Although gold bounced off recent lows, the precious metal ended the week with losses. Some experts believe that if gold successfully tests the $2,000 mark, any major decline in gold prices will be an attractive buying point for investors.
Gold price today January 21: World gold ended the week with losses
The hawkish change in US monetary policy has caused gold prices to fall to their lowest level in 5 weeks, just above 2,000 USD/ounce. Although gold bounced off recent lows, the precious metal ended the week with losses. February gold futures last traded at $2,030/ounce, down 1% from last Friday.
Analysts do not expect gold prices to break out of this downtrend anytime soon as economic data provides little guidance on US monetary policy.
James Stanley, senior market strategist at Forex.com, said he expects higher volatility in the gold market as prices stabilize and test support around $2,000 an ounce. However, he noted that any major decline in gold would be a buying opportunity for investors.
Some analysts note that gold investors will need to keep a close eye on the US dollar as the greenback continues to impact the price action of the precious metal.
Next week might see some volatility for the US dollar with the monetary policy decisions of the three major central banks being made.
The Bank of Japan will be the first to decide and is expected to maintain its dovish stance and negative interest rates. The Bank of Canada is next and with December’s unexpected rise in inflation, the central bank will have to take a more difficult path.
Thursday, the European Central Bank ends the week and brings the highest risk to the US dollar and gold.
Last week, ECB members protested once morest an early interest rate cut at the World Economic Forum in Davos, Switzerland. Some analysts note that the ECB’s hawkish policies might put pressure on the US dollar and support gold prices in the near term.
Another risk to the US dollar will come from domestic data, as investors pay close attention to inflation data released on Friday.
Commodities analysts at TD Securities said they expect strong demand from Chinese companies preparing for Lunar New Year celebrations to continue supporting gold prices.
Economic data released next week:
Second: Monetary policy decision of the Bank of Japan
Wednesday: Flash PMI data, Bank of Canada monetary policy decision
Thursday: European Central Bank monetary policy decision, US Q4 GDP growth, Durable goods sales, new home sales
Friday: Core PCE, personal income and spending
Gold price today January 21: Domestic gold decreased slightly
This morning’s domestic SJC gold price was adjusted slightly down with the highest decrease on the selling side being 150,000 VND/tael. Currently, the prices of gold bars for brands are listed specifically as follows:
SJC gold price in Hanoi and Da Nang area is listed at 73.7 million VND/tael purchased and 76.72 million VND/tael sold. In Ho Chi Minh City, SJC gold is still buying at the same level as in Hanoi and Da Nang areas but selling is 20,000 VND lower. Thus, compared to yesterday morning, SJC gold price was adjusted down by 600,000 VND on the buying side and 100,000 VND on the selling side.
SJC gold bars are being purchased by Phu Quy at the price of 73.85 million VND/tael and sold at 76.55 million VND/tael, down 450,000 VND on the buying side and 150,000 VND on the selling side compared to yesterday morning. PNJ brand gold bar price is anchored at 74.3 million VND/tael purchased and 76.9 million VND/tael sold.
Meanwhile, Bao Tin Minh Chau adjusted the buying price by 400,000 VND and the selling price by 150,000 VND to 73.9 million VND/tael and 76.55 million VND/tael, respectively.
The difference between domestic and world gold prices is regarding over 16 million VND/tael.
Domestic SJC gold price developments. Source: giavang.org
Unit: x1000 VND/tael
