Gold price increased again, short-term trend is difficult

9 ott 2023

Even though the USD and US Government bond yields increased quite strongly this morning, investors still put their gold purchasing power to hedge against risks. Specifically, the Dollar-Index - which measures the strength of the USD in a basket of 6 currencies, increased by 0.24% compared to the previous session, to 106,300 points, at 6:13 a.m. this morning. (Hanoi time) None I).

Hard US Government bond yields remained around the 16-year high, increasing 0.28% to 4.795%/year at 6:15 a.m. this morning.

Experts say that the increase in gold prices despite two profitable assets, bond yields and the increase in the USD, is due to the increasing conflict in the Gaza Strip, which has so far shown no signs of cooling down.

According to experts, when geopolitical tensions escalate, it will create economic activity regardless of the regime. Because global commodity supply chains will more or less affect and disrupt supply. This will make economies that are still deeply hurt by the epidemic and geopolitical tensions in Russia - Ukraine, now continue to be hurt by tensions in the Gaza Strip.

However, experts also warn that investors should be careful when on October 12, the US will announce the September consumer price index (CPI). This is the number that determines whether or not the US Federal Reserve (Fed) will raise interest rates. If this index increases or is forecast, many Feds are still likely to raise interest rates once, putting pressure on gold.