Closing the trading week from June 15 – June 21, the world and domestic gold markets recorded a slight increase. Analysts say that in the long run, the wave of Covid-19 infection can support this precious metal.
Gold prices increased slightly
In the first session of the week, concerns about the new wave of Covid-19 infection in the world led investors to seek safe haven assets. This caused world and domestic gold prices to increase slightly.
Week of slight increase in domestic gold prices. Photo: VNA
Domestic gold price on June 16 continued to be adjusted by businesses with a slight increase in the context of a slight increase in world gold price, after the US Federal Reserve (Fed) expanded its debt purchase program to limit business debt. Economic losses caused by the Covid-19 pandemic.
Domestic gold price continued to increase slightly in the next sessions and only in the weekend session, domestic gold price reversed and decreased slightly according to the world gold price.
On the night of 18/6, gold prices went down after the latest figures showed that the number of applications for unemployment benefits in the US decreased last week, amid the Beijing (China) government is trying to control. Covid-19 translation. However, the increasing number of Covid-19 infections globally has limited the decline in gold prices.
On the morning of June 21, Saigon Jewelry Company listed SJC gold price in Hanoi market at 48.5 to 48.87 million dong / tael (buy – sell). And at Bao Tin Minh Chau Jewelry Company, SJC gold price is also traded at – sold at 48.56 – 48.74 million VND / tael. For the whole week, gold businesses adjusted SJC gold price to increase by VND 50,000 – 100,000 / tael.
Buying motivation will recover
World gold price increased by 0.9% in the past week. Jeffrey Sica, founder of financial advisory firm Circle Squared Alternative Investments, said the number of new Covid-19 infections in the southern and southwestern United States continued to increase along with hospitalization rates.
That has caused some concerns for the market about the possibility of a new social gap, thereby creating momentum for gold to rise.
Mr. Sica also said that in the context of the threat of a subsequent spread, despite long-term consequences such as high inflation, governments around the world will continue to implement economic stimulus measures. International. This movement will support gold prices in the long term.
Since the beginning of the year, gold price has increased by about 15% due to safe haven demand of investors. The market is still concerned about the risk of recession as well as the unprecedented large-scale financial and monetary support measures of the Governments and central banks. These are factors that reduce bond interest rates and raise concerns about inflation.
Saxo analyst Ole Hansen wrote in a note that spot gold has not yet surpassed the $ 1,750 / ounce threshold. If that happens, the expert believes that buying momentum will recover and new purchases from hedge funds will push the price of gold higher, perhaps even as much as $ 1,800 an ounce.