Looking back at gold prices last week
After months of speculation about when the US Federal Reserve (FED) would officially begin its easing cycle, with predictions of a 25 or 50 basis point cut, the Fed officially cut interest rates last week. The FED's cut did not disappoint the market.
Spot gold started the week near a record high of $2,570 an ounce, with resistance around $2,588 an ounce. It fell to a weekly low of $2,563 an ounce on Tuesday morning, but rebounded to $2,575 an ounce by late afternoon.
Since then, gold prices have been moving sideways, waiting for the Fed's final decision on whether it will cut 25 basis points, or a sharp cut of 50 basis points?
The next day, the market was extremely excited when the Fed decided to take drastic action, cutting rates by 50 basis points. Spot gold prices immediately skyrocketed to a new record high of over $2,594/ounce.
As usual when gold prices suddenly rise, profit-taking took place in the market. Gold prices quickly fell to a low of $2,549/ounce.
But Wednesday evening (US time) saw the precious metal bounce strongly, reaching $2,590/ounce. After a few sessions of not too much volatility, gold prices finally surpassed the $2,600/ounce mark on Friday morning.
Spot gold prices surged, with spot gold hitting a new all-time high of $2,625.79 an ounce on Friday. At the time of writing, spot gold listed on Kitco was still holding above $2,621 an ounce.
Gold price receives positive forecast
The latest Kitco News weekly gold survey shows investors are bullish on gold prices next week, while industry experts are evenly split between bullish and bearish views in the short term.
This week, 19 analysts participated in the Kitco News gold survey, and the majority see gold prices rising or at least trading sideways. Nine analysts see gold prices rising next week, while eight see it trading sideways. Only two see gold trading lower next week.
Meanwhile, 189 votes were cast in Kitco's online poll, with most Main Street investors returning to their optimistic outlook.
129 retail traders expect gold prices to rise next week, while 29 see gold trading lower. The remaining 31 respondents expect prices to trade sideways next week.
While there isn't as much economic data as last week, next week's economic calendar still has a slew of important data releases, including S&P Flash PMI on Monday, US consumer confidence on Tuesday, US new home sales on Wednesday and US durable goods report on Thursday, Q3 GDP and weekly jobless claims and US pending home sales.
The main event next week that could have a big impact on gold prices is the release of the US core personal consumption expenditure (PCE) index for August, the Fed’s preferred inflation gauge, due Friday morning.
Gold price update
Currently, the price of SJC gold bars is listed by DOJI Group at 80 - 82 million VND/tael (buy - sell). The difference between the buying and selling price of SJC gold at DOJI Group is 2 million VND/tael.
The price of 9999 Hung Thinh Vuong round gold ring at DOJI is listed at 79.4-80.55 million VND/tael (buy - sell); an increase of 800,000 VND/tael for buying and an increase of 850,000 VND/tael for selling.
Meanwhile, Bao Tin Minh Chau listed the price of SJC gold at 80 - 82 million VND/tael (buy - sell). The difference between the buying and selling price of SJC gold at Saigon SJC Jewelry Company is at 2 million VND/tael.
Bao Tin Minh Chau also adjusted the price of plain round gold rings to increase to 79.39-80.54 million VND/tael (buy - sell), an increase of 810,000 VND/tael for buying and 860,000 VND/tael for selling compared to yesterday morning.
