Gold prices are "supported", Russia is sanctioned, alerting countries to rush to move gold reserves... home

Gold prices today, July 12, 2023, increased as they received support from external factors, especially the USD. However, it is also being affected by disappointing inflation data, which could lead to the Fed reassessing its policy, following a trend of monetary tightening, and that reduces the attractiveness of gold.

LIVE UPDATE TABLE OF GOLD PRICE TODAY 7/12 and EXCHANGE RATE TODAY 7/12

1. SJC - Updated: 11/07/2023 15:41 - Website time of supply source - ▼ / ▲ Compared to yesterday.
Type	Buy	Sell
SJC 1L, 10L	66,600	67,200
SJC 5c	66,600	67,220
SJC 2c, 1c, 5c	66,600	67,230
SJC 99.99 gold ring 1 chi, 2 chi, 5 chi	55,500	56,500
SJC 99.99 gold ring 0.5 chi	55,500	56,600
Jewelry 99.99%	55,400	56,100
Jewelry 99%	54,345	55,545
Jewelry 68%	36,302	38,302
Jewelry 41.7%	21,546	23,546

The world gold price increased thanks to the "support", including the weakening of the USD. However, the increase was hindered by cautious investors, hesitant before the upcoming US inflation data (July 12) - predicted to affect the financial policy roadmap of the US Federal Reserve (Fed).

According to TG&VN at 9:30 p.m. on July 11 (Vietnam time), the gold price traded on Kitco floor was at 1,934.4 USD/ounce, up 9.3 USD compared to the previous trading session. The last time, the gold price traded in August increased by 11.60 USD to 1,942.60 USD/ounce.

The USDX Index fell to a near two-month low. A weaker dollar is supporting the precious metal as the Fed appears to be signaling that it is at the end of its tightening cycle. A weaker dollar also makes gold more attractive to buyers holding other currencies.

Some Fed officials have said the U.S. may still need to raise interest rates to cool inflation, but it is nearing the end of its tightening cycle. According to CME's Fedwatch tool, investors see a 92% chance that the Fed will raise rates at its July 2023 meeting to a range of 5.25%-5.5% and then maintain them through 2024. Higher interest rates reduce the appeal of non-yielding assets like gold.

Gold price today July 12, 2023: Gold price's rise is stopped, Russia is sanctioned, alerting countries to rush to move gold reserves... home. (Source: Kitco)

The market's reaction to the US inflation data depends on how quickly it slows, said UBS analyst Giovanni Staunovo . "Only if inflation surprises lower will gold benefit, as that would suggest the Fed's rate-hike cycle will end sooner."

Gold is a safe-haven investment that tends to increase during times of economic or financial uncertainty, while lower interest rates also increase the appeal of zero-yielding assets like gold.

Domestic gold price, SJC gold bars at the store system is adjusted to increase by about 50,000 - 100,000 VND/tael.

The price of jewelry gold has increased steadily and continuously since July 7, rising sharply, 200,000 VND/tael higher than yesterday. From the close of the session on July 7 to today, the price of SJC 9999 gold has increased by 450,000 VND/tael in both buying and selling prices. Doji 's jewelry gold price has also increased by 250,000 VND/tael in buying prices and increased by 400,000 VND/tael in selling prices. The difference between buying and selling prices of jewelry gold has widened to around 1-1.55 million VND/tael.

Summary of SJC gold prices at major domestic trading brands at the closing time of trading session on July 11.

Saigon Jewelry Company listed the price of SJC gold at 66.60 - 67.22 million VND/tael.

Doji Group currently lists the price of SJC gold at: 66.45 - 67.10 million VND/tael.

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

PNJ system listed at: 66.55 - 67.10 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at: 66.62 - 67.18 million VND/tael; Rong Thang Long gold brand is traded at 55.79 - 56.69 million VND/tael; jewelry gold price is traded at 55.20 - 56.40 million VND/tael.

The trend of "repatriating" gold

After the conflict in Ukraine, Russia was "punished" by the US and the West with a series of restrictions and asset freezes. A series of countries then moved their gold reserves abroad to store domestically to prevent the risk of being sanctioned like Russia - an economy that owns hundreds of tons of gold and is currently frozen in Western countries, according to a survey conducted by the US investment management company Invesco.

Last year's financial market meltdown caused widespread losses for sovereign wealth funds, forcing them to review strategies amid concerns that high inflation and geopolitical tensions will persist, Invesco said in a report released on July 10.

Invesco’s survey found that central banks view gold as an inflation hedge and plan to buy more gold over the next three years. Another notable trend is that 68% of managers said they are holding gold domestically, compared to just 50% in 2020. This suggests that many central banks have repatriated gold.

A significant proportion of central banks are concerned about the precedent such sanctions have set, which would make gold more attractive, the Invesco survey found.

More than 85% of the 85 sovereign wealth funds and 57 central banks that participated in Invesco’s annual global sovereign wealth management research survey believe that inflation will be higher over the next decade than it has been in the past. In that environment, they see gold and emerging market bonds as safe haven investments. Seventy-four percent of sovereign wealth funds see high-yield emerging market bonds as attractive investments.

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