World gold price dropped nearly 2% in the 2/2 session, when the USD rose once more and some investors took profits following Gold price peaked 9 months due to dovish comments on interest rate policy from US Federal Reserve Chairman Jerome Powell.
Specifically, spot gold fell 1.8 percent to $1,915.79 an ounce, following hitting its highest level since April 2022 in the previous session.
U.S. gold futures also fell 0.6 percent to $1,930.8 an ounce.
The dollar index rose nearly 1% once morest major currencies, making dollar-denominated gold less attractive to buyers holding other currencies.
[Giá vàng tại thị trường châu Á lên mức cao nhất kể từ tháng 4/2022]
David Meger, director of metals trading at financial services firm High Ridge Futures (US), said that while fundamentals for the gold market remain strong, there is a slight decline in the market. possibly due to some profit-taking ahead of the US monthly jobs data due on February 3.
On February 1 (local time), the Fed decided to raise the basic interest rate by 0.25 percentage points, to a range of 4.5-4.75%, the highest level since October 2007, and There is little sign that the Fed is nearing an end to the tightening cycle monetary policy Currently.
Mr. Powell warned of further tightening of monetary policy as inflation remains too high, but noted that progress in reducing inflation is in the early stages.
“The Fed chair is not nearly as hawkish as he has been in recent press conferences and is open to the possibility that the Fed will,” said Jim Wyckoff, senior analyst at precious metals trading site Kitco Metals. “pivot” sooner or later.”
Gold tends to rise in value on expectations of lower interest rates, which reduces the opportunity cost of holding gold that is inherently unprofitable.
The latest data showed the number of Americans filing first-time jobless claims fell to a nine-month low last week as the labor market remained resilient despite higher interest rates.
The focus now shifts to the January 2023 US nonfarm payrolls report.
Meanwhile, both the Bank of England and the European Central Bank raised interest rates by 50 basis points on February 2.
On the same day, spot silver fell 1.8 percent to $23.55 an ounce. Platinum rose 1.8% to $1,021.98 an ounce, while palladium fell 1% to $1,652.64 an ounce.
In Vietnam, in the early morning of February 3, the price of SJC gold in Hanoi market was listed by Saigon Jewelry Company at 67-67.82 million VND/tael (buy-in-sell). /.
Minh Trang (VNA/Vietnam+)
