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Tag: gold

  • First 24/7 Gold ATM Sparkles in Dubai: Emirates Gold Revolutionizes Bullion Trade

    First 24/7 Gold ATM Sparkles in Dubai: Emirates Gold Revolutionizes Bullion Trade

    Emirates Gold, a leading bullion retailer, has made history by unveiling the first-ever gold Automated Teller Machine (ATM) in the United Arab Emirates (UAE). This pioneering system gives customers the ability to withdraw and trade physical gold around the clock.

    Gold Trading at Your Fingertips

    Located within the towering architecture of Almas Tower in Dubai, this gold ATM is the inaugural installation of what is projected to be a network of up to 40 such machines, due to be set up within the current and coming year.

    The ATM gives users access to more than 70 diverse designs of gold and silver bars in smaller denominations, presenting them with a wide variety of options for collection, investment, or gifting purposes. The process is simple and efficient – users scan to make the payment, select their desired products at live spot prices and are able to receive their physical bullion in an instant.

    Future Prospects and Features

    In addition to the current offering, there are plans to incorporate additional features in the near future. These include options for online order collection as well as the conversion of cryptocurrency.

    Surge in UAE Gold Demand

    In recent years, the UAE has seen a significant influx in gold demand. In 2024 alone, gold demand reached an impressive 66 tonnes. This substantial demand is largely driven by tourist purchases, accounting for a substantial 30% of the total, and local residents seeking to diversify their portfolios beyond traditional real estate and equities.

    The sale of smaller bars, ranging from 1g to 100g in weight, has also seen a significant surge, constituting 40% of the retail market, a marked increase from the 25% in 2020.

    The Rise of Gold Recycle ATMs

    On a global scale, the popularity of gold recycling ATMs has also been on the rise. For instance, in May, a gold recycling ATM in China’s Shanghai attracted large crowds, particularly among older residents eager to cash in their long-held jewelry as global gold prices continue to climb.

    Questions & Answers

    What is a gold ATM?
    A gold ATM is an automated machine that allows customers to withdraw and trade physical gold around the clock.

    What future features are expected to be added to the gold ATMs?
    In the near future, the gold ATMs will incorporate features for online order collection and the conversion of cryptocurrency.

    What factors have led to the surge in UAE gold demand?
    The surge in UAE gold demand is largely attributable to tourist purchases and the growing interest of local residents to diversify their portfolios beyond traditional real estate and equities.

  • Indonesia Cracks Down on 1,400 Illegal Gold Mines: A Sweeping Environmental Rescue in Halimun Salak National Park

    Indonesia Cracks Down on 1,400 Illegal Gold Mines: A Sweeping Environmental Rescue in Halimun Salak National Park

    Indonesia has embarked on an ambitious initiative to eradicate approximately 1,400 unauthorized gold mines located in the Mount Halimun Salak National Park area, situated in the Sukabumi district of West Java province. In the month of November alone, local authorities have succeeded in shutting down close to 300 mining sites.

    Government Stance on Illegal Mining

    Rudianto Saragih Napitu, who heads the Forestry Crime Enforcement arm of the Indonesian Ministry of Forestry, voiced his concerns regarding the illicit mining operations. According to him, the benefits of these activities remain confined to investors, offering little to no value to the local people employed in these mines.

    He went on to state that while the government endorses positive alliances, it remains staunchly opposed to activities leading to environmental destruction and exploitation.

    Environmental Impact of Unauthorized Mining

    The issue of illegal gold mining is not new to Indonesia and is known to cause significant environmental damage. This includes deforestation, waterbody pollution, and the depletion of national resources.

    Illegal mining sites are chiefly clustered in several regions such as Jambi, West Sumatra, West Kalimantan, Central Sulawesi, and certain areas in Maluku. Additionally, some national parks, including Halimun Salak, are also a part of this issue.

    Questions & Answers

    What is the impact of illegal gold mining in Indonesia?
    Illegal gold mining in Indonesia leads to severe environmental consequences, including deforestation, river pollution, and loss of national resources.

    What is the government’s stance on illegal mining activities?
    The government, while endorsing positive partnerships, is against any activities that lead to environmental destruction and exploitation.

    Where are the hotspots for illegal gold mining in Indonesia?
    Illegal gold mining hotspots in Indonesia are primarily located in Jambi, West Sumatra, West Kalimantan, Central Sulawesi, some parts of Maluku, and in certain national parks such as Halimun Salak.

  • Singapore Unveils First Locally Vaulted Physical Gold Fund: A New Era for Precious Metals Investment

    Singapore Unveils First Locally Vaulted Physical Gold Fund: A New Era for Precious Metals Investment

    Singapore has recently launched its inaugural fully insured and locally stored physical gold fund. The move enhances the city-state’s prestige as an international financial center and a hub for precious metals.

    The LionGlobal Singapore Physical Gold Fund was unveiled following an alliance between Singlife and Lion Global Investors (LGI). It provides retail and policyholder portfolios with access to institution-grade bullion. This construct was designed to cater to the increasing demand for diversification and protection from long-term inflation, as reported in a press release on Tuesday.

