Gold will be less attractive?

Analysts say that the rally for the dollar and 10-year US Treasury yields are making gold less attractive to buyers holding other currencies.

At the Hanoi market, closing the last trading session on April 2, the price of SJC gold was listed by Saigon Jewelry Company Limited at 68.3 – 69.07 million VND/tael (buy in). – sold), reduced by 100,000 dong/tael in both buying and selling direction compared to yesterday’s closing.

So, domestic gold price decreased by 550,000 VND/tael in the past week. Before that, gold price continued to trade sideways from the beginning of the week around 69 million dong/tael, similar to last week.

Analysts say that the rally in the dollar and 10-year US government bond yields are making gold less attractive to buyers holding other currencies.

Accordingly, the US Department of Labor published data showing that the economy The largest in the world added 431,000 jobs in March, bringing the unemployment rate down to 3.6%. Analysts had expected the US economy to add about 490,000 jobs in March and the unemployment rate to fall to 3.7%.

The unemployment rate fell to its lowest level in nearly two years and wages rebounded, reinforcing forecasts that the Fed will raise interest rates by 0.5 percentage points in May. Expectations of a rate hike have kept gold down. , as that drives up the opportunity cost of holding this unprofitable precious metal.

Spending consumption Flexibility and strong labor demand have boosted the US economy to create steady job growth. The US Department of Labor also adjusted the increase in jobs in January-February 2022 to a total of 95,000 jobs, bringing the total number of new jobs created so far this year to 1,685,000.

However, Bart Melek, head of commodity strategy at TD Securities, said:Fed policy has a long way to go, and gold will stay firm.”

Meanwhile, talks to end the conflict between Russia and Ukraine are expected to resume even as Ukraine prepares for further attacks.

On the world market, the last drop of the week caused the gold market to close a gloomy trading week, after the positive US jobs report in March 2022 pushed the dollar up, and at the same time strengthened the gold market. adding to the expectation that the FED will promote interest rate hikes in the near future.

Specifically, in the last session of the week on April 1, the gold price reversed to decrease due to the uptrend of the greenback after the US employment data for March 2022 was announced. At the end of this session, spot gold price fell 0.8 percent to $1,921.86 per ounce. Gold futures delivery lost 1.6%, down 1,923.7 USD/ounce. The price of this precious metal fell 1.8% in the past week.