LIVE UPDATE TABLE OF GOLD PRICE TODAY 7/7 and EXCHANGE RATE TODAY 7/7
| 1. SJC - Updated: 07/06/2023 15:43 - Website time of supply - ▼ / ▲ Compared to yesterday. | ||
| Type | Buy | Sell |
| SJC 1L, 10L | 66,450 | 67,050 |
| SJC 5c | 66,450 | 67,070 |
| SJC 2c, 1c, 5c | 66,450 | 67,080 |
| SJC 99.99 gold ring 1 chi, 2 chi, 5 chi | 55,050 | 56,050 |
| SJC 99.99 gold ring 0.5 chi | 55,050 | 56,150 |
| Jewelry 99.99% | 54,950 | 55,650 |
| Jewelry 99% | 53,899 | 55,099 |
| Jewelry 68% | 35,996 | 37,996 |
| Jewelry 41.7% | 21,358 | 23,358 |
World gold prices fell after a strong, better-than-expected US jobs report. The newly released data showed that the number of jobs increased twice as much as the market expected. This report pushed the USD Index away from its lowest level and also pushed up US Treasury bond yields.
According to TG&VN at 9:30 p.m. on July 6 (Vietnam time), the gold price was trading at 1,928.2 USD/ounce. Last time, August gold decreased by 11.70 USD to 1,915.70 USD.
Specifically, the US June employment report showed an increase of 497,000 jobs, compared to expectations of only 220,000. The yield on the benchmark 10-year US Treasury bond rose to its highest level in nearly 4 months and is currently at 4.031%. This data strengthens the determination of the "hawks" on monetary policy - supporting the US Federal Reserve (Fed) to raise interest rates.
Meanwhile, the minutes of the Fed's latest policy meeting were released on Wednesday afternoon and they also tended to be "hawkish". Accordingly, the minutes from the June 13-14 meeting showed that most Fed officials thought that keeping the Fed's base rate at 5.0-5.25% was "appropriate and acceptable", with some favoring a 0.25% increase. The minutes also said that "nearly all" FOMC members agreed that further tightening of US monetary policy was necessary this year.
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| Gold price today July 7, 2023: Gold price fell sharply due to the Fed's stance, continued to face devaluation pressure, may return to the threshold of 1,900 USD. (Source: Kitco) |
Rising interest rates will increase the opportunity cost of holding non-yielding assets such as gold. Investors are also watching developments around China's restrictions on exports of metals vital to semiconductor production, just ahead of a visit to Beijing by U.S. Treasury Secretary Janet Yellen.
Yeap Jun Rong, a market strategist at IG , said rising tensions between the US and China could send the market into "defensive mode", thereby spurring short-term "safe haven" flows into gold.
Domestic gold prices suddenly increased slightly by about 50,000 - 100,000 VND/tael at some store systems nationwide.
Converting world gold price according to USD exchange rate at Vietcombank 1 USD = 23,870 VND, world gold price is equivalent to 55.11 million VND/tael, lower than SJC gold selling price by about 11 million VND/tael.
Summary of SJC gold prices at major domestic trading brands at the closing time of trading session on July 6.
Saigon Jewelry Company listed the price of SJC gold at 66.45 - 67.07 million VND/tael.
Doji Group currently lists SJC gold price at: 66.40 - 67.00 million VND/tael.
Phu Quy Group listed at: 66.45 - 67.05 million VND/tael.
PNJ system listed at: 66.45 - 66.95 million VND/tael.
SJC gold price at Bao Tin Minh Chau is listed at: 66.46 - 67.03 million VND/tael; Rong Thang Long gold brand is traded at 55.44 - 56.29 million VND/tael; jewelry gold price is traded at 54.95 - 56.05 million VND/tael.
Gold price could fall below $1,900/ounce?
In the international market, gold is under downward pressure as the USD exchange rate and US Treasury bond yields both increase due to expectations that the Fed will keep interest rates high for a longer period of time. The latest US labor market data also shows that the possibility of a dovish Fed will increase, thereby continuing to put downward pressure on gold prices.
However, some analysts have recently become optimistic as gold prices hold the $1,900/ounce mark amid the Fed’s projections for two more rate hikes this year. They say that if this psychologically important threshold fails to hold, a gold sell-off could occur.
In a move showing investors are cautious about the gold price outlook, the world's largest gold exchange-traded fund (ETF) SPDR Gold Trust sold a net 4 tons of gold in the session on Wednesday (July 5), reducing its holdings to 917.9 tons of gold.
Market commentary: If the $1,900/ounce mark is breached, there will be a significant technical sell-off in the gold market. One of the reasons gold is holding steady above $1,900/ounce is because the market has not yet fully priced in the possibility of two more Fed rate hikes.
“Is inflation going to be more persistent, and is the Fed going to do two more rate hikes? Is that priced in? Not yet,” said Moya. Gold is not attractive right now, he said, but could still explode if the market reassesses the Fed’s aggressiveness in fighting inflation.
“A Fed rate hike typically depresses gold prices. But given the current market position, we could see a sell-off in equities and a strong return to safe-haven demand for gold. This is not an environment where gold will collapse,” Moya said.
The veteran OANDA expert predicts that gold prices will continue to trade in a narrow range in the short term, with the risk of further declines if prices fall below $1,900 an ounce. “If gold falls below that level, the story could get worse. But I don’t think that will happen,” he said.
According to data from the CME FedWatch Tool, speculators are betting on a nearly 90% chance of the Fed raising interest rates by 25 basis points in July and a 70% chance of the Fed pausing interest rate hikes in September.
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