    The fund is entirely backed by physical gold bars that meet the London Bullion Market Association’s Good Delivery standards. This arrangement allows investors to gain exposure to the performance of the metal’s price while circumventing the logistical costs and security risks associated with private storage.

    Transparent Tracking

    The fund securely stores and insures all holdings in Singapore and aims to closely emulate the LBMA Gold Price AM benchmark. This practice ensures the transparent tracking of the global reference price.

    The fund’s availability on Singlife’s ILPs is designed to let policyholders include physical gold exposure in their long-term insurance-linked savings and retirement plans.

    Digital Access

    Stanz Tan, Head of Investments and Wealth at Singlife, stated that this option supports “diversification, wealth preservation, and growth” as market dynamics develop. Digital access is a fundamental aspect of this rollout. Through GROW and dollarDEX, investors can add gold to their portfolios with minimal entry amounts.

    Lion Global Investors CEO Teo Joo Wah stressed that Singapore’s reputation as a reliable financial and gold-trading hub makes it the perfect location for a fully backed physical gold fund. This initiative, he said, makes gold exposure “simpler and more secure for policyholders and investors alike” and aligns with the long-term structural demand for the metal.

    Institutional Framework

    Standard Chartered Bank acts as the custodian, trustee, fund administrator, transfer agent, and gold provider, centralizing oversight under a single institution with extensive experience in precious metals operations. This structure is designed to reinforce governance, safeguard assets, and enhance operational efficiency for investors seeking institutional-grade protections.

    The launch, backed by partners including OCBC, MariBank, and Great Eastern, aligns with Singapore’s SG60 anniversary and utilizes the country’s refreshed aspirations in wealth management and gold custody.

    This consortium-led approach underscores the fund’s role in shaping a more comprehensive precious metals market accessible to retail and institutional investors.

    Questions & Answers

    What is the LionGlobal Singapore Physical Gold Fund?
    The LionGlobal Singapore Physical Gold Fund is a physical gold fund that is fully insured and locally stored. It was launched through a partnership between Singlife and Lion Global Investors.

    How does the fund ensure transparent tracking of the global reference price?
    The fund securely stores and insures all holdings in Singapore and aims to mirror the LBMA Gold Price AM benchmark closely.

    Who are the key players involved in the launch of this fund?
    Key players in the launch of the LionGlobal Singapore Physical Gold Fund include Singlife, Lion Global Investors, Standard Chartered Bank, OCBC, MariBank, and Great Eastern.

  • Vietnam Gold Price Soars Amid Anticipated Federal Reserve Interest Rate Cut: An 89.9% Increase Since Start of Year

    Vietnam Gold Price Soars Amid Anticipated Federal Reserve Interest Rate Cut: An 89.9% Increase Since Start of Year

    On Tuesday morning, Vietnam saw a rise in the price of gold, in line with global rates which experienced an upward trend. This increase is attributed to market anticipation of a Federal Reserve interest rate cut.

    The Saigon Jewelry Company reported a 1.66% increase in the price of their gold bars, with the cost reaching VND152.9 million, equivalent to US$5,777.32 per tael. In addition, the price of their gold rings also experienced a rise of 1.68%, costing VND151 million per tael. To clarify, one tael is approximately 37.5 grams, or 1.2 ounces.

    Gold Price Surge

    There has been a marked increase in Vietnam’s gold price since the start of the year, with an overall surge of 89.9%.

    International spot gold also saw an increase, adding 0.27% to its value and reaching $4,144 per ounce. This rise is supported by growing hopes for a Federal Reserve interest rate cut in the coming month and the anticipation of fresh U.S. economic data offering further insights into monetary policy.

    Anticipation for Interest Rate Cut

    The head of commodity strategies at TD Securities, Bart Melek, stated, “The market is increasingly convinced that the U.S. Federal Reserve is set to cut interest rates in December.”

    Gold, a non-yielding asset, typically performs positively in situations where interest rates are low. This is particularly true during times of geopolitical and economic instability.

    Melek added, “We’re awaiting data, and the expectation is that it may display weakness. Inflation is likely not very high, and this all suggests that gold will perform well.”

    Questions & Answers

    Why has there been a surge in gold prices in Vietnam?
    The uptick in gold prices in Vietnam can be attributed to the anticipation of a Federal Reserve interest rate cut, along with global gold prices demonstrating a similar upward trend.

    How does the potential cut in interest rates affect gold prices?
    Gold, being a non-yielding asset, tends to perform well in low-interest-rate environments. The anticipation of a cut in interest rates therefore often leads to an increase in gold prices as investors seek stable investments.

    What does the future hold for gold prices?
    While it’s challenging to predict with certainty, current market expectations are that gold will continue to perform well, particularly if inflation remains low and economic data indicates weakness.

