LIVE UPDATE TABLE OF GOLD PRICE TODAY 8/2 and EXCHANGE RATE TODAY 8/2

[WIDGET_GOLD_RATE:::SJC:]

Update gold price today 8/2/2024

World gold prices skyrocketed due to geopolitical instability in the Middle East and new US economic data.

Gold prices jumped by about $30 compared to the same time in the previous session, rising above $2,420/ounce, amid a rapid decline in the USD and immediate decline in US bond yields after the US announced disappointing employment data.

The US Federal Reserve (Fed) decided to keep interest rates unchanged after concluding a two-day policy meeting (July 30-31), considering inflation as less of a threat to the US economy. The Fed announced that a rate cut would be discussed in September 2024.

For the latest monetary policy decision of the Fed, the gold market is currently not seeing much reaction. According to the World & Vietnam Newspaper , at 6:00 p.m. on August 1, the world gold price traded on the Kitco electronic floor at $2,434.80 an ounce, down $13.1 from the previous session. August gold futures were trading at $2,420.60 an ounce, up 0.65% on the day.

As expected, the Fed kept its benchmark interest rate unchanged in a range of 5.25% to 5.50%. The Fed's monetary policy statement was largely unchanged, reiterating that risks to the economy are balanced. However, there was a small adjustment as the US central bank shifted its focus away from inflation. "The Fed assesses that risks to achieving its maximum employment and inflation goals have moved toward a more balanced position. The economic outlook remains uncertain, but the Fed is mindful of risks on both sides of its dual mandate," the statement said. In June, the Fed said one of its focuses was inflation risks.

Thus, there are more signs that the US economy is less positive. This is a factor that may force the Fed to have a plan to loosen monetary policy at a faster pace to ensure that the world's number 1 economy does not fall into recession in the future.

At present, geopolitical instability in the Middle East with new developments has made the market more worried. In the longer term, some forecasts say that whichever candidate, Mr. Donald Trump or Ms. Kamala Harris becomes the US president, the new White House owner will also increase money pumping to support the economy. Gold will benefit from this move.

Russia-Ukraine conflict: Statistics of 8 massive sanctions packages from the EU, Russia's energy, banking and arms industry are 'targeted'. (Source: TASS)

Domestic gold prices increased sharply following world trends.

The price of SJC gold bars increased by nearly 1 million, to nearly 80 million VND/tael (selling) after the State Bank announced a new price on the morning of August 1.

Saigon Jewelry Company closed August 1 listing the price of gold bars at 77.80 - 79.80 million VND/tael, an increase of 800 thousand VND in both buying and selling directions.

Doji Group also listed the price of gold bars at 77,800 - 79,800 million VND/tael, an increase of 800 thousand VND in both buying and selling directions.

Bao Tin Minh Chau Company is also currently listing the price of gold bars at 77,800 - 79,800 million VND/tael.

Banks are now adding more conditions for buying gold bars. Vietcombank and BIDV have announced changes to their gold bar registration policies, selling only to customers who have opened accounts at the bank. This change is explained as aiming to improve service quality and manage customer information, as well as develop non-cash payments.

The price of 9999 plain round gold rings increased to over 77.6 million VND. The price of gold rings on August 1 is currently more than 2 million VND higher than the price of gold bars.

Currently, Saigon Jewelry Company (SJC) listed the price of gold rings of type 1-5 at only 76.3-77.65 million VND/tael, an increase of 350 thousand VND per tael in both buying and selling compared to the closing price of yesterday's trading session.

Doji Group raised the price of 9999 round smooth gold rings to 76.45 - 77.65 million VND/tael, an increase of 350 thousand VND/tael in both buying and selling compared to yesterday's closing price.

The price of Bao Tin Minh Chau gold rings, brand of Rong Thang Long gold, is fixed at 75.70 million VND/tael (buy) and 77.40 million VND/tael (sell).

Africa increases gold reserves for this reason

Geopolitical tensions and risks related to the US dollar have prompted many African countries to increase their gold reserves. Nigeria, Uganda, Zimbabwe, Madagascar and several other African countries have moved to increase their gold reserves and even guarantee gold for their local currencies.

South Sudan is the latest country to make the move. Last week, the country’s central bank governor said he planned to boost the country’s gold reserves.

Earlier this month, the Central Bank of Uganda announced a domestic gold purchase program that will see the bank buy gold directly from local artisanal miners to help “address risks in international financial markets.”

In June, Tanzania announced plans to spend $400 million to buy six tons of gold. Tanzania’s Finance Minister Dr. Mwigulu Nchemba also issued a directive to curb the widespread use of the U.S. dollar in the country.

Nigeria has also launched a plan to buy gold domestically to boost its reserves. In addition to buying locally sourced gold, the central bank of Nigeria has also expressed its intention to repatriate its existing gold reserves “to mitigate risks associated with the US economy.” Economic indicators such as inflation, debt overhang and geopolitical tensions have Nigerian policymakers concerned about the stability of the US financial system.

Earlier this year, Zimbabwe created a gold-backed currency, called the ZiG, to replace the Zimbabwean dollar. The currency is primarily backed by gold, but is also backed by other foreign exchange reserves including the US dollar.

Meanwhile, a presidential candidate in Ghana recently said he would back the country’s currency with gold if he wins. “Our ultimate goal is to back the local currency with gold.”

“Central banks can add gold to official reserves using local currencies, allowing them to increase reserve assets without sacrificing other hard currency reserves,” said one analyst.

To some extent, African leaders and central banks are trying to address the problems they created by printing so much money and borrowing so much in dollars. But they are also concerned about the weaponization of the dollar by the United States and other risks associated with the greenback, including excessive spending and rising national debt.

“For countries that think the price of gold will increase, or the price of the US dollar will decrease, or their access to the US dollar may be affected by sanctions, it makes sense to increase their gold reserves,” said an emerging markets expert at Tellimer (Dubai).