Gold price suddenly jumps, US economic recession is approaching, gold price forecast "split"

Gold prices today, August 28, 2023, are at a two-week high, but are still 6% lower than this year's high. Investors expect prices to rise, but analysts are still very cautious about gold price forecasts this week.

LIVE UPDATE TABLE OF GOLD PRICE TODAY 8/28 and EXCHANGE RATE TODAY 8/28

1. PNJ - Updated: August 28, 2023 02:30 - Website supply time - ▼ / ▲ Compared to yesterday.
Type	Buy	Sell
HCMC - PNJ	56,100	57,100
HCMC - SJC	67,300	67,950
Hanoi - PNJ	56,100	57,100
Hanoi - SJC	67,300	67,950
Da Nang - PNJ	56,100	57,100
Da Nang - SJC	67,300	67,950
Western Region - PNJ	56,100	57,100
Western Region - SJC	67,600	68,050
Jewelry gold price - PNJ rings (24K)	56,100	57,000
Jewelry Gold Price - 24K Jewelry	55,900	56,700
Jewelry Gold Price - 18K Jewelry	41,280	42,680
Jewelry Gold Price - 14K Jewelry	31,920	33,320
Jewelry Gold Price - 10K Jewelry	22,340	23,740

The world gold price closed the last trading week (August 25) on Kitco at 1,915.8 USD/ounce, increasing sharply last week after 4 consecutive weeks of decline.

Most retail investors expect gold prices to rise in the week ending September 1, according to the latest Kitco News weekly gold survey.

Meanwhile, market analysts remain cautious and evenly divided in their predictions as they enter the final week of August.

Gold prices rose more than 1.3% this week, as US Federal Reserve Chairman Jerome Powell signaled further interest rate hikes this year. At the central bank symposium in Jackson Hole, the head of the Fed made it clear that it would maintain its 2% inflation target and not seek to cut interest rates anytime soon.

Adrian Day, chairman of Adrian Day Asset Management, predicts that gold prices will fall this week. However, he said he does not expect the disappointment to last too long, “as we move closer to a recession in the US and a pause in Fed rate hikes before inflation takes a beating.”

Meanwhile, James Stanley, senior market strategist at Forex.com , said that the precious metal will continue to rise next week. According to Stanley, “gold prices have been surprisingly strong even with the strength of the US dollar this week, and the culprit for that is the weakness of the Euro.

Gold price today August 28, 2023: Gold price suddenly jumped, US economic recession is approaching, analysts are 'divided' on the direction of gold? (Source: Kitco)

The domestic gold price, SJC gold, exceeded 68 million VND, an increase of 150,000 VND in the last trading session of the week (August 25) and 500,000 VND higher than a week ago. The domestic price of precious metals has been increasing steadily for about a week now.

In the past 4 months, domestic gold prices have remained stable despite fluctuations in the world, sometimes even exceeding 2,000 USD/ounce. However, domestic gold prices have recently undergone stronger adjustments.

If converted according to the USD exchange rate at Vietcombank, the world gold price is equivalent to 55.93 million VND per tael, 12.1 million VND lower than the domestic price.

Summary of SJC gold prices at major domestic trading brands at the closing time of the last weekend session, August 26:

Saigon Jewelry Company listed the price of SJC gold at 67.35 - 68.05 million VND/tael.

Doji Group currently lists the price of SJC gold at: 67.2 - 68.1 million VND/tael.

PNJ system listed at: 67.3 - 67.95 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at: 67.45 - 67.98 million VND/tael; Rong Thang Long gold brand is traded at 56.13 - 56.98 million VND/tael; jewelry gold price is traded at 55.60 - 56.80 million VND/tael.

Domestically, the USD/VND exchange rate is in a short-term increase, with the USD price at banks and on the black market trading around 24,000 VND/1 USD.

Converted according to the USD price at Vietcombank on August 26, 1 USD = 24,150 VND, the world gold price is equivalent to 55.74 million VND/tael, 12.31 million VND/tael lower than the selling price of SJC gold.

Gold price forecast this week

The latest survey showed that retail investors expect gold prices to trade around $1,941 an ounce this week.

In the coming days, a series of important economic data from the world's largest economy will be released, including job openings and non-farm payrolls, giving the market a deeper look at the US employment picture. Revised second-quarter GDP will also be released, along with PCE and ISM manufacturing, which will help investors confirm the trajectory of the Fed's interest rate, as the agency tries to balance inflation and growth risks.

Marc Chandler, CEO of Bannockburn Global Forex, sees gold rising next week. “I like gold higher next week as the good news on the dollar is known and a weak jobs report at the end of next week could encourage the idea that interest rates have peaked or are close to it.”

Chandler also sees an improving technical picture. “I think gold has the potential to move back into the $1,930-$40 area.”

Phillip Streible, chief market strategist at Blue Line Futures, is bearish on the yellow metal. “The market is still in a fairly solid downtrend. Gold needs to break above $1,971 to turn neutral, but the global gold price can’t even break above the resistance at $1,951,” Streible said.

Kitco’s Jim Wyckoff also sees gold prices continuing to fall. “Steady lower as the downtrend remains in place on the daily volume chart.”

But Adam Button, chief currency analyst at Forexlive.com , says the tide is turning for gold. It's becoming increasingly clear that central bank rate hikes are over... Well, by the end of the year, the market will be waiting for a rate cut and that's when gold starts to rally. It's still early days, but it's time to dip your toes in gold.

A Bloomberg survey of investors including sovereign wealth managers and hedge funds showed that they did not reduce their gold holdings but planned to maintain or increase them over the next 12 months.

Some believe that gold prices will rise when the US economy "soft lands" instead of entering a recession as previously predicted. Investors are still watching the end of the Fed's monetary tightening period, an important signal affecting gold prices.

Source