As the US trading hours transitioned, gold prices quickly escaped the session’s bottom and regained their upward trend…
Illustration photo – Photo: Bloomberg.
Spot gold prices fluctuated sharply in the trading session on Tuesday (September 30) before closing at a new record, in the context of a possible US government shutdown and a jobs report that reinforced the possibility of the Federal Reserve (Fed) continuing to cut interest rates. “Shark” SPDR Gold Trust net bought gold in this session.
At 6:00 a.m. this morning (October 1) Vietnam time, the spot gold price in the Asian market increased by 2.5 USD/oz compared to the closing price of the US session, equivalent to an increase of 0.06%, trading at 3,862.2 USD/oz – according to data from the Kitco exchange. Converted according to the USD selling rate at Vietcombank, this price is equivalent to nearly 123.1 million VND/tael, an increase of about 1.1 million VND/tael compared to yesterday morning.
At the same time, Vietcombank website quoted USD prices at 26,176 VND (buy) and 26,446 VND (sell), down 5 VND at each end of the price compared to early yesterday morning.
At the end of last night’s session in New York, spot gold price reached 3,859.7 USD/oz, up 25 USD/oz compared to the previous session’s close, equivalent to an increase of 0.65%.
On the COMEX floor, gold price for December delivery increased 0.5%, closing at 3,873.2 USD/oz.
Previously, the gold price fluctuated violently during trading hours in the Asian market, at times setting a record above the threshold of 3,870 USD/oz, at times falling below 3,800 USD/oz, equivalent to an amplitude of fluctuation of more than 70 USD/oz. When transitioning to trading hours in the US, the gold price quickly escaped the session’s bottom and regained the upward trend.
In September, spot gold prices increased by about $420/oz, equivalent to an increase of about 12.2%, climbing steadily from the region of more than $3,400/oz to more than $3,800/oz. In the third quarter, spot gold prices increased by nearly 17%.
A September 30 report from the US Department of Labor showed that the number of job openings in the US economy increased slightly, while the number of jobs filled decreased slightly. These figures are consistent with recent employment data trends that reflect a weakening US labor market, strengthening the possibility of the Fed cutting interest rates twice more this year, at its October and December meetings.
“Gold prices have shown resilience again, rebounding from the session lows after the unsurprising jobs data suggested the Fed will have no problem cutting rates this month,” independent precious metals trader Tai Wong told Reuters. In the interest rate futures market, traders are pricing in a 97% chance of a 25 basis point rate cut at the Fed’s meeting later this month, according to data from the CME FedWatch Tool.
The looming US government shutdown is also adding to uncertainty, reinforcing the case for buying gold, Mr. Wong added.
World gold price movements over the past year. Unit: USD/oz – Source: Trading Economics.- Nguồn: Trading Economics.
In Washington, the two parties in the US Congress, Republicans and Democrats, have not yet agreed on a temporary budget bill to maintain the Government’s operations. If no agreement is reached before October 1, the US Government will fall into a state of partial shutdown.
“Any prolonged government shutdown could have a negative impact on the US economy, prompting the Fed to lower interest rates, which would benefit gold prices,” said TD Securities strategist Bart Melek.
The US dollar fell slightly in the session on Tuesday, with the Dollar Index closing at 97.91 points. In early trading in Asia this morning, the index fell more than 0.1%, trading below 97.8 points.
The greenback fell nearly 0.4% in September, but gained more than 1% in the third quarter, despite falling nearly 10% year-to-date, according to data from MarketWatch.
The world’s largest gold ETF added 1.2 tonnes of gold to its holdings on Tuesday, bringing its holdings to 1,012.9 tonnes, according to data from its website. It had bought about 7 tonnes of gold in the first two sessions of the week.
Analysts had predicted that gold prices this week could be influenced by the non-farm payrolls report that the US Labor Department is scheduled to release on Friday. However, on Monday, the US Labor Department said it may have to postpone the release of this monthly report indefinitely if the US government shuts down.
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