Gold prices will fluctuate strongly when Trump takes office
Updated
Gold prices fluctuated violently today when the USD Index reached 109.35 points, helping the value of the USD increase to its highest level in the past 2 years.
On the other hand, bond interest rates also increased to nearly 4.8%, which encouraged many people to invest in this investment channel. Since then, very little money has flowed into the gold market. Today's gold price has taken on additional disadvantages.
Under pressure from the USD and US bonds, speculators may think that holding gold is disadvantageous. Therefore, many people have sold gold to take profits. Today's gold price has naturally "evaporated" tens of USD/ounce.
Analysts say the international gold market is fluctuating unpredictably due to investors' concerns about financial stability, before Mr. Donald Trump returns to the White House on January 20.
On the other hand, bond interest rates also increased to nearly 4.8%, which encouraged many people to invest in this investment channel. Since then, very little money has flowed into the gold market. Today's gold price has taken on additional disadvantages.
Under pressure from the USD and US bonds, speculators may think that holding gold is disadvantageous. Therefore, many people have sold gold to take profits. Today's gold price has naturally "evaporated" tens of USD/ounce.
Analysts say the international gold market is fluctuating unpredictably due to investors' concerns about financial stability, before Mr. Donald Trump returns to the White House on January 20.
Trade active
Despite reacting rather late, the gold market is under pressure from the optimistic US jobs report released on Friday (10.1). The report shows that the US economy is recovering well and is in line with the US Federal Reserve's (FED) cautious policy easing stance; especially when US President-elect Donald Trump pledged to increase tariffs on imports, which could increase inflation.
The market is focusing on the US's monthly inflation data released later this week, as well as speeches by several FED officials to predict the trend of gold prices in the coming time.
Trade closed: target reached
The world gold price on the night of January 14 was about 29.3% higher (605 USD/ounce) than at the beginning of 2024. The world gold price converted to the bank USD price was VND 82.9 million/tael, including taxes and fees, about VND 3.5 million/tael lower than the domestic gold price as of the end of the afternoon session on January 14.
The world gold price increased again after a sharp decrease in the previous 2 sessions, from a 1-month peak of 2,700 USD/ounce to 2,655 USD/ounce. Bottom-fishing demand along with the cooling USD helped the gold price recover.
Note
Earlier, the USD hit a two-year high, with the DXY index surging above 110. By the evening of January 14, the DXY had fallen to 109.6.
The greenback hit a two-year high on January 11 amid a strong US jobs report. Investors expect the Federal Reserve (Fed) to remain cautious in cutting interest rates this year.
Note
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