 3 million dong to 144,4 million dong per tael by week's end. SJC's plain round rings also decreased to 143,9 million dong, while other brands ranged between 144,5 and 145 million dong.
For the current week, most experts predict gold prices will struggle to achieve a significant breakthrough. A Kitco News survey of 14 Wall Street analysts revealed that five experts anticipate price increases. Four individuals believe gold could continue to decline, with the remainder expecting prices to trade sideways.
In contrast, an online poll of 152 individual investors showed buyers overwhelmingly dominant. 86 traders, representing 57% of participants, expect gold prices to rise. 35 predict a decrease, with the rest opting for a sideways trend.
James Stanley, an expert at Forex.com, forecasts a drop in gold prices due to surging bond yields. By the close of last week, US government bond yields reached 5,17%. During the week, this indicator briefly touched 5,2%, its highest point since 2007.
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Vang thoi duoc trung bay tai van phong cua GoldSilver Central o Singapore. Anh: Reuters
Adam Button, Head of Currency Strategy at InvestingLive, shares this view, noting that gold typically declines whenever bond yields surpass the 5% mark. The precious metal is currently under pressure as a risk asset, but Button sees these current corrections as accumulation opportunities.
Meanwhile, Marc Chandler, Managing Director at Bannockburn Global Forex, leans towards a price increase scenario. He believes expectations for a Federal Reserve rate hike appear to have peaked or are nearing their peak, a sentiment reinforced by upcoming crucial US economic data.
The US is scheduled to release its August personal consumption expenditures (PCE) index on 30/9. Some methodological adjustments are expected to ease inflation pressure, while September job growth may be weaker. "Even so, gold needs to surpass the 4,400 US dollar mark to achieve a breakthrough", Marc Chandler stated.
Darin Newsom, a senior market analyst at Barchart, also noted that, technically, December gold futures are in an oversold region on short-term charts. Therefore, the precious metal could see an upward movement this week.
However, he believes the overall market situation shows no significant new developments. US government bond yields remain elevated amid inflation pressures, while central bank demand for gold accumulation remains steady.
Trong Hieu (according to Kitco)
