Kallanish Index Services’ Post

Gold Prices Soar to New Heights: Global Markets React to Middle East Turmoil, While Domestic Prices Creep Up. Gold prices surged to a new all-time high during Monday’s Asian trading session (May 20), propelled by mounting expectations of a Federal Reserve rate cut and escalating geopolitical tensions in the Middle East. Domestic gold prices followed suit, albeit at a slower pace, with selling prices of gold bars and rings increasing by 100,000–300,000 VND per tael compared to the previous week. As of nearly 10:00 a.m. Vietnam time, the spot gold price in the Asian market rose by $14.3/oz compared to Friday’s close in the US, equivalent to a 0.6% increase, reaching $2,429.7/oz, according to data from Kitco Exchange. Earlier, gold prices touched $2,440.5/oz, breaking the previous record of around $2,430/oz set in April. At the current rate, the world gold price is equivalent to about VND 74.5 million per tael if converted according to Vietcombank’s selling exchange rate, up VND 500,000 per tael from the previous week. At the same time, the SJC gold bar price in Hanoi, listed by Phu Quy Group, was VND 88.4 million/tael and VND 90.4 million/tael, respectively, for buying and selling, up VND 600,000/tael and VND 300,000/tael compared to Saturday morning. Phu Quy’s plain rings were priced at VND 76.1 million/tael (buying) and VND 77.6 million/tael (selling), up VND 200,000/tael and VND 100,000/tael, respectively. The Rong Thang Long rings, offered by Bao Tin Minh Chau Jewelry Company, were quoted at VND 76.13 million/tael and VND 77.63 million/tael. In Ho Chi Minh City, SJC Company quoted SJC gold bars at VND 88.6 million/tael and VND 90.6 million/tael, up VND 900,000/tael and VND 200,000/tael, respectively, from the previous week. The SJC ring was priced at VND 75.7 million/tael for buying and VND 77.4–77.5 million/tael for selling, depending on the weight of the product. Gold prices rallied as traders increasingly bet on the Fed initiating a rate cut as soon as September this year—a scenario that bodes well for non-interest-bearing assets like gold. Moreover, such a rate environment also bodes ill for the US dollar, and since gold is priced in dollars, a weaker greenback means a potential boost for the precious metal. Last week, both the US dollar index and US Treasury bond yields fell, propelling gold prices 2% higher, after inflation data showed that the US Consumer Price Index (CPI) for April rose less than expected. According to Bloomberg, gold’s safe-haven appeal is growing after a helicopter carrying Iranian President Ebrahim Raisi crashed in foggy weather on Sunday. This incident heightened anxiety about geopolitical risks in the Middle East, following an attack on an oil tanker by Houthi rebels in the Red Sea on Saturday. “This gold price rally is being driven by the uncertainty surrounding Iran,” said Nicholas Frappell, a Sydney-based analyst at ABC Refinery. According to data from the US Commodity Futures Trading Com...

World gold price falls, domestic price increases by 300,000 dong/tael. The global gold price started the new trading week with a slight decline, but the domestic gold price this morning increased by VND 300,000 per tael compared to the end of the week, reaching VND 79 million per tael in some places. Experts believe that the world gold price is still under short-term downward pressure, but the “door” for long-term increase is still wide open as the Federal Reserve will have to start a monetary policy easing cycle. At nearly 10 am, the Phu Quy Group listed the SJC gold price for the Hanoi market at VND 76.8 million per tael (buying) and VND 78.8 million per tael (selling). Compared to Saturday morning, the SJC gold price at this company has increased by VND 300,000 per tael. The Phu Quy brand pure 999.9 gold ring is priced at VND 64.45 million per tael and VND 65.55 million per tael, respectively for buying and selling, up VND 50,000 per tael at each end of the price. In Ho Chi Minh City market, the SJC Gold Company quoted the SJC gold price for buying and selling at VND 76.8 million and VND 79 million per tael, respectively, increasing by VND 300,000 per tael at each end of the price compared to Saturday morning. At the same time, the spot gold price in the Asian market decreased by $4.8 per ounce compared to the end of the previous week in New York, equivalent to a decrease of more than 0.2%, to $2,031.5 per ounce – according to data from the Kitco exchange. This price level is equivalent to about VND 60.7 million per tael if converted according to the selling exchange rate of USD at Vietcombank, a decrease of VND 100,000 per tael compared to the end of the week. Compared to the converted world gold price, the retail SJC gold price is currently higher by VND 18.1-18.3 million per tael. This morning, Vietcombank quoted USD at VND 24,450 (buying) and VND 24,820 (selling), an increase of VND 20 at each end of the price compared to the end of the week. Last week, the world gold price increased by 1.4% thanks to the decrease in the value of the USD and the demand for risk hedging due to geopolitical tensions in the Middle East. However, this precious metal – a non-interest-bearing asset – is facing downward pressure due to the possibility of the Federal Reserve keeping interest rates higher for longer. Recent data shows that the US economy is growing steadily and inflation is decreasing slower than expected. This fact has led the financial market to no longer bet on the possibility of the Fed cutting interest rates from March, but instead believing that the central bank will start cutting interest rates in June. The market’s forecast for the number of times the Fed will cut interest rates this year has also decreased to 4 times instead of 6 times as at the beginning of the year. In addition, the recent upward trend of the US stock market does not benefit the gold price, as investors are more attracted to the continuous setting...

