Gold price gains maintained despite strong USD recovery for second consecutive day…
Gold prices rose above $4,000 an ounce for the first time in history on Tuesday, as the global precious metal continued to be supported by expectations of lower interest rates and demand for safe-haven assets. However, the high prices may be making some investors more cautious about buying.
At the close, gold futures on the COMEX division of the New York Mercantile Exchange rose 0.7% to $4,004.40 an ounce. During the session, gold futures hit an all-time high of $4,016.60 an ounce.
Spot gold price in the New York market closed at 3,985.6 USD/oz, up 23.4 USD/oz compared to the previous session’s closing price, equivalent to an increase of 0.6% – according to data from Kitco exchange.
The upward trend continued as the gold market started a new trading day in Asia early this morning (October 8). At 6:05 am Vietnam time, the spot gold price in Asia increased by 6.5 USD/oz compared to the closing price of the US session, equivalent to an increase of 0.16%, trading at 3,992.1 USD/oz. Previously, the spot gold price reached a new record at 3,993 USD/oz.
Converted according to the USD selling rate at Vietcombank, this price is equivalent to about 127 million VND/tael, an increase of 900,000 VND/tael compared to yesterday morning. Since the beginning of the week, the converted spot gold price has increased by 3 million VND/tael.
At the same time, Vietcombank website quoted USD prices at 26,148 VND (buy) and 26,398 VND (sell), down 5 VND at each end of the price compared to yesterday morning.
“The demand for risk protection is high because the US government is still closed and there is no sign that this problem will be resolved quickly. Therefore, investors are buying a lot of gold,” Peter Grant, strategist at Zaner Metals, told Reuters.
In addition to the new catalyst from the US government shutdown, the 51% increase in gold prices since the beginning of the year is also the result of many other medium- and long-term supporting factors, including expectations of the US Federal Reserve (Fed) to lower interest rates, the trend of net gold purchases by central banks, geopolitical and economic instability, a prolonged weakening of the US dollar, and ETFs returning to buying gold.
The U.S. government has been shut down for nearly a week now, and one of the consequences of this stalemate is that a series of key economic reports, such as jobs data, have been delayed. Still, investors are betting that the Fed will almost certainly cut interest rates two more times this year, at its October and December meetings.
Global currency and bond markets continued to be volatile in this session as investors worried about recent political developments in France and Japan. In France, President Emmanuel Macron is facing great pressure after the sudden resignation of Prime Minister Sebastien Lecornu. In Japan, Sanae Takaichi – a politician with strong fiscal and monetary easing policies – is facing the opportunity to become Prime Minister.
Faced with such concerns, investors sold the euro, the Japanese yen, French and Japanese government bonds, and tended to increase holdings of safe assets such as gold.
World gold price movements over the past year. Unit: USD/oz – Source: Trading Economics
Gold prices continued to rise despite the strong recovery of the US dollar for the second consecutive day. The Dollar Index increased 0.5% to close at 98.57 points.
New data released by the People’s Bank of China (PBOC) showed that the agency net bought gold for the 11th consecutive month last September, confirming the trend of diversifying foreign exchange reserves away from the US dollar by central banks around the world.
The world’s largest gold ETF, SPDR Gold Trust, did not buy or sell net in the session on Tuesday, keeping its holdings at more than 1,013.1 tonnes of gold. The temporary halt in net buying by this “shark” may reflect cautious sentiment at record prices.
A Goldman Sachs report released on Monday raised its gold price forecast for the end of December 2026 to $4,900 an ounce, up from $4,300 an ounce previously. Analysts at the US bank noted that gold prices continue to benefit from net buying by ETFs in Western markets and central banks.
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