The world gold price for direct delivery at 02:33 (New York time), or 14:33 on November 10, Vietnam time, increased by 1.91%, equivalent to an increase of 76.23 USD, reaching 4,077.44 USD/ounce. This is the highest level since October 27.
Meanwhile, US December gold futures also increased similarly to $4,079.70/ounce.
According to Mr. Tim Waterer, chief market analyst at KCM Trade, gold is receiving strong buying momentum at the beginning of the week, as investors bet the US Federal Reserve (Fed) could still cut interest rates next month, although the agency has recently tried to reduce expectations for that possibility.
The US labor market continues to signal a slowdown, the number of jobs cut in October increased sharply due to businesses tightening costs and promoting the application of artificial intelligence (AI). The government and retail sectors both recorded a high number of unemployed workers.
However, US consumer confidence in November fell to its lowest level in nearly 3 and a half years, amid a federal government shutdown that lasted up to 40 days, delayed administrative operations, delayed food aid packages and caused chaos in aviation.
According to the CME FedWatch tool, the market now sees a 67% chance of a Fed rate cut in December. Gold - a non-yielding asset - often benefits when interest rates are low and the economy shows signs of instability.
On the evening of November 9, US time (morning of November 10, Vietnam time), the US Senate approved the first phase of the agreement to end the US government shutdown. The deal, reached after weekend talks, will provide the US government with funding through January 2026. The deal must be approved by the US House of Representatives and signed into law by President Donald Trump before ending the government shutdown.
If the government returns to work, we will have more clear economic data something that has been lacking for a long time, Waterer said.
According to SPDR Gold Trust - the world's largest gold ETF - gold holdings increased by 0.16%, to 1,042.06 tons last weekend. This is a sign that investors are looking for gold as a "safe haven" during the period of instability.
Not only gold, spot silver prices also increased by 2.5% to 49.52 USD/ounce, platinum increased by 1.3% to 1,565.22 USD/ounce, and palladium increased by 1.1% to 1,396.37 USD/ounce.
Experts say that if the Fed does indeed cut interest rates in December, gold's rally could continue to break out, especially with concerns about economic recession and US public debt - currently at $37 trillion - still being a dark cloud covering the global market.
Regarding domestic gold prices, as of 1:45 p.m. on November 10, SJC gold bar prices were trading around 148.7 - 150.2 million VND/tael (buy - sell).
The price of 9999 Bao Tin Minh Chau gold rings is trading around 147.5 - 150.5 million VND/tael (buy - sell).
