Gold prices fluctuate as soon as opening
The world gold market started a new trading week with notable ups and downs.
Immediately after opening, gold prices at one point fell to about 4,439 USD/ounce, then quickly recovered to the 4,471 USD/ounce zone. Thus, in a short time, the fluctuation range of the precious metal has exceeded 30 USD/ounce.
The recovery momentum did not last long. At 8:00 AM on August 31st (Vietnam time), the world gold price was listed around 4,445.9 USD/ounce, significantly lower than the price range that had just recovered before.
The rapid up and down diễn biến right at the beginning of the week shows that market sentiment is quite sensitive after the deep decline last weekend. Investors must also reassess the outlook for monetary policy after the tough message from US Federal Reserve (Fed) Chairman Kevin Warsh at the Jackson Hole conference.
Mr. Warsh continued to emphasize the goal of controlling inflation and bringing the price increase back to the 2% target. This makes the possibility of the Fed maintaining tight monetary policy, even continuing to raise interest rates, one of the major risks for gold in the short term.
US job data may decide gold's direction
This week, the gold market will monitor a series of important US economic data. On September 1, the US announced the ISM manufacturing PMI and the JOLTS job opportunity report. September 2 is the ADP private sector jobs report, along with interest rate decisions from the Bank of Canada and the Reserve Bank of New Zealand.
On September 3, the market welcomed the number of jobless claims and the ISM service PMI. The focus is the US August non-farm payroll report released on September 4.
If the labor market weakens, expectations of the Fed raising interest rates may decrease, pulling the USD and bond yields down, thereby supporting gold. Conversely, positive job data may put pressure on gold to continue.
Besides economic data, the diễn biến of the USD and US bond yields also need to be closely monitored. USD and yields increase due to expectations that the Fed will maintain tight monetary policy, which is often detrimental to gold.
In addition, profit-taking pressure is still present after a period of strong price increases. The fact that gold fluctuated more than 30 USD/ounce right after the opening of the new week shows that the market may continue to experience strong ups and downs in the short term.
Domestic investors need to be cautious
In the context of world gold continuously reversing direction and many important economic data being released this week, domestic investors need to cautiously monitor market developments, especially US jobs data, USD, bond yields and Fed interest rate expectations.
Besides the risk from price fluctuations, the difference between buying and selling prices in the domestic gold market is still high, causing buyers to suffer significant losses immediately after trading. If world gold prices continue to adjust, this difference will further increase the risk for buyers in high price zones.
Investors need to avoid FOMO psychology when prices increase rapidly, limit chasing purchases, do not use leverage and carefully consider risk-tolerance before making a trading decision.
The article only updates market developments, not investment recommendations. The gold market is volatile, investors need to be cautious and consider carefully before making a decision.
