Gold prices rise sharply again

Domestic gold price

At the end of the trading session on December 6, the domestic 9999 gold price was listed by SJC and Doji Gold and Gemstone Group in the following order of buying and selling:

SJC Hanoi: 66.35 million VND/tael - 67.17 million VND/tael

Doji Hanoi: 66.10 million VND/tael - 66.90 million VND/tael

SJC HCMC: 66.35 million VND/tael - 67.15 million VND/tael

Doji HCMC: 66.10 million VND/tael - 66.90 million VND/tael

International gold price

On the night of December 6 (Vietnam time), the world spot gold price stood at around 1,777 USD/ounce. Gold for February delivery on the Comex New York floor was at 1,786 USD/ounce.

The world gold price on the night of December 6 was about 2.4% lower (44 USD/ounce) compared to the beginning of 2022. World gold converted according to the bank USD price was 53.8 million VND/tael, excluding taxes and fees, about 13.3 million VND/tael lower than the domestic gold price as of the end of the afternoon session on December 6.

Gold prices on the international market increased sharply again after being under selling pressure in the first session of the week. The USD decreased.

Gold is still in an uptrend according to technical analysis.

World gold prices increased sharply again after falling in the first session of the week. (Photo: Hoang Ha)

Gold prices rose again as investors expected demand for the commodity to increase as the world's top gold consumer, China, loosened its Covid-19 prevention policies.

However, the pressure on gold remains as the USD is still rising after the US announced many figures, including the service sector, showing that the US economy is quite solid. This makes many people worry that the US Federal Reserve (Fed) may continue to raise interest rates at a strong level as in previous times.

Previously, the market bet on the possibility that the Fed would only raise interest rates by 50 basis points, lower than the 75 basis points increase at the previous meeting.

Gold price forecast

However, the latest signals show that the Fed will still only raise interest rates by 50 basis points at the upcoming meeting.

The US Central Bank will also soon reverse monetary policy to support the economy, avoiding the risk of falling into recession.

The USD is therefore unlikely to increase sharply.

This is a strong support factor for gold.

Geopolitical instability around the world has also caused many central banks to rush to buy gold again.

According to The Economist, in the third quarter of 2022 alone, central banks of countries bought hundreds of tons of gold, bringing the total gold reserves in the first 9 months of the year to 670 tons.