Gold price today June 3: Turning around and sliding downhill

World gold price this morning stood at 1947 USD/ounce, down 30 USD/ounce compared to early yesterday morning.

Precious metal prices fell sharply today as hotter-than-expected US jobs data lifted Treasury yields.

Accordingly, the US non -farm payroll increased by 339,000 in May, exceeding expectations. However, the unemployment rate increased to 3.7%, from a 53-year low of 3.4% in April.

Benchmark 10-year Treasury yields rose and the dollar strengthened, making greenback-denominated bullion less attractive.

Gold price today June 3: Turning around and sliding downhill - 1 — Gold prices fell sharply today.

Traders are pricing in a 70% chance that Fed policymakers will leave interest rates unchanged later this month.

Philadelphia Fed President Patrick Harker said Thursday that the US central bank should not raise interest rates at its next policy meeting in June.

Higher interest rates increase the opportunity cost of holding bullion.

Gold price movements today

+ Domestic gold price

At 6:30 a.m. on June 3, the gold price at Doji was listed at 66.4-67 million VND/tael (buy - sell), an increase of 50,000 VND/tael in both directions compared to the same time yesterday.

Meanwhile, the gold price at SJC was listed at 66.45-67.07 million VND/tael (buy - sell), an increase of 50,000 VND/tael in both directions compared to yesterday afternoon.

The price of gold rings and jewelry of all kinds is traded around 53.65 - 55.9 million VND/tael.

+ International gold price

The world gold price listed on Kitco is at 1,947 USD/ounce, down 30 USD/ounce compared to early this morning. Gold futures last traded at 1,950 USD/ounce.

Gold Price Forecast

Traders are betting on a 76.2% chance that the Fed will not raise interest rates at its June 13-14 meeting, according to data from CME Group’s FedWatch Tool. Non-yielding gold loses its appeal as interest rates rise.

Edward Meir, an analyst at global financial services platform Marex, said that sentiment in the gold market remains optimistic. Gold prices may rise slightly amid speculation that the Fed will keep interest rates unchanged at its meeting this month.

In the short term, gold could trade higher, approaching $1,980 an ounce, said Brian Lan, an expert at GoldSilver Central. The market is still speculating that the Fed will raise interest rates more, which will reduce the attractiveness of gold.

Edward Moya, senior market analyst at financial firm Oanda, said a key support level for gold around $1,950 an ounce could send the price back to $2,000 an ounce.

While weak commodity prices could ease inflationary pressures in the near term, renewed safe-haven demand remains a driver for gold, said Ole Hansen, head of commodity strategy at Saxo Bank.

“ Commodities are struggling because of the economic outlook. If the economy is as bad as commodities are pricing in, the Fed can’t raise rates indefinitely. In this environment, gold could easily go back to $2,000 an ounce. We’re not out of the woods yet. Going back to $2,000 would certainly improve sentiment, ” he said.

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