LIVE UPDATE TABLE OF GOLD PRICE TODAY 8/6 and EXCHANGE RATE TODAY 8/6
| 1. PNJ - Updated: 08/06/2023 00:00 - Website time of supply - ▼ / ▲ Compared to yesterday. | ||
| Type | Buy | Sell |
| HCMC - PNJ | 56,100 | 57,100 |
| HCMC - SJC | 66,700 | 67,250 |
| Hanoi - PNJ | 56,100 | 57,100 |
| Hanoi - SJC | 66,700 | 67,250 |
| Da Nang - PNJ | 56,100 | 57,100 |
| Da Nang - SJC | 66,700 | 67,250 |
| Western Region - PNJ | 56,100 | 57,100 |
| Western Region - SJC | 66,700 | 67,300 |
| Jewelry gold price - PNJ rings (24K) | 56,100 | 57,000 |
| Jewelry Gold Price - 24K Jewelry | 55,900 | 56,700 |
| Jewelry Gold Price - 18K Jewelry | 41,280 | 42,680 |
| Jewelry Gold Price - 14K Jewelry | 31,920 | 33,320 |
| Jewelry Gold Price - 10K Jewelry | 22,340 | 23,740 |
Domestic gold price
In the first session of the week on July 31, in the Hanoi market, the price of SJC gold was listed by Saigon Jewelry Company at 66.6 - 67.22 million VND/tael (buy - sell), an increase of 50 thousand VND/tael in the buying direction, but a decrease of 50 VND/tael in the selling direction compared to the closing price yesterday.
After 3 sessions of unstable increases and decreases in the middle of the week, in the morning session of August 4, in the Hanoi market, the price of SJC gold was listed by Saigon Jewelry Company at 66.65 - 67.27 million VND/tael (buy - sell), an increase of 50 thousand VND/tael in both buying and selling compared to the closing session of August 3.
At the end of the week on August 5, Saigon Jewelry Company listed the price of SJC gold at 66.6 - 67.3 million VND/tael.
Thus, compared to the first session of the week on July 31 (at 66.6 - 67.22 million VND/tael), the price of SJC gold in the Hanoi market of Saigon Jewelry Company remained unchanged in the buying direction and increased by 80 thousand VND/tael in the selling direction.
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| Gold price today August 6, 2023, Gold price stuck in 'empty land', difficult to maintain its shine, experts have mixed opinions, SJC gold increases. (Source: Shutterstock) |
World gold price
In the world market, Asian gold prices headed for the worst trading week in six weeks on the afternoon of August 4, as investors awaited the US jobs report after a series of solid economic data this week pushed Treasury yields to a nine-month high.
Accordingly, spot gold price increased 0.1% to 1,935.39 USD/ounce at 3:00 p.m. (Vietnam time). US gold futures price also increased 0.1% to 1,970.60 USD/ounce.
According to the World & Vietnam , the world gold price closed the trading week (August 4) on the Kitco floor at 1,943.6 USD/ounce.
Summary of SJC gold prices at major domestic trading brands at the closing time of August 5:
Saigon Jewelry Company listed the price of SJC gold at 66.6 - 67.3 million VND/tael.
Doji Group currently lists the price of SJC gold at: 66.55 - 67.3 million VND/tael.
PNJ system listed at: 66.7 - 67.25 million VND/tael.
SJC gold price at Bao Tin Minh Chau is listed at: 66.7 - 67.28 million VND/tael; Rong Thang Long gold brand is traded at 56.33 - 57.18 million VND/tael; jewelry gold price is traded at 55.75 - 56.95 million VND/tael.
Converted according to the USD price at Vietcombank on August 5, 1 USD = 23,890 VND, the world gold price is equivalent to 55.94 million VND/tael, 11.36 million VND/tael lower than the selling price of SJC gold.
Markets Rely on US CPI Data
The global gold market is back in the white zone as prices are pushed and pulled by rising bond yields and economic uncertainty. Next week’s inflation data could be a “make or break” moment for the precious metal as it struggles to find direction, according to some analysts.
Gold's neutral outlook comes as prices ended the week holding key short-term support but failed to generate enough momentum to retest key resistance.
Analysts note that the precious metal still faces some headwinds as economic data does not provide solid evidence of whether the Fed will ease its hawkish bias.
The nonfarm payrolls report on August 4 provided a mixed picture for markets at best, with job creation coming in below expectations but wage inflation picking up. The latest nonfarm payrolls report showed 187,000 jobs were created in July, compared to economists’ expectations of 200,000. Wages also rose 0.4% last month.