  • Vietnam’s Gold Prices Soar Despite Global Dip: Market Awaits US Fed Insight

    Vietnam’s Gold Prices Soar Despite Global Dip: Market Awaits US Fed Insight

    On Wednesday morning, the price of gold in Vietnam increased, while global bullion rates experienced a minor drop. Saigon Jewelry Company’s gold bar price rose by 0.94%, reaching VND150.7 million (US$5,713.52) per tael. Notably, local prices are approximately VND21 million per tael higher than global rates.

    Gold Ring Prices Also Increase

    The price of gold rings experienced a growth of 0.41%, reaching VND148.4 million per tael. For reference, one tael is equivalent to 37.5 grams or 1.2 ounces.

    Global Gold Trend

    On a global scale, gold prices slightly dropped on Wednesday due to a stronger dollar. Investors are currently awaiting the minutes from the Federal Reserve’s latest policy meeting and the upcoming U.S. jobs report, which can provide further insight into the trajectory of the central bank’s interest rates.

    Spot gold decreased by 0.2%, settling at $4,059 per ounce. Furthermore, U.S. gold futures for December delivery saw a marginal decline of 0.1%, falling to $4,061.60 per ounce.

    Market Analyst Perspective

    According to Tim Waterer, Chief Market Analyst at KCM Trade, the momentum of gold has been somewhat hindered by a stronger USD and uncertainties regarding the next Federal Reserve rate cut. However, he noted that gold remains attractive to investors as a safe investment during periods of market risk aversion, which has limited its decline.

    Economic Indicators

    Data released on Tuesday revealed that the number of Americans receiving unemployment benefits was at a two-month high in mid-October. The U.S. Federal Reserve reduced interest rates by 25 basis points last month, however, Chair Jerome Powell has expressed caution about another rate cut this year, due in part to a lack of data. It’s worth noting that non-yielding gold tends to perform well in a low-interest-rate environment and during times of economic uncertainties.

    Questions & Answers

    What factors have influenced recent gold prices?
    Recent gold prices have been affected by a combination of local and global factors, including a stronger USD, investor anticipation of Federal Reserve decisions, and economic uncertainties.

    Why does the price of gold increase during times of economic uncertainty?
    Gold is often seen as a safe haven investment by investors during times of economic uncertainty. As such, its price increases as demand for it grows.

    What is the significance of the U.S. Federal Reserve’s interest rate decisions on global gold prices?
    Decisions by the U.S. Federal Reserve regarding interest rates can significantly impact global gold prices. This is because these decisions affect the value of the USD, which in turn influences the attractiveness of gold as an investment.

  • Golden Milestone: China Strikes Largest Gold Deposit Since 1949 Worth Nearly $193 Billion

    Golden Milestone: China Strikes Largest Gold Deposit Since 1949 Worth Nearly $193 Billion

    A significant gold deposit estimated to hold approximately 1,444 tonnes of reserves, valued at nearly US$193 billion, has been identified in China. This monumental find is the largest for the nation since 1949.

    The Discovery

    The find, termed as the Dadonggou deposit, is situated in China’s northeastern Liaoning Province. According to the country’s Ministry of Natural Resources, it is estimated to contain around 1,444.49 tonnes of gold within 2.586 billion tonnes of ore. Despite the ore being of a low grade, with an average grade of 0.56 grams per tonne, the sheer size of the deposit has earned it the title of the largest single gold discovery in China since 1949.

    With current market rates, the estimated value of the gold deposit is over 166 billion euro (US$192.9 billion).

    Collaborative Development

    The development of the Dadonggou mine is set to be a collaborative effort, with the China National Gold Group, Liaoning Mineral Geology Group, and the Yingkou Municipal Government partnering up. Investment plans from 2024 to 2027 indicate an estimated expenditure of over 20 billion yuan (US$2.82 billion). This investment will be directed towards establishing a comprehensive industry chain which includes exploration, mining, processing, smelting, and gold jewelry production.

    Previous Discoveries

    In the past year, China has reported several similar gold deposit discoveries, such as a substantial find in Hunan province. Prior to these discoveries, the world’s largest known gold deposits typically held only a few hundred tonnes.

    Industry estimates previously suggested that around 3,000 tonnes of gold remained undiscovered in China. This figure was considered to be a quarter of the untapped reserves in Russia and Australia. However, the frequency of new discoveries implies that China’s gold reserves could be considerably larger than previously believed.

    Recent Trends

    China has been increasing its mineral exploration activities in recent years. In 2024, the country produced 377.24 tonnes of gold, marking a 0.56% increase from the previous year. Domestic consumption of gold reached 985.31 tonnes, with the demand for gold bars and coins rising by over 24%.

    This latest discovery coincides with an increase in the global demand and price for gold. The value of the precious metal has soared by over 50% this year, reaching a peak of $4,381.21 per ounce on October 20. Factors contributing to this surge include a weaker dollar, geopolitical tensions, and aggressive central bank buying in emerging economies aiming to diversify their reserves.

    Questions & Answers

    Where was the largest gold deposit found in China?
    The largest gold deposit in China, named the Dadonggou deposit, was discovered in the northeastern Liaoning Province.

