Gold prices are forecast to rise rapidly; will the USD continue to weaken?

Gold prices are predicted to rise "rapidly".

As of 5:00 AM on November 6, 2023, the gold prices on the exchanges of several companies were as follows:

DOJI lists the price of 9999 gold at 69.00 million VND/ounce for buying and 70.00 million VND/ounce for selling.

Meanwhile, at Mi Hong Gold and Gemstone Company, the listed price of SJC gold at the time of the survey was 68.80 - 69.80 million VND/ounce (buying price - selling price).

At Bao Tin Minh Chau Co., Ltd., the price of SJC gold is also being traded at 69.00 – 69.95 million VND/ounce (buying price - selling price). Meanwhile, at Bao Tin Manh Hai, it is being traded at 69.00 – 70.15 million VND/ounce (buying price – selling price).

Next week, there will not be many events affecting economic data. Investors and experts remain very optimistic about the prospects for gold's growth.

Experts believe that, amidst intense pressure from the US dollar, US Treasury bonds, and ongoing geopolitical instability in the Middle East, gold will surpass the $2,000 mark in the near future.

According to the latest Kitco News survey, 9 experts (equivalent to 60%) predict that gold prices will rise higher next week, while only 1 analyst (equivalent to 7%) forecasts a decrease, and the remaining 5 analysts (equivalent to 33%) predict that gold will remain stable next week.

Japanese Yen and VCB Yen exchange rates are trending downwards simultaneously.

The Japanese Yen exchange rates surveyed at various banks on the morning of November 6, 2023, are as follows:

At Vietcombank, the buying rate for JPY is 158.43 VND/JPY and the selling rate is 167.70 VND/JPY, a decrease of 0.37 VND and 0.39 VND respectively. At Vietinbank, the Yen exchange rate decreased by 0.06 VND in both buying and selling directions, equivalent to 159.17 VND/JPY and 168.87 VND/JPY. At BIDV, the buying rate increased by 0.02 VND and the selling rate decreased by 0.01 VND, reaching 160.24 VND/JPY and 168.51 VND/JPY respectively.

At Agribank, the buying and selling rates were 160.55 VND/JPY and 165.39 VND/JPY respectively – a decrease of 0.16 VND in the buying rate and 0.17 VND in the selling rate.

At Eximbank, the Japanese Yen exchange rate decreased by 0.26 VND in both buying and selling directions, reaching 160.61 VND/JPY and 165.19 VND/JPY respectively. At Techcombank, the Japanese Yen exchange rate decreased by 0.24 VND in the buying direction and 0.15 VND in the selling direction, reaching 156.51 VND/JPY and 168.88 VND/JPY respectively. At Sacombank, the Japanese Yen exchange rate decreased by 0.37 VND in the buying direction to 160.61 VND/JPY and by 0.34 VND in the selling direction to 167.23 VND/JPY.

Thus, according to the survey, Sacombank has the highest buying rate for the Japanese Yen and Eximbank has the lowest selling rate among the banks.

Will the USD continue to weaken this coming week?

The USD exchange rate is on a sharp decline today. The USD is trading below the important 106-point mark.

The central exchange rate of VND/USD, announced by the State Bank of Vietnam, has been adjusted to 24,084 VND/USD, a decrease of 15 dong compared to the same time on November 3rd.

Currently, the permitted exchange rate for commercial banks ranges from 23,400 to 25,238 VND/USD. The US dollar exchange rate has also been brought within the buying and selling range of 23,400 to 25,238 VND/USD by the State Bank of Vietnam's Exchange Department.

This morning, the USD exchange rate and domestic foreign exchange rates saw a series of downward adjustments at various banks. Specifically, Vietcombank's buying rate was 24,320 and the selling rate was 24,690, a decrease of 60 dong compared to the closing rate on November 3rd. The current buying and selling prices of USD range from 23,400 to 25,300 VND/USD.

The momentum for the US dollar's price was set by weak US labor market data and falling US bond yields due to weaker Non-Farm Payrolls (NFP) figures, which are expected to lead investors to believe that the Federal Reserve (FED) will not implement any further rate hikes.

Investors are betting that the Fed is about to end its tightening cycle, which appears to be weakening the dollar as the tightening effect becomes apparent.