Explaining why gold prices remained stable at the beginning of the week
Domestic and world gold prices on November 17 remained almost unchanged after the sell-off last weekend: The market is waiting for US economic data, experts predict the 5,000 USD mark.
Domestic and international gold prices were almost unchanged on Monday, November 17, after a sell-off last weekend, as the market awaited important economic data from the US. This stability came after gold prices fell more than 2% in the previous session due to expectations of a sharp decrease in interest rate cuts.
Specifically, spot gold price remained at 4,072.9 USD/ounce. US gold futures contract for December delivery decreased slightly by 0.3% to 4,080.1 USD/ounce.
Domestically, gold bar prices at major companies SJC, DOJI, PNJ, Mi Hong, Ngoc Tham, BTMC, Bao Tin Manh Hai, and Phu Quy all maintained the selling price of 150 million VND/tael, unchanged from the end of last week.
According to analysts, gold prices have been stable thanks to the balance between two opposing forces. On the one hand, the downward pressure comes from the stronger US dollar and fading expectations of interest rate cuts from the Fed. On the other hand, many investors continue to buy gold as a tool to protect assets against market instability after last week's decline, thereby supporting prices from falling further.
The US dollar continued to rise for a second consecutive session, making gold more expensive for investors using other currencies.
This week, markets will focus on a series of US economic data for signs of economic strength, most notably the postponed September non-farm payrolls report due on Thursday.
Fed policymakers have recently struck a cautious tone, dropping the probability of a rate cut in December below 50%.
CME's FedWatch tool shows traders now see just a 45% chance of a 0.25% rate cut in December, down from more than 62% last week. Gold, a non-yielding asset, typically benefits in a low-interest-rate environment.
Gold prices have risen 56% year-to-date and hit a record high of $4,381.21 on October 20. The rally has been fueled by a number of factors including economic and geopolitical concerns, strong inflows into gold ETFs, and expectations of further interest rate cuts.
Some analysts believe that the uptrend still has room to continue as the fundamental conditions supporting gold have not changed, and they predict that gold prices could hit $5,000 by 2026.
Besides gold prices, silver prices increased 0.9% to 51.02 USD/ounce, platinum increased 0.4% to 1,547.80 USD, and palladium increased slightly 0.1% to 1,385.75 USD.
