Gold price in the market Asia recovered somewhat in the first session of the week 6/2, but USD stronger and concerns that the US Federal Reserve (Fed) may continue to raise interest rates have led to gold price remained below the important level of 1,900 USD/ounce.
Specifically, spot gold prices rose 0.4 percent to $1,872.96 an ounce, after hitting the lowest level since January 6 at the start of the session. U.S. gold futures rose 0.5% to $1,886 an ounce.
Gold prices fell about 2.5 percent late last week, after data showed U.S. job growth accelerated last month and the unemployment rate hit a 53-year low of 3.4 percent.
OCBC FX Strategist Christopher Wong said: “Markets initially expected a cut interest rate the first would take place in the third quarter of 2023, but expectations for the first cut have now been pushed back to November-December 2023.”
[Giá vàng châu Á tăng nhẹ trong phiên giao dịch chiều 30/1]
Markets are now expecting the Fed to keep interest rates on top (still around 5%) for a longer period of time. This may reduce the attractiveness of gold in the short term.
Rising interest rates in the U.S. tend to reduce gold’s appeal because they increase the opportunity cost of holding non-yielding capital assets.
Also this morning, spot silver was up 0.2 percent to $22.39 an ounce, platinum was seemingly unchanged at $973.88 an ounce and palladium was up 0.2 percent to $1,626. 38 USD/ounce.
In Vietnam, on the morning of February 6, the price of gold SJC in Hanoi market was listed by Saigon Jewelry Company at 66.5 million dong-67.32 million dong/tael (buy in-sell), up 100 thousand dong/tael in buying afternoon. , but decreased by 100 thousand dong/tael in the selling afternoon compared to yesterday’s closing.
Minh Trang (VNA/Vietnam+)