    What is the estimated value of the Dadonggou deposit?
    The estimated value of the Dadonggou deposit, at current prices, is approximately 166 billion euro or US$192.9 billion.

    Who will be responsible for the development of the Dadonggou mine?
    The development of the Dadonggou mine will be a joint project between the China National Gold Group, Liaoning Mineral Geology Group, and the Yingkou Municipal Government.

  • Vietnam’s Gold Prices Skyrocket to 3-Week High Amid Global Rate Surge and U.S. Government Resumption

    Vietnam’s Gold Prices Skyrocket to 3-Week High Amid Global Rate Surge and U.S. Government Resumption

    The price of gold in Vietnam saw a significant increase on Tuesday, reaching its peak since October 21st. This uptick was reflective of a global surge in gold prices, spurred by the anticipation of the U.S. government’s resumption.

    Saigon Jewelry Company reported a 1.20% increase in their gold prices, now standing at VND152 million (US$5,777.28) per tael. A tael, a common unit of measurement used in East Asia, equates to 37.5 grams or 1.2 ounces.

    Rise in Gold Jewelry Prices

    In line with the increase in gold prices, the cost of gold rings also saw a rise of 1.35%, now costing VND149.8 million per tael. So far this year, the price of gold in Vietnam has surged by a substantial 80.5%.

    Global Gold Rates

    Internationally, gold prices have been on a steady upward trend, reaching near three-week highs on Tuesday. These gains are believed to be influenced by expectations of another U.S. Federal Reserve interest rate cut in December, as well as indications of an end to the U.S. government shutdown.

    The price of spot gold also increased by 0.7%, reaching $4,142.83 per ounce, its highest since October 24th.

    Impact of U.S. Government Shutdown

    The U.S. Senate recently passed a deal to restore U.S. federal funding, marking an end to the longest government shutdown in history. This shutdown led to delays in key economic indicators, such as the U.S. non-farm payrolls report.

    The end of the shutdown is expected to provide more clarity on the U.S. economic outlook as well as the Federal Reserve’s interest rate trajectory. It is believed that the resolution of the shutdown has lifted a level of uncertainty, allowing markets to refocus on major speculative narratives for the year.

    According to Ilya Spivak, head of global macro at Tastylive, the upside is still favored for the rest of the year. With the path of least resistance for gold trending back to October’s high, it is anticipated that prices may continue to rise thereafter.

    Questions & Answers

    What caused the recent surge in gold prices in Vietnam and globally?
    Anticipation of the resumption of the U.S. government and expectations of another U.S. Federal Reserve interest rate cut in December are believed to have spurred the recent surge in gold prices.

    How has the U.S. government shutdown impacted the gold market?
    The U.S. government shutdown led to delays in key economic indicators, creating a level of uncertainty in the market. With the resolution of the shutdown, this uncertainty has been lifted, allowing markets to refocus and consequently affecting gold prices.

    What is the outlook for gold prices for the rest of the year?
    According to experts, the upside is still favored for the rest of the year, with potential for prices to continue rising.

  • Vietnam Gold Prices Tumble Despite Global Stability: A Detailed Analysis Amid US Interest Rate Speculations

    Vietnam Gold Prices Tumble Despite Global Stability: A Detailed Analysis Amid US Interest Rate Speculations

    On Tuesday morning, the price of gold in Vietnam dropped, even as global rates remained stable. A notable drop was seen in the gold bar from Saigon Jewelry Company, which decreased by 0.53%, making its current price VND148.2 million (US$5,628.34) per tael.

    Changes in Local and Global Gold Prices

    There was also a decrease in the price of gold rings, with rates falling by 0.34%, establishing a current price of VND145.9 million per tael of 37.5 grams, or 1.2 ounces. Despite such recent drops, there has been a significant increase in the price of gold in Vietnam throughout the year, with a surge of 76% observed so far.

    On a global scale, gold prices remained largely unchanged as investors anticipated the U.S. private payroll data expected to be released later this week. This data is critical in assessing the potential for an additional interest rate cut from the U.S. Federal Reserve this year.

    Stability in Spot Gold Prices

    Spot gold displayed minimal changes, maintaining a steady rate at $3,993.10 an ounce. Edward Meir, an analyst at Marex, suggests that gold is in the process of establishing a trading range, potentially in the high 3000s to the mid-4000s. This range is considered a consolidation following a significant move in prices.

    Despite a sharp increase of 53% this year, there has been an 8% decrease in the price of the metal from the record high that was observed on October 20th. Ole Hansen, the head of commodity strategy at Saxo Bank, commented on the current trend in gold prices. He noted, “Gold’s pause still looks like a breather, not a breakdown. Seasonal softness, temporary Chinese policy noise, and a firmer dollar explain the short-term retreat, but none change the longer-term narrative.”

    Questions & Answers

    What is the current price for Saigon Jewelry Company’s gold bar?
    The current price for Saigon Jewelry Company’s gold bar is VND148.2 million (US$5,628.34) per tael.

    By how much has the price of gold in Vietnam increased this year?
    The price of gold in Vietnam has seen a substantial increase of 76% this year.