In a recent major market development, the price of gold in Pakistan has decreased significantly. According to local jewelers, the price per tola dropped by Rs2,300, bringing the new rate to Rs283,100 per tola. Similarly, the price for gold per 10 grams has seen a reduction of Rs1,971, now standing at Rs242,713. The decline in domestic gold prices coincides with a drop in the international bullion market, where the price of gold fell by $23 per ounce, resulting in a new global price of $2,734. Market analysts attribute these fluctuations to a combination of local economic factors and international market trends. As gold prices continue to fluctuate, both buyers and sellers are advised to keep a close watch on market conditions.

India’s gold market update: investment demand and central bank purchases soften the slump in jewelery purchasing. Highlights:  - Global and domestic gold prices stay elevated, y-t-d gains at 16%1 - Jewellery demand subdued; investment demand dominant - Significant widening of discounts between domestic and international gold prices - The Reserve Bank of India (RBI) grows its gold reserves with its highest monthly purchase in nearly two years in June - Gold ETFs inflows sustain momentum in June - Steady trend in gold imports. https://lnkd.in/gkKkZr-q

The Golden Opportunity: Navigating the Surging Tides of Gold and USD https://ift.tt/1bi8dlj Gold Surges Amid Supply-Demand Imbalance Phu Quy Gold and Silver Company listed gold ring prices at VND 87.9 – 89 million per tael for buyers and sellers. Doji Group listed gold ring prices at VND 88 – 89 million per tael for buyers and sellers. Bao Tin Minh Chau Company listed gold ring prices at VND 87.48 – 88.98 million per tael. Saigon Jewelry Company (SJC) listed gold ring prices at VND 87 – 88.5 million per tael for buyers and sellers, an increase of VND 300,000 per tael compared to yesterday. SJC gold bar prices were listed by state-owned banks (Vietcombank, Vietinbank, BIDV, Agribank) at VND 89 million per tael. Enterprises listed SJC gold bar prices at VND 87 – 89 million per tael for buyers and sellers. SJC gold bars have seen a significant increase in the past four months. At the same time, world gold prices were listed at $2,747 per ounce, an increase of $13 per ounce compared to yesterday. World gold prices are equivalent to VND 83 million per tael. According to experts, domestic gold prices have surged in the past two weeks following world prices and the year-end gold demand. These days, at many shops, people find it difficult to buy gold rings as the sellers are always out of stock. Meanwhile, it has been difficult to place online orders for SJC gold bars for many months now. Dr. Can Van Luc, Chief Economist at BIDV, stated that the high gold prices are due to supply and demand. Accordingly, allowing a number of enterprises that meet the criteria to import gold will help balance supply and demand and bring down prices. USD Self-employed Rates Rise, Banks Hit Ceiling In the monetary market, the State Bank of Vietnam listed the central exchange rate at VND 24,255 per USD, down VND 5 from the previous day. At commercial banks, the exchange rate was at VND 25,197 – 25,467 per USD for buyers and sellers. Foreign exchange trading spots on the black market bought USD at VND 25,700 per USD and sold at VND 25,800 per USD. In reality, the exchange rate has been stirring up a new cycle of increases since the end of September. However, it was not until mid-October that the rate really started to “soar”. Since the beginning of October, the USD bank rate has increased by more than VND 800. Compared to the beginning of the year, each USD at commercial banks has increased by more than VND 1,000. USD/VND exchange rate is making waves again. The VND/USD exchange rate is facing a double impact from both global and domestic factors. The DXY index (measuring the fluctuation of the US dollar against six major currencies) increased by 2.4% since the beginning of October, reaching 104 points. Mr. Nguyen Minh Tuan, CEO of AFA Capital, stated that the exchange rate has become a concern in the past two weeks and the DXY index is at a very tense level for Vietnam’s exchange rate. “Previously, many believed that the...

