Gold price today December 28

Gold price today December 28: World gold increased sharply, central banks net bought 800 tons of gold to accumulate since the beginning of the year

The world gold price today, December 28, was trading at 2,079.5 USD/ounce. Gold remained above $2,060 an ounce on Wednesday, hovering near its highest level in more than three weeks. Gold prices benefit largely from the weakening dollar and lower bond yields as inflation in the US eases. These bolster bets that the Federal Reserve will start cutting interest rates next year.

The London Bullion Market Association (LBMA) said the benchmark gold price in London hit an all-time high of $2,069.40 an ounce at Wednesday afternoon’s auction, surpassing the previous record of 2,067.15. USD was established in August 2020.

World gold prices continued to increase when the USD Index continued to drop to 100.9 points. The main reason is that the market increasingly believes that the US will start reducing interest rates in March 2024. Accordingly, the USD dropped to its lowest level in the past 5 months, helping today’s gold price become attractive.

In a recent interview with BNN Bloomberg, Pierre Lassonde, chairman emeritus of Franco-Nevada Mining, said he believes the US dollar has peaked “and gold is a counter to the US dollar, because So that’s one of the reasons why I’m so bullish on gold prices for 2024.” He also said inflation next year will be “stable”, around 3-4%, and noted that the federal government will run a $2 trillion deficit and suggested that interest rates will fall because of the election. system. Lassonde said: “What does the Fed do in an election year? They want to make it easier for incumbents to win elections. So interest rates will go down but that won’t happen in Europe, I think the euro will go up against the US dollar, all the other currencies will go up and gold will go up.”

When asked if cryptocurrencies are limiting gold’s upside, Lassonde pointed out that no central banks are buying cryptocurrencies but many of them are buying gold.

Ultimately, Lassonde said that gold stocks are trading as if gold were at $1,500 an ounce, about half their true value, so he sees 2024 as a bottoming year for most gold stocks.

Central banks bought a record 1,136 tons of gold last year and followed that up with 228 tons in the first quarter, the highest ever for a first quarter. The World Gold Council said central bank gold demand in the first half of the year was at a record high since 2000. Gold demand continued to be strong in the third quarter, with central banks buying a total of 337 tonnes . According to the World Gold Council’s most recent quarterly report: “Global official gold reserves have increased by more than 120% compared to the previous quarter and are the second highest total third-quarter reserves after the third quarter of 2022.” “According to the beginning of the year, central banks have net purchased 800 tons, 14% higher than the same period last year.”

Arguably, the main reason central banks buy gold is because gold is the solution to currency devaluation. In the extreme hypothetical case where all other asset classes are destroyed, including currencies, only gold remains.

“Gold is currently the only real defense against the loss of purchasing power of traditional currencies,” writes Daniel Lacalle, the economist mentioned above. Considering that central banks are looking to impose their own digital currencies, gold once again proves that it is an essential asset in portfolios where investors try to escape the collapse of currency as we know it.”

Gold price today December 28: SJC gold continues to increase strongly

Domestic SJC gold price today continued to increase sharply in both buying and selling directions. Currently, the prices of gold bars recorded by brands at 9am this morning are listed specifically as follows.

SJC gold price in Hanoi and Da Nang area is listed at 78.3 million VND/tael purchased and 79.82 million VND/tael sold. In Ho Chi Minh City, SJC gold bought at a similar level but sold for 20,000 VND/tael lower. So compared to yesterday’s session, SJC gold price increased to 600,000 VND in both buying and selling directions.

SJC gold bars in Phu Quy are buying at prices of 78.2 million VND/tael for buying and 79.8 million VND/tael, an increase of 900,00 VND on the buying side and 600,000 VND on the selling side.

The price of SJC gold bars at PNJ is listed at 77.8 million VND/tael purchased and 79.6 million VND/tael sold, an increase of 500,000 VND in both directions compared to yesterday morning.

Bao Tin Minh Chau has adjusted the price of SJC gold by 850,000 VND on the buying side and 400,000 VND on the selling side to 78.15 million VND/tael and 79.6 million VND/tael, respectively.

Unit: x1000 VND/tael