    What factors are contributing to the current global gold price trend?
    Several factors, including seasonal softness, temporary Chinese policy noise, and a stronger dollar, are contributing to the short-term retreat in global gold prices. However, these do not influence the longer-term narrative.

  • Unprecedented Gold Rush: Global Demand Hits Record High Amid Surging Investment

    Unprecedented Gold Rush: Global Demand Hits Record High Amid Surging Investment

    In the third quarter, global gold demand experienced a 3% annual increase, amounting to 1,313 metric tons. This marked the highest level of demand ever recorded, primarily driven by a surge in investment demand, reported the World Gold Council.

    Spot Gold Prices Rise

    Spot gold prices have seen a remarkable increase of 50% in the year to date, culminating in a record high of $4,381 per troy ounce on October 20th. This surge can be attributed to safe-haven demand triggered by geopolitical instability, uncertainty surrounding U.S. tariffs, and a recent wave of ‘fear-of-missing-out’ or ‘FOMO’ buying.

    Senior markets analyst at the World Gold Council, Louise Street, expressed optimism regarding the future of gold. She pointed to factors such as ongoing weakness in the U.S. dollar, predictions of lower interest rates, and the potential threat of stagflation, that could further stimulate investment demand. Street also noted that their research suggests the market is not yet saturated.

    Gold Bar and Coin Demand Increase

    The demand for gold bars and coins witnessed a rise of 17% in the third quarter, with India and China leading the way. Inflows into physically backed gold exchange-traded funds soared by 134%, according to the industry body whose members comprise global gold miners.

    These categories combined managed to counterbalance the continuing steep decline in gold jewellery fabrication, which is the largest category of physical demand. The latter saw a 23% drop to 419.2 tons as high prices deterred buyers worldwide.

    Central Banks Boost Gold Demand

    Central banks, another significant source of gold demand, ramped up their purchases by 10% to 219.9 tons in the third quarter. This estimate was based on reported purchases and the World Gold Council’s assessment of unreported buying.

    From January to September, central banks have acquired 634 tons, which although lesser than the unusually high amounts of the last three years, is still significantly higher than the levels recorded before 2022.

    Gold Supply Reaches Record High

    On the supply side, a 6% contribution from recycling and a 2% increase in mine production in the third quarter led to the gold supply reaching an all-time high.

    Questions & Answers

    What factors are contributing to the increased demand for gold?
    Economic factors such as continued U.S. dollar weakness, lower interest rates, and the threat of stagflation are driving increased investment demand for gold.

    Which countries are leading in the demand for gold bars and coins?
    India and China are currently leading in the demand for gold bars and coins.

    How have central banks influenced gold demand?
    Central banks have increased their purchases by 10% to 219.9 tons in the third quarter, thereby significantly influencing gold demand.

  • Philippines Contemplates Major Gold Sell-Off Amidst Skyrocketing Prices and ‘Excessive’ Reserves

    Philippines Contemplates Major Gold Sell-Off Amidst Skyrocketing Prices and ‘Excessive’ Reserves

    The central bank of the Philippines, Bangko Sentral ng Pilipinas (BSP), is currently considering whether to hold onto or sell a portion of its substantial gold reserves. This comes following comments from Benjamin Diokno, a member of the bank’s Monetary Board and former governor, who noted that gold prices are likely to decrease from their record heights.

    Decisions on Gold Reserves

    In a recent interview, Diokno raised the idea of the BSP selling some of its “excessive” gold reserves to turn a profit. He pointed out that gold comprises around 13% of the bank’s gross international reserves, a percentage that is significantly higher than other central banks in the region. The ideal range, according to Diokno, should fall between 8-12%.

    The total reserves of the BSP, amounting to nearly US$109 billion, include gold, foreign exchange, foreign-denominated securities, and other assets.

    Gold Prices and Past Decisions

    The Philippines amassed a significant amount of its gold reserves when prices were situated near $2,000 per ounce. Since this point, the value of gold has more than doubled, reaching a record peak of $4,381.21 on October 20. Following this peak, prices fell below $4,000 as investors capitalized on the easing of geopolitical tensions and chose to make a profit.

    Despite the current uncertainty surrounding the future of gold prices, Diokno posed the question, “Shouldn’t you sell already? What will happen if the price goes down?”

    Even with a recent dip, the value of gold has increased by 52% since the beginning of the year, partly due to substantial purchases made by central banks. Predictions for the future of gold prices vary, with some analysts expecting a further decline while others anticipate new record highs.

    Public Criticisms and Future Considerations

    In the past, the BSP faced backlash for selling a portion of its gold reserves in 2024 before prices experienced a substantial surge. However, Governor Eli Remolona Jr. defended this decision, arguing that the sale was spurred by sound portfolio management strategies, rather than an attempt to exploit market conditions.

    Remolona explained that the decision to sell the gold arose after its share in the reserves exceeded the ideal ratio. He maintained that the bank does not seek to predict gold prices, nor does it base its decisions on such predictions. The bank’s priority is to maintain a balanced portfolio.

