Gold price today (June 2): The world increased, the domestic decreased

Domestic gold price today

At dawn this morning, the domestic gold price reversed slightly. Currently, the domestic precious metal prices are listed as follows: 

SJC gold price in Hanoi and Da Nang area is buying at 66,4 million dong/tael and selling at 67,02 million dong/tael. In Ho Chi Minh City, SJC gold is still buying at the same level as in Hanoi and Da Nang but selling for less than 20.000 dong.

Domestic gold price this morning reversed to decrease slightly. Photo: nld.com.vn

DOJI brand gold price in Hanoi area is listed at 66,4 million VND/tael bought and 67 million VND/tael sold. In Ho Chi Minh City, this brand's gold is buying at a similar level but selling at 50.000 VND lower than in Hanoi.      

Phu Quy SJC gold price is listed at 66,4 million dong/tael bought and 67 million dong/tael sold. PNJ gold is buying at 66,5 million dong/tael and selling at 67,05 million dong/tael. Bao Tin Minh Chau Bao Tin Gold is listed at 66,42 million dong/buy-in and 66,98 million dong/sold-out. 

The domestic gold price updated at 5:30 a.m. on June 2 as follows:

World gold price today

World gold price this morning continued to recover with spot gold increasing by 14,3 USD to 1.976,7 USD/ounce. August gold futures last traded at $8 per ounce, up $1.994,4 from dawn the day before.

World precious metal prices in the early June session were boosted by the thought that the US Federal Reserve (Fed) will pause tightening monetary policy at the upcoming meeting.

The Wall Street Journal reported that the Fed is likely to pause its rate hike cycle at its June meeting, before raising rates again later this summer. That's a change from recent expectations that the Fed will raise rates again at its June meeting.

Currently, traders are waiting for the US Department of Labor's employment report for May on Friday morning (US time). The key nonfarm payrolls figure is forecast to rise to 5 from April's nonfarm payrolls figure to 6.  

The gold market is seeing a solid recovery from Tuesday's drop to a two-month low. In an interview with Kitco News, head of commodity strategy Ole Hansen at Saxo Bank said gold's three-week correction is over and the market is on track to move back above $3 an ounce even as weak commodity prices signal growing recession fears.

Hansen's upbeat outlook for gold comes as the Bloomberg commodity index has fallen 13% this year, led by silver, copper and oil. Meanwhile, the price of gold has increased by nearly 6%, last trading at $1.976,7 an ounce.

Hansen said that while weak commodity prices could ease inflationary pressures in the near term, fresh safe-haven demand remains the driving force for gold.

“Commodities are struggling because of the economic outlook,” he said. If the economy is as bad as commodities are pricing in, then the Fed can't raise rates indefinitely. In this environment, the price of gold could easily return to the $2.000/ounce level. We are not yet out of our predicament. A return to $2.000 will definitely improve sentiment.”  

Gold in the world this morning continued to increase. Photo: Kitco

Although gold prices have struggled to hold on to gains over the past three weeks, Hansen thinks a correction is inevitable. He added that gold investors are going against the Fed as they price in a significant rate cut later in the summer.

He added that gold's drop to a two-month low has brought the market back in line with interest rate expectations; however, he also added that the idea of ​​a rate cut later this year remains solid, especially if the global economy slips into recession.

"If the world falls into a recession, the Fed will react quickly and aggressively cut rates," Hansen added. That's basically good news for assets that benefit from lower interest rates, he said. 

Looking ahead to the June monetary policy meeting, the market sees a more than 6% chance that the Fed will raise interest rates by 66 basis points; Meanwhile, the market also forecast interest rates to fall back to 25% by the end of this year.

Along with gold's renewed upside potential, Hansen said he remains a long-term bull in the precious metal. Inflation is falling, he explained, but it is unlikely to fall to the central bank's 2% target.

He said persistently high and persistent inflation would eventually force the Fed to raise its inflation target to 3% or 4%, which would have a strong impact on real interest rates, supporting the precious metal's long-term rally. .

With the domestic gold price falling slightly and the world gold price listed at Kitco at 1.976,7 USD/ounce (equivalent to nearly 56,4 million dong/tael if converted at Vietcombank exchange rate, excluding taxes and fees), the difference The difference between domestic and world gold prices is currently nearly 11 million VND/tael.            

TRAN HOAI