World gold prices plummeted 1% after the latest policy meeting of the US Federal Reserve did not promise a time to cut interest rates. Meanwhile, domestic SJC gold continued to increase by 500,000 VND/tael in both directions.
Gold price today January 4: World gold plummeted after the Fed’s latest policy meeting
Gold prices fell about 1% to $2,040 an ounce on Wednesday, heading for the biggest percentage drop in more than three weeks, after the minutes of the US Federal Reserve’s latest policy meeting (Fed) ) does not show certainty about when interest rates will be cut.
Spot gold fell 1%, to a nearly two-week low of 2,037.61 USD/ounce, the largest decline since December 11. US gold futures fell 1.5%, at $2,042.80.
Evolution of world gold prices. Source: Tradingeconomics
According to the minutes of the latest US Federal Reserve FOMC policy meeting, Fed officials appear increasingly confident that inflation is under control, with “upside risks” easing and concerns growing. Increasingly, “overly restrictive” monetary policy can damage the economy.
The message coming out of the Fed’s December meeting minutes is “Hold your hours” – even though we’ve seen highs, said Tai Wong, an independent metals trader based in New York. over the cycle but rate cuts will take longer, especially as financial conditions loosen and uncertainty is high.
The minutes said that many participants in the meeting expressed “uncertainty” about the prospect of cutting interest rates, and many even believed that the Fed still had the ability to raise interest rates further.
Investors are now predicting a 70% chance the Fed will cut interest rates starting at its March meeting, while balanced economists think it will delay until closer to mid-year. Lower interest rates reduce the opportunity cost of holding non-yielding gold.
Evolution of world gold prices. Source: Tradingeconomics
The dollar index rose 0.3%, making gold more expensive for holders of other currencies.
Investors are now eagerly awaiting a series of US economic data this week, including Friday’s nonfarm payrolls report.
Markets are also watching developments in the Middle East after the Israel-Hamas conflict spread to Lebanon with the death of a Hamas deputy leader in Beirut.
“Gold is holding steady as the market still grapples with the prospects surrounding a Fed rate cut this year,” said Han Tan, chief market analyst at Exinity Group. “Spot gold will maintaining a bullish bias as long as the Fed rate cut narrative is likely to remain intact. However, the precious metal could be forced to pare recent gains if the Fed is unable to continue its policy pivot as predictions for 2024.”
Gold price today January 4: Domestic gold increased by 500,000 VND/tael, only one business adjusted to reduce gold price
Despite the government’s instructions to stabilize the domestic gold market, SJC gold still increased strongly yesterday. There was a time when SJC gold increased by 1 million VND/tael in both directions to 73 and 76 million VND/tael for buying and selling. Then it decreased to 72.5 and 75.5 million VND/buy and sell volume. At the time of the survey at 6:45 a.m. this morning, SJC gold prices nationwide are currently maintaining the same trading level of 72.5 and 75.5 million VND/tael of buying and selling.
In Hanoi and Da Nang areas, SJC gold price is listed at 72.5 million VND/tael purchased and 75.52 million VND/tael sold. In Ho Chi Minh City, SJC gold is still buying at the same level as in Hanoi and Da Nang areas but selling is 20,000 VND lower. Thus, compared to yesterday morning, SJC gold price continues to be adjusted to increase by 500,000 VND in both directions.
SJC gold bars are currently being purchased by Phu Quy at the price of 72.5 million VND/tael and sold at 75 million VND/tael, an increase of 1.5 million VND on the buying side, keeping the selling side unchanged.
At PNJ, SJC gold bar price is listed at 73 million VND/tael purchased and 76 million VND/tael sold, an increase of 500,000 VND in both buying and selling.
Meanwhile, Bao Tin Minh Chau adjusted down 600,000 VND on the buying side to 72.6 million VND/tael and 100,000 VND/tael on the selling side to 74.9 million VND/tael compared to the same time yesterday morning.
The difference between domestic and world gold prices has widened to over 15 million VND/tael.
Domestic SJC gold price developments. Source: giavang.org
Unit: x1000 VND/tael