While Indian imports, often associated with consumption, have moderated, gold ETFs saw their tenth consecutive inflow (+US$66.7mn; Rs6.5bn) in January. The RBI also made its largest gold purchase in more than a year and a half. Looking forward, gold jewelry demand will likely remain subdued for the next couple of months but investment demand may continue to fare better. Read more about the Indian gold market in our deep dive from Kavita Chacko: https://lnkd.in/eDRarSD5 #Gold #India World Gold Council

𝐆𝐨𝐥𝐝 𝐩𝐫𝐢𝐜𝐞𝐬 𝐡𝐢𝐭 𝐫𝐞𝐜𝐨𝐫𝐝 𝐡𝐢𝐠𝐡𝐬 𝐢𝐧 𝐠𝐥𝐨𝐛𝐚𝐥, 𝐥𝐨𝐜𝐚𝐥 𝐦𝐚𝐫𝐤𝐞𝐭𝐬 #Gold prices have surged to new all-time highs in both global and local markets due to recent increases. In the international bullion market, the price of gold per ounce rose by $11, reaching a new high of $2,737. As a result, local #jewellery markets also saw a rise, with the price of 24-carat gold per tola increasing by Rs1,100, reaching a record high of Rs283,400.

⚡ Gold Prices Started the Week with a Rise - With the fluctuations in the markets in recent weeks, there has been a remarkable increase in gold prices. Gold, which followed a relatively horizontal course last week, attracted attention with an upward movement at the beginning of this week.

Gold Flying High in August - Following a strong monthly increase in July, gold posted another healthy gain in August to finish 3.6% higher at US$2,513/oz. It also reached a new all-time on 20 August before a very marginal decline into month end. - According to our Gold Return Attribution Model (GRAM), gold was pulled higher by a material drop in the US dollar and, to a lesser extent, lower 10-year Treasury yields as the Fed signaled the time had come for rate cuts. - The main identifiable negative contribution came from a momentum factor, the gold return in the previous month, i.e. when high, the following month typically sees a lower return and vice versa. - Also of note in August, the significant cut in import duty on gold in India, which took place in late July, has been a shot in the arm for gold demand in the country. Anecdotal reports suggest the duty reduction was followed by strong buying interest from jewelry retailers as well as consumers. https://lnkd.in/gAxmMpiU

Investment in Gold: Gold Prices increase by Rs 4,600 per Tola in one day #goldrates #goldprices Following indications from the US central bank of a possible interest rate cut, global gold prices have risen, resulting in a record increase in gold prices in Pakistan as well. On Thursday, the gold price per tola increased by Rs 4,600, bringing the cost to Rs 254,000 per tola in the country. According to gold traders, the price of gold per ounce in the international market has risen by $60, and this increase is being reflected in the local market. The price of 10 grams of 24-carat gold has increased by Rs 3,944, now standing at Rs 217,764. Similarly, the price of gold per tola has risen by Rs 4,600, now costing Rs 254,000. Abdullah, a representative of the All Pakistan Gems and Jewellers Association, told Urdu News that the trend of reducing interest rates by the US central bank is leading investors to consider gold as a safe investment, prompting them to purchase gold. He further stated that the rise of $60 per ounce in the international market is now being reflected in the local market as well. He noted that while the price of gold in Pakistan has increased by more than Rs 4,000 on Thursday, the local market is still undervalued by approximately Rs 4,000 compared to the international market. He added that the increase in gold prices is significantly impacting the local market, with people now preferring to buy artificial jewelry due to the high cost of gold. Haroon Chand, a representative of the Sarafa Association, explained that the Pakistani market trades in line with the international market, and any price increase in the global market will also be reflected in the Pakistani market. Muhammad Waqas, a trader of artificial jewelry on Karachi’s Tariq Road, mentioned that due to the high gold prices, there has been a continuous increase in demand for artificial jewelry over the past month. https://lnkd.in/ewgaWmxf