    The BSP has previously noted that gold often acts as a hedge against price declines in other reserve assets. However, the bank also acknowledged that gold prices can be volatile, yield little interest, and incur storage costs.

    Questions & Answers

    Why is the Philippine central bank considering selling its gold reserves?
    The BSP is exploring this option due to suggestions that the bank’s gold holdings are “excessive.” As gold prices are currently at a record high, the bank could make a significant profit by selling a portion of its reserves.

    What percentage of the bank’s gross international reserves is made up of gold?
    Approximately 13% of the BSP’s gross international reserves is comprised of gold. According to former governor Benjamin Diokno, the ideal range should be between 8-12%.

    What factors influence the central bank’s decision to sell its gold reserves?
    Decisions to sell gold reserves are driven by portfolio management strategies rather than the anticipation of future market conditions. The bank aims to maintain a balanced and profitable portfolio.

  • Gold Rush Down Under: Massive Queues at Sydney Bullion Stores Amid Investment Frenzy

    Gold Rush Down Under: Massive Queues at Sydney Bullion Stores Amid Investment Frenzy

    In the face of global uncertainty, Australians in Sydney have been flocking to buy gold, a traditionally regarded safe-haven investment. Long queues have formed outside gold bullion stores as people patiently wait their turn to secure this precious metal.

    Gold Buying Rituals Amidst Challenges

    For Prakas, a Nepali Australian, purchasing gold during Diwali, an annual Hindu festival, is a treasured tradition. Yet, this year, this ritual proved to be a daunting task due to the thousands of Australians lining up for gold in Sydney. On October 18, Prakas drove to Sydney’s central business district, only to find approximately 400 people in line at the ABC Bullion store on Martin Place. Disheartened, he returned home. He later attempted to order online, but the expedited process still led him to a two-hour waiting line for online pre-purchasers.

    Gold Demand Skyrockets

    The demand for gold, a traditional hedge in uncertain times and a non-yielding asset, has soared by over 51% this year. This surge is attributed to ongoing geopolitical and trade tensions, as well as anticipated U.S. interest rate cuts. The ABC Bullion store on Martin Place recently experienced an influx of customers, with retirees and families jostling around the entrance in hopes of making a purchase, their presence persisting throughout the day. Jordan Eliseo, the store’s general manager, reported approximately 1,000 customers visiting daily for over a month, with thousands more opting for online purchases. Buyers from across the city arrive as early as 9 a.m. to secure their spots in line, while others wait for hours to make their purchases. To accommodate the rush, Eliseo extended trading hours and added five new staff members in the last two weeks.

    The Gold Market’s Potential Risks

    Despite the current gold-rush frenzy, market experts warn of potential risks in the gold market. Chief economist at a financial services firm, Shane Oliver, expressed concerns that the lengthy queues could be a red flag indicating a speculative market prone to correction. His warning seemed prophetic when, on October 22, gold prices plummeted 6.8% to $4,082.35 per ounce, marking the steepest single-day drop in 12 years. Although the price slightly rebounded later that week, it still ended lower, disrupting a record nine-week rally. Ray Attrill, head of FX strategy at National Australia Bank, noted that the steep fall mirrors a familiar pattern, hinting that a dash for profit was inevitable.

    Questions & Answers

    What is the current trend in the gold market in Sydney?
    A significant surge in gold buying has been observed in Sydney, partly due to its traditional status as a safe-haven asset during times of global uncertainty.

    What challenges are buyers facing in securing gold?
    Buyers are enduring long queues at gold bullion stores and even online pre-purchasers are facing waiting times. The high demand has resulted in extended trading hours and increased staffing at stores.

    What are the potential risks in the current gold market?
    Experts caution that the current trend could indicate a speculative market potentially at risk of a correction. The sharp fall in gold prices on October 22 supports this cautionary stance.

  • Vietnam’s Gold Prices Buck Global Trend With Slight Increase Amid Overall Market Decline

    Vietnam’s Gold Prices Buck Global Trend With Slight Increase Amid Overall Market Decline

    Despite a global decline, the price of gold bars in Vietnam saw a slight increase last Saturday morning. The Saigon Jewelry Company reported a 0.47% rise in the price per tael of their gold bars, reaching VND149.2 million (US$5,671.93).

    Simultaneously, the cost of a gold ring also experienced a 0.47% surge, rising to VND148.6 million per tael. For context, one tael is equivalent to 37.5 grams or 1.2 ounces.

    Yearly Bullion Surge in Vietnam

    This year, there has been a notable increase in the value of bullion in Vietnam, with a growth rate of 77%.

    Global Gold Prices

    On the global stage, gold prices experienced a slight recovery on Friday. This recovery occurred after U.S. inflation data was slightly below expectations. This data reinforces the anticipation of a Federal Reserve interest rate cut in the following week. However, despite this minor recovery, gold is still believed to be on track for its first weekly loss in a ten week period.

    Spot gold experienced a decrease of 0.2%, falling to $4,118.29 per ounce, after an earlier decline of nearly 2% in the same session. Across the week, the price of spot gold fell by over 3%.

