Gold price jumps, market "excited", China continues to accumulate

Gold price today, June 10, 2023 continued to increase thanks to the weakening of the USD and negative data from the world's largest economy.

LIVE UPDATE TABLE OF GOLD PRICE TODAY 6/10 AND EXCHANGE RATE TODAY 6/10

1. SJC - Updated: 06/09/2023 08:42 - Website time of supply source - ▼ / ▲ Compared to yesterday.
Type	Buy	Sell
SJC 1L, 10L	66,500 ▲100K	67,100 ▲100K
SJC 5c	66,500 ▲100K	67,120 ▲100K
SJC 2c, 1c, 5c	66,500 ▲100K	67,130 ▲100K
SJC 99.99 gold ring 1 chi, 2 chi, 5 chi	55,600 ▲150K	56,550 ▲150K
SJC 99.99 gold ring 0.5 chi	55,600 ▲150K	56,650 ▲150K
Jewelry 99.99%	55,450 ▲150K	56,150 ▲150K
Jewelry 99%	54,394 ▲148K	55,594 ▲148K
Jewelry 68%	36,336 ▲102K	38,336 ▲102K
Jewelry 41.7%	21,567 ▲63K	23,567 ▲63K

World gold prices increased sharply by nearly 20 USD in the trading session on June 9 thanks to the weakening of the USD. The US Dollar Index was at 103.375 points, which increased the attractiveness of gold to buyers holding other currencies.

Gold prices also rose after new data showed the number of Americans filing new unemployment claims rose last week, an indicator of a weakening labor market and a sign that the risk of the US economy falling into recession has increased.

According to TG&VN at 7:30 p.m. on June 9, the world gold price on the Kitco exchange was at 1,965.2 - 1,966.2 USD/ounce, up 0.6 USD compared to the previous trading session.

Many people are expecting the US Federal Reserve (Fed) to stop raising interest rates. Many forecasts say that the Fed will also consider before stopping raising interest rates.

US consumer price index (CPI) data due out next week will provide further signals on the economy and could influence future Fed interest rate decisions.

Economists surveyed by Reuters said the Fed will pause interest rate hikes for the first time in more than a year at its meeting next week.

In the Asian market, gold prices fell in the afternoon trading session on June 9 after rising more than 1% in the previous session, although hopes of the possibility of a pause in the Fed's interest rate hike helped the precious metal towards a weekly gain.

Spot gold fell 0.2% to $1,964.59 an ounce by 2 p.m. (GMT+8) but was still on track for a nearly 1% weekly gain. U.S. gold futures were steady at $1,979.70 an ounce.

Giá vàng hôm nay 10/6/2023: Giá vàng 'phấn chấn' bật tăng, Trung Quốc tăng mua kim loại quý để làm gì?

Gold price today June 10, 2023: Gold price increases, market 'excited', China continues to accumulate. (Source: FXStreet)

Domestic gold prices also increased slightly following the increase in world gold prices. At the end of the trading session on June 9, Saigon Jewelry Company listed the price of SJC gold in the Hanoi market at 66.50-67.12 million VND/tael (buy-sell).

Summary of SJC gold prices at major domestic trading brands at the closing time of the trading session on June 9:

Saigon Jewelry Company listed the price of SJC gold at 66.50 - 67.10 million VND/tael.

Doji Group currently lists the price of SJC gold at: 66.45 - 67.05 million VND/tael.

Phu Quy Group listed at: 66.45 - 67.05 million VND/tael.

PNJ system listed at: 66.45 - 67.00 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at: 66.50 - 67.04 million VND/tael; Rong Thang Long gold brand is traded at 55.48 - 56.33 million VND/tael; jewelry gold price is traded at 55.15 - 56.15 million VND/tael.

Good opportunity for gold is coming

The jobless claims data suggests the economy is weakening, which is good news for gold because the weakening economy will allow the Fed to pause on raising interest rates, said Edward Moya, senior analyst at Oanda.

"If inflation continues to fall, if the Fed keeps interest rates unchanged and does not send a strong signal about raising interest rates at its July meeting, it will be a good opportunity for gold prices to increase further," the expert said.

David Meger, director of precious metals trading at High Ridege Futures, said that inflation remains the top concern for investors. At this point, the market is expecting the Fed to stop raising interest rates. However, if inflation numbers remain high, those expectations could shift again.

Gold is an asset that is highly sensitive to interest rates, especially US interest rates, because rising interest rates increase the opportunity cost of holding gold, while US interest rates affect global interest rates.

In addition, US interest rates also affect gold prices through their impact on the USD exchange rate, as gold is priced in USD.

Bloomberg News reported that the high demand for central bank gold shows no signs of abating as China continued to accumulate more of the metal in May 2023, extending its purchases to the seventh consecutive month.

The People's Bank of China, China's central bank, bought 16 tons of gold for its reserves in May, continuing a trend that began last November. In the previous six months, China bought 144 tons of gold and has now accumulated 2,092 tons.

China is not the only country increasing its demand for this precious metal.

The World Gold Council (WGC) previously reported a surge in purchases last year. In the first quarter of this year alone, central banks bought 228.4 tonnes of gold, a new quarterly record. The buildup of the metal reflects a growing shift away from the US dollar as a reserve currency.

According to a WGC survey in May, half of central banks expect the share of dollar reserves to continue to decline, to 40-50% over the next five years. Meanwhile, gold reserves are forecast to increase over the same period.

The same survey found that a quarter of central banks intend to add to their gold holdings next year.

According to data from the People's Bank of China, as of the end of May 2023, China had $3.18 trillion in foreign exchange reserves, compared with $3.20 trillion in April. In the first quarter of 2023, China was also the second largest buyer of gold, after Singapore.

Source