Market Highlight 17.07.2024

Global gold prices set a new record high last night at 2.469,66 USD per ounce, driven by expectations that the FED might implement three rate cuts by the end of this year and the potential victory of candidate Donald Trump in the upcoming U.S. presidential election in November. The precious metal has surged nearly 20% this year, supported by strong reserve purchases from major central banks, particularly China, and robust consumer demand. The outlook for gold prices is expected to remain positive amid current geopolitical and macroeconomic tensions, with central bank demand staying high. The target price for 2025 is forecasted to range between 2.700 USD and 3000 USD per ounce.

The USD Index rose by more than 0,2% to nearly 104,5 points last night after U.S. retail sales data for June exceeded expectations, reaching the highest level in three months. This unexpected result contrasts with the recent trend of slowing consumer growth due to high interest rates and a stagnating labor market. This data indicates that the world's largest economy remains resilient as the FED prepares to begin cutting interest rates. Additionally, data showing unchanged import prices in June, with rising food prices offset by lower energy prices, gives the FED further reasons to cut rates this year.

The USD/VND interbank exchange rate slightly recovered by about 5 Dong yesterday after a significant drop of nearly 45 Dong on Monday. The demand for foreign currency in the market was relatively balanced, and the USD showed signs of recovery in the global market after nearly three weeks of continuous decline. The central exchange rate set by the SBV remained unchanged at 24.245 for the second consecutive day, corresponding to the current effective ceiling rate of 25.457.

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Directly contact us to receive market news and consultancy on foreign exchange products and derivatives:

- Financial Markets Division – Email: ktttc@acb.com.vn ; or

- Mr. Khanh Hoang (Financial Markets Senior Analyst) – Email: hoangnk@acb.com.vn