    Independent metals trader Tai Wong gave his insights, stating, “Gold and silver experienced an increase following the lower than expected September core CPI. However, this is likely insufficient to completely counteract this week’s selloff. The price action suggests that gold, and particularly silver, may require another downward leg before stabilization.”

    This year also saw a global increase in the value of bullion, with a growth rate of 55%. This rise has been attributed to various factors including geopolitical and trade tensions, substantial central bank buying, and expectations of U.S. interest rate cuts.

    Questions & Answers

    What was the price increase of gold in Vietnam?
    The price of gold bars in Vietnam increased by 0.47%, with the price per tael reaching VND149.2 million (US$5,671.93).

    How did the global gold prices fare last week?
    Despite a slight recovery after lower than expected U.S. inflation data, gold was still on track for its first weekly loss in ten weeks.

    Why has the global value of bullion increased this year?
    The global surge in the value of bullion is attributable to several factors including geopolitical and trade tensions, robust central bank buying, and expectations of U.S. interest rate cuts.

  • Gold Prices Plunge In Record Daily Drop: Market Volatility And Increased Dollar Index To Blame

    Gold Prices Plunge In Record Daily Drop: Market Volatility And Increased Dollar Index To Blame

    In a shocking turn of events, gold prices experienced their most significant daily drop in five years, resulting from investors cashing in their gains after the precious metal reached an unrivaled high in the preceding trading session. On Tuesday, spot gold fell by 5.5% to a one-week low of US$4,115.26 per ounce, marking its steepest decline since August 2020. Meanwhile, U.S. gold futures for December saw a slightly steeper dip, settling 5.7% lower at $4,109.10 per ounce.

    A Year of Substantial Gains

    After reaching a record-breaking peak of $4,381.21 on Monday, gold prices have seen an approximate 60% increase over the year. This impressive surge is primarily attributed to factors such as geopolitical instability, economic uncertainty, predictions of interest rate cuts, and continued purchasing by central banks.

    Independent metals trader, Tai Wong, remarked on the recent fluctuations in gold prices. “As recently as yesterday, gold dips were being purchased,” he said. “But the sharp increase in volatility at the highs over the past week is a warning sign that may prompt some short-term profit-taking.”

    A rise of 0.4% in the dollar index also played a role in this situation, as it made gold a more expensive investment for individuals holding other currencies.

    Other Factors at Play

    Senior analyst at Kitco Metals, Jim Wyckoff, highlighted the impact of improved risk appetite in the marketplace on precious metals. He noted, “The better risk appetite observed in the general marketplace earlier this week is bearish for safe-haven metals.”

    Further, Citi analysts projected that the resolution of the ongoing U.S. government shutdown and upcoming announcements regarding the U.S.-China trade deal could lead to the stabilization of gold prices in the coming two to three weeks.

    In the same vein as gold, spot silver also experienced a significant dip, falling by 7.6% to $48.49 per ounce. Wong provided his insights on the matter, stating, “Silver is stumbling badly today and has dragged the entire complex lower. It seems we have a short-term peak at $54, and while sentiment wobbles under $50, silver is likely to trade sideways with substantial volatility as long as gold remains relatively firm.”

    Other precious metals such as platinum and palladium also showed a decrease in value, shedding 5.9% and 5.3% respectively.

    Looking Forward

    As we approach the end of the week, traders eagerly anticipate the release of the U.S. consumer price index report for September, previously delayed due to the U.S. government shutdown. Predictions suggest a year-on-year rise of 3.1%.

    Furthermore, market expectations lean towards a 25 basis point cut in interest rates by the Federal Reserve at its policy meeting next week. As a non-yielding asset, gold typically profits in a low-interest-rate environment.

    Questions & Answers

    What was the recent record high for gold prices?
    The record high for gold prices was $4,381.21 per ounce, reached on Monday.

    What are the main factors contributing to the surge in gold prices this year?
    The surge in gold prices this year can be attributed to geopolitical and economic uncertainty, rate-cut predictions, and sustained central bank buying.

    How does the dollar index affect gold prices?
    An increase in the dollar index makes gold more expensive for holders of other currencies, potentially impacting demand and therefore gold prices.

  • Vietnamese Gold Bar Prices Climb Amid Global Market Fluctuations And Anticipation Of Us Interest Rate Cuts

    Vietnamese Gold Bar Prices Climb Amid Global Market Fluctuations And Anticipation Of Us Interest Rate Cuts

    Vietnamese gold bar rates experienced a climb on Monday morning, following a decrease over the weekend. Saigon Jewelry Company, a notable gold bar trader in the region, saw prices rise by 0.33%, bringing their rates up to VND151.5 million (US$5,750.62) per tael after their 1.31% fall over the weekend. Similarly, Asia Commercial Bank-branded bullion also saw its prices on par with the rates of Saigon Jewelry Company.

