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It’s not a good time to buy gold now, experts say
Gold traders were hesitate on investing more in the precious metal as the physical gold carried high risk of losses in the last two weeks, analysts said.
The global gold price’s trading band fluctuated in low rates last week, closing at US$1,350 per ounce. The local price meanwhile remained unchanged at VND36 million per tael.
The gap was narrowed on the fact that Vietnam’s central bank has granted more quotas to import gold by year-end, in a bid to cool domestic gold prices and interest rate jumped to 16-18 percent per annum.
Gold experts expect the global gold price will reach the resistance level of $1,424 per ounce as it closed at $1,410 per ounce last weekend.
They also recommended that gold was overbought, so investors should be cautious in restructuring their investment portfolio.
Local gold price remained around VND300,00-400,000 higher than the global one. However, the local price will likely to retreat on imported gold tax rate of zero percent, interest rate of 16 percent per year and the recover of the stock market.
Gold traders expect the global price will make corrections this month, which is the festival season at many foreign countries around the world.
Experts also predicted that the yellow metal will remain the best asset class with high profit rate in the upcoming time as the global gold price will likely to hit the level of $1,600 per ounce.
Global gold on a rise
The global gold price opened at $,353-1,357 per ounce and closed higher at $1,414 per ounce last week on a job report. Statistics showed the number of non-agriculture jobs last month increased only 39,000, much lower than the expectation of 140,000-155,000 jobs, while unemployed rate rose unexpectedly to 9.8 percent.
Gold steadied on Monday after rising nearly 2 percent in the previous session to above $1,400 an ounce, with a struggling U.S. dollar that pushed silver to its highest since early 1980 likely to spur more buying from investors, according to Reuters.
Any signs of a weaker U.S. economy or heightened tensions between the two Koreas could also bolster gold, while worries about euro zone sovereign debt remain on investor minds.
South Korea started live-fire naval exercise on Monday, despite Pyongyang's warnings against conducting the drills in disputed waters off the west coast of the peninsula.
Spot gold rose to $2.15 an ounce to $1,416.50 by 0709 GMT, having hit a low around $1,408. Gold had risen as high as $1,415.36 on Friday as the dollar tumbled following disappointing jobs data in November.
Bullion hit a record high around $1,424 an ounce in November.
Hoang Uy
sggp
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