Gold price today September 8 continues to decrease, opportunity to buy?
Gold prices fell sharply today, September 8, but many forecasts say that the long-term outlook for gold remains positive. Some analysts say that any decline should be seen as a buying opportunity.
Opening the trading session on September 8, the spot gold price today reached 1,930 USD/ounce. Gold for December delivery on the Comex New York floor was at 1,933 USD/ounce.
The re-increasing value of the USD has put considerable pressure ongold priceThe USD's upward momentum could continue to be reinforced if the US Federal Reserve (Fed) adopts a more dovish policy, as the latest statistics show that the unemployment rate in the US has decreased significantly.
Investors are now focusing on the European Central Bank (ECB) monetary policy meeting. The ECB will hold its monetary policy meeting on September 10. Any decision by the ECB on monetary policy will directly impact the Euro, thereby affecting the USD and gold prices.
The ECB has cut its key interest rate to 0% since 2016. However, the Euro is on a strong upward trend against the USD due to the Fed cutting interest rates to near 0% and unlimited quantitative easing. This week, the Euro/USD exchange rate reached 1,200 - the highest level in more than 2 years. The Euro has appreciated 12% since March 2020.
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A strong euro will further intensify the region’s deflationary momentum, which is not positive given the region’s continued negative economic growth in the first half of this year (first-quarter GDP -3.6% and second-quarter GDP -12.1%).
In addition,interest rate policyECB's room for adjustment has almost run out. In fact, the ECB can continue to cut interest rates to negative levels, but this does not support the regional economy in the current context. Therefore, it is likely that the ECB will continue to increase the size of the Covid-19 Government Bond Purchase Program (PEPP). Previously, at the June meeting, the ECB increased the size of the program by 600 billion euros, from 750 billion euros and extended the program until mid-2021.
If the ECB continues to increase the size of the PEPP program, causing the Euro to fall against the USD, gold prices will face further adjustment pressure.
The stronger US dollar is a big risk to gold prices right now, according to AxiCorp chief market strategist Stephen Innes.
Meanwhile, Carsten Menke, analyst at Julius Baer, said: “A higher US dollar is weighing on gold, while longer-term uncertainties persist in the market, putting a floor under prices.”
Menke added that gold is likely to trade sideways “as recession fears have been priced in and investors are now waiting to see what happens next in central bank policy.”
Despite the recent sharp decline in gold prices, many forecasts suggest that the long-term outlook for gold remains positive. Some analysts believe that any dip should be viewed as a buying opportunity.
As a result, countries will not be able to end their economic stimulus measures soon. As a result, inflation will gradually increase and real bond yields will decrease.
In the domestic market, opening the trading session on September 8, today's gold price was listed by PNJ Hanoi and PNJ Ho Chi Minh City at 55.90 - 56.45 million VND/tael (buy - sell).
At SJC Hanoi, today's gold price is listed at 55.65 million VND/tael (buy) and 56.50 million VND/tael (sell).
Today's gold price at Bao Tin Minh Chau is listed at 55.75 million VND/tael (buy) and 56.35 million VND/tael (sell). Phu Quy listed today's gold price at 55.70 - 56.50 million VND/tael (buy - sell).