    Domestic gold bar prices now stand at VND15.5 million per tael higher than global rates. Meanwhile, the price for gold rings remained steady, circling around VND150.2 million per tael. Here, a tael is the equivalent of 37.5 grams or 1.2 ounces.

    Global Gold Market Trends

    In the global market, gold prices saw a slight ascent on Monday, influenced by the probability of more U.S. interest rate reductions. Investors with their eyes on the gold market are currently waiting for the release of U.S. inflation data along with the U.S.-China trade negotiations for further cues on market direction this week.

    Spot gold had an uptick of 0.1%, standing at $4,253.33 per ounce, while U.S. gold futures for December delivery saw an increase of 1.3%, adjusting to $4,266.30 per ounce.

    Spot silver experienced a rise of 0.5% to reach $52.12 per ounce. This came after prices took a 4.4% fall on Friday, marking their worst session since early April, despite hitting a record peak of $54.47 earlier that day.

    Kyle Rodda, a market analyst from Capital.com, remarked, “The gold market is trying to find its footing after Friday’s selloff. Sentiment is normalizing, cooling down a bit, after a few weeks of mania.” Gold experienced about a 1.8% plunge on Friday, marking the steepest fall since mid-May, following U.S. President Donald Trump’s statement that his proposed 100% tariff on goods from China would not be sustainable.

    Questions & Answers

    Why did the gold bar prices in Vietnam increase on Monday?
    The increase in gold bar prices on Monday followed a decline over the weekend. This is a common market fluctuation.

    How are global gold prices performing?
    Global gold prices saw a slight increase on Monday, influenced by the potential for more U.S. interest rate cuts. Investors are also waiting on U.S. inflation data and U.S.-China trade discussions for further market direction.

    What caused the drop in gold prices on Friday?
    Gold prices fell after a statement from U.S. President Donald Trump suggested that his proposed 100% tariff on goods from China would not be sustainable, leading to market uncertainty.

  • Unprecedented Gold Rush Grips Vietnam Amid Soaring Global Prices

    Unprecedented Gold Rush Grips Vietnam Amid Soaring Global Prices

    For five straight days, Hoai, a 38-year-old self-employed individual, has been among the throng of hopeful buyers outside a Hanoi gold shop on Tran Nhan Tong Street. The majority of these people, much like Hoai, end up leaving without any gold in their hands.

    The Pursuit of Gold

    Hoai, who has some liquid savings, is attempting to safeguard her wealth through gold investment. The low returns offered by bank deposit rates have led her to this choice. Customers are permitted to buy only a single mace of gold at a time, which equals one-tenth of a tael or 3.75 grams. Despite the small quantity, Hoai is determined to endure the extensive waiting hours or even days to secure gold as an asset.

    In a similar situation is Thu Ha, a 26-year-old office worker in Hanoi. She withdrew half of her savings, totalling VND300 million (US$11,388), to invest in gold. Last month, she succeeded in buying five maces when the price was around VND130 million per tael. Now, she starts queuing as early as 4 a.m. every day in the hopes of purchasing more. However, the shortage of supply has left her with nothing. Some stores have even started issuing appointment slips, promising delivery within 7-10 days.

    Lan, a 43-year-old woman, took a day off from work to queue for her elderly mother. Her mother had been trying to buy gold with her pension without success. Lan decided to step in and help.

    The Gold Rush

    Gold shops across Hanoi and Ho Chi Minh City are currently witnessing unprecedented demand as prices soar to record highs. A tael of gold bar is now trading around VND153 million while gold rings range between VND153–160 million, representing an 80% increase since the start of the year.

    The rush has led to some interesting dynamics. Some people are making money by standing in queues on behalf of others. Most shops run out of stock by noon, with both bars and rings disappearing from the shelves. Customers are advised to return the next morning, but there are no guarantees of availability.

    In Ho Chi Minh City, the Saigon Jewelry Company outlet on Nguyen Thi Minh Khai Street had to stop taking orders for gold rings by midday Friday, limiting sales to just 3 maces per person.

    Global Gold Frenzy

    According to Huynh Trung Khanh, Vice President of the Vietnam Gold Trading Association, the gold-buying frenzy is not exclusive to Vietnam. People in other countries, including South Korea, are also rushing to buy gold as global prices have crossed US$4,300 per ounce.

    The State Bank of Vietnam, however, has warned buyers about the volatility of gold as an investment and advocated for prudence. The bank attributes the sharp domestic price increase to escalating global rates, public anticipation of further hikes, and limited local supply.

    Questions & Answers

    What is causing the gold-buying frenzy in Vietnam?
    The rush to buy gold is being driven by low bank deposit rates, soaring gold prices, and the desire to secure wealth.

    Are other countries experiencing a similar gold-buying frenzy?
    Yes, this is not unique to Vietnam. Countries like South Korea are also witnessing a rush to buy gold due to the increase in global prices.

    What has been the response of the State Bank of Vietnam to this situation?
    The State Bank of Vietnam has urged buyers to act prudently, given the volatility of gold as an investment. It attributes the rise in domestic prices to surging global rates, public anticipation of further increases, and limited local supply.