Some analysts have said that for gold to regain its luster and maintain gains above $1,980 an ounce, the June Consumer Price Index (CPI), due next week, must come in lower than expected.
“I am cautiously bullish on gold next week, but if CPI is weak and gold fails to rally, then I think this market is done,” said Dan Pavilonis , senior commodities broker at RJO Futures.
However, some analysts do not believe inflation is ready to fall. Christopher Vecchio , head of foreign exchange at Tastylive.com, said he does not believe inflation will reach the Fed's 2% target.
The base effects that have supported the CPI decline since last year's peak are now working themselves out, he added, pointing out that the US economy is facing renewed increases in food and energy prices.
“I think the risk is that inflation data supports the Fed’s view that rates will have to stay higher for longer. We could also see the market start to price in a rate hike in November. That would create a difficult environment for gold,” he said.
Vecchio said he is neutral on gold, not wanting to bet on the precious metal as it looks like the US 10-year bond yield above 4% could peak.
“I haven’t seen any direction for gold in a few weeks. Every time we get above $1,950 an ounce, the rally doesn’t last long; every time we get below here, the sell-off doesn’t last long. The technicals are a mess, to be honest,” Vecchio said.
There is also a risk that even if inflation data is weaker than expected, it may not be enough to change the Fed's hawkish base as there are still plenty of numbers to come before the September or November monetary policy meetings, he added.
However, it is not just the Fed's monetary policy stance that is hanging over the gold market. The precious metal has found solid support as concerns about a slowing economy support safe-haven demand.
In addition, Fitch Ratings has downgraded the US government's long-term debt to AA+ from AAA.
There are concerns that this downgrade is more focused on the health of the US economy and rising bond yields could actually create some safe-haven demand for gold, said Ed Moya , senior analyst for North America at OANDA.
“If bond yields continue to rise, that could spook the market. Higher rates for longer is still an environment where gold can thrive,” he said.
Despite gold's short-term volatility, Moya said there are still good reasons for the precious metal to rally in the long term as the Fed nears the end of its tightening cycle.
“It will be a bumpy ride to get inflation down to 2%, but the Fed can hit that target because the economy is slowing. We are starting to see the end of monetary tightening as the Fed gets closer to its target and that is supportive for gold,” he said.
However, Vecchio said he did not expect the downgrade to create much fear in the market. He added that economic conditions were completely different from 2011 when the S&P 500 spooked markets with a downgrade, which eventually pushed gold prices to an all-time high above $1,900 an ounce.
While bond yields could rise further before challenging multi-year highs in October, analysts note that they are currently at levels that sparked the banking crisis in March and April, which saw several major US banks collapse.
In its announcement, Fitch said it sees the U.S. general government deficit rising to 6.3% of GDP in 2023, up from 3.7% in 2022. The deficit is expected to rise to 6.6% and 6.9% of GDP in 2024 and 2025, respectively.
The last time the US national debt was downgraded was in 2011, and it sparked a rally that pushed gold prices above $1,900 an ounce, an all-time high at the time. Fast forward 12 years and gold prices have barely broken free of support as they remain stuck in no-man’s land.
This time, it is no surprise that safe-haven demand for gold did not spike when Fitch downgraded the US. The fear in the markets was not as palpable as it had been in the past. In 2011, the global economy was still recovering from the Great Financial Crisis of 2008, growth was weak, the labor market was weak and the Fed was pumping billions of dollars into the economy.
Through 2023, after nearly three years of pandemic-related turmoil, growth remains robust, even as the Fed has aggressively raised interest rates and reduced the money supply to bring inflation down to its 2% target.
But just because gold hasn't reacted doesn't mean it won't. In a recent interview, John LaForge , head of real asset strategy at Wells Fargo Investment Institute, said he expects gold prices to rise through the end of the year as more investors focus on U.S. debt.
“If we get the money supply to skyrocket again and investors start to worry that we’re printing too much money, then we’re going to see a long-term rally in gold and silver. I think that rally will last for three years,” said Laforge.
Is Gold Still a Safe Haven?
Meanwhile, Michele Schneider , director of research and trading education at MarketGauge, said that the Fitch downgrade is just another step in gold's long-term trajectory.
“Debt to GDP at high interest rates is a huge pressure on the economy. Once things stabilize, gold could return as a safe haven,” Schneider said.
While gold hasn’t seen any new gains, the market is still in pretty good shape. This week, the World Gold Council noted that healthy physical demand supported the highest average quarterly