Gold prices in Asia fell in the session on January 18 amid a stronger dollar, despite speculation that the US Federal Reserve (Fed) would slow down. interest rate increase help limit the decline of gold somewhat.
On the afternoon of January 18, spot gold fell 0.3% to $1,902.59 an ounce, after hitting a session low of $1,896.32 an ounce. The price of this precious metal climbed to a nearly nine-month high on January 16. US gold futures fell 0.3% to $1,903.90 an ounce.
Index USD rose 0.3%, amid a decline in the yen after the Bank of Japan (BoJ) kept yield-curve controls in place, and this reduced the attractiveness of the gold-denominated precious metal. price in this greenback.
Hareesh V, head of commodities research at Geojit Financial Services in Kochi, India, gold is under pressure as the dollar is recovering. Concerns about economic depression and Fed policy decision will be the main catalyst for prices in the near future.
Investors are waiting for data on the US producer price index and retail sales to be released later in the day.
Marex metals analyst Edward Meir said the market is focused on economic data. If this data shows that inflation is cooling and interest rates will fall, then gold will rise.
The Fed raised rates by 75 basis points four times in 2022, before falling to a 50 basis point increase in December 2022. Traders mostly expect the Fed to raise rates by 25 basis points at its next policy meeting.
[Giá vàng thế giới rời khỏi mức đỉnh tám tháng trong phiên 17/1]
Lower interest rates tend to benefit bullion, reducing the opportunity cost of holding non-yielding assets.
Richmond Fed President Tom Barkin said the end of the rate hike would depend on how inflation evolves.
Analyst Meir added that if the Chinese economy recovers, that will be positive news for gold as jewelry demand will increase.
On January 17, officials at the World Economic Forum said the reopening of China, the top consumer of bullion, could boost global growth beyond expectations.
In other precious metals, spot silver rose 0.4 percent to $24.02 an ounce, platinum lost 0.7 percent to $1,031.88 an ounce, and palladium fell 0.6 percent. 1,733.13 USD/ounce.
Gold price SJC in Hanoi market is listed by Saigon Jewelry Company at 66.8 – 67.62 million VND/tael (buy in – sell out).
Minh Hang (VNA/Vietnam+)