LIVE UPDATE TABLE OF GOLD PRICE TODAY 7/2 and EXCHANGE RATE TODAY 7/2
[WIDGET_GOLD_RATE:::SJC:]
World gold prices and domestic gold prices fluctuated this week.
Although analysts warned that the option of continuing to raise interest rates could be quite negative for gold in the coming time, domestic gold prices on the morning of June 26 tended to increase. At the opening of the trading session, SJC gold prices in the Hanoi market were listed by Saigon Jewelry Company at 66.55 - 67.12 million VND/tael (buy - sell), an increase of 50 thousand VND/tael in both buying and selling compared to the closing price at the end of last week.
In the 3 sessions of the week of decreasing and remaining unchanged, on the morning of June 30, the price of SJC gold in the Hanoi market was listed by Saigon Jewelry Company at 66.45 - 67.07 million VND/tael (buy - sell), unchanged from the closing price yesterday.
At the end of the week on July 1, the domestic gold price was listed by Saigon Jewelry Company at 66.35 - 67.05 million VND/tael.
Thus, compared to the first session of the week on June 26 (at 66.55 - 67.12 million VND/tael), the price of SJC gold in the Hanoi market listed by Saigon Jewelry Company decreased by 200,000 VND/tael for buying and decreased by 70,000 VND/tael for selling.
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| Gold price today July 2, 2023, Gold price saves itself, no sudden reaction, precious metal will still sparkle, SJC gold decreases. (Source:shutterstock) |
In the world market, although it increased in the first trading session of this week, the consecutive declines that followed made the world gold price witness a gloomy week, and at the same time closed the first quarter of decline in the past three quarters. The gold market was restrained by the prospect of more interest rate hikes in the US, although signs of improving US inflation provided some support for gold prices in the last trading session of the week.
At the close of the week on June 30, spot gold rose 0.5% to $1,917.94 an ounce. Meanwhile, gold futures rose 0.6% to $1,929.40 an ounce. According to Dow Jones Market data, gold futures fell slightly by 20 cents last week and were down 2.7% for the month of June.
According to the World & Vietnam , the world gold price closed the trading week (June 30) on the Kitco floor at 1,920.8 USD/ounce.
Summary of SJC gold prices at major domestic trading brands at the closing time of June 30:
Saigon Jewelry Company listed the price of SJC gold at 66.35 - 67.05 million VND/tael.
Doji Group currently lists the price of SJC gold at: 66.4 - 67.0 million VND/tael.
Phu Quy Group listed at: 66.4 - 67.0 million VND/tael.
PNJ system listed at: 66.5 - 67.0 million VND/tael.
SJC gold price at Bao Tin Minh Chau is listed at: 66.37 - 66.98 million VND/tael; Rong Thang Long gold brand is traded at 55.51 - 56.36 million VND/tael; jewelry gold price is traded at 55.00 - 56.10 million VND/tael.
Converted according to the USD price at Vietcombank on July 1, 1 USD = 23,750 VND, the world gold price is equivalent to 54.96 million VND/tael, 12.09 million VND/tael lower than the selling price of SJC gold.
This is why gold prices are above $1,900/ounce
After testing the $1,900/ounce level, gold has rallied, saving itself from a significant sell-off.
Gold ended the second quarter down more than $80 an ounce, its worst performance since the third quarter of last year. But there were some positive signs. The decline in gold prices was slow and steady, not sudden and steep, and it still held the important $1,900 an ounce level.
“I’m surprised at how resilient gold has been to the moves in the US bond market,” said Chris Weston , head of research at Pepperstone. “I still question whether growth equities (such as the NAS100) will continue to move higher if US bond yields are trending higher and how that plays out.”
Federal Reserve Chairman Jerome Powell's message of at least two more interest rate hikes this year has spread throughout the market, causing gold prices to fall and pushing the US dollar higher.
But the fact that prices have not fallen below $1,900 an ounce shows the resilience of the gold market, with growing sentiment that the stock rally will not last.
“While an environment where interest rates are likely to continue to rise is not conducive to this non-yielding asset class (gold), investors remain unconvinced of the bullish case for equities, especially with some countries potentially already in recession,” said Rupert Rowling , market analyst at Kinesis Money.
What is holding the gold?
If $1,900/ounce is broken, there will be significant technical selling, said OANDA senior market analyst Edward Moya .
One reason for gold’s rally, Moya pointed out, is that the market has yet to price in two Fed rate hikes. According to the CME FedWatch Tool, there is a nearly 90% chance of a 25 basis point hike in July and a 70% chance of a pause in September.
“Is inflation going to get tougher, and is the Fed going to deliver two more rate hikes? Is that priced in? Not yet,” said Mr. Moya.
Gold is not very attractive right now, but it could have a pivotal moment as the market reassesses how aggressively the Fed will reduce inflation, Moya added.
“A Fed rate hike typically depresses gold prices. But given the market position, we could see a sell-off in equities and a strong return to safe-haven demand. That’s not an environment where gold would collapse,” he said.
Moya is predicting range-bound trading in the short term, with downside risk if gold falls below $1,900 an ounce. “If we break below that level, gold could get worse. But I don’t think that’s going to happen,” he said.
That kind of trading could be enough to keep gold from falling lower. But at the same time, significant gains are unlikely in the short term, said Bart Melek, head of global commodity strategy at TD Securities.
“At 4.6%, the US core PCE in May was slightly lower than expected and with personal spending weaker in May, the market drove yields lower. Along with that, the US dollar fell and gold bounced convincingly above $1,900 an ounce,” said Mr. Melek.
With evidence that U.S. inflation may have peaked, the gold sell-off may have run its course, said Sean Lusk , co-director of Walsh Trading. “But gold should hold this level better. It needs to hit $1,966 an ounce to turn bullish,” he said.
The precious metal will only go higher after the stock market reverses its rally. “If the stock market continues to wobble, there will be less demand for gold. Stock market rallies will increase inflation, and that will cause the Fed to continue raising interest rates, with the dollar being the winner,” he said.
The strength of the greenback is why gold is holding the key level, according to expert Lusk.
If gold falls below $1,900 an ounce, investors should look at $1,850-$1,814 an ounce. “If they can’t hold that, then a drop to $1,720 an ounce is possible. That’s a bearish scenario,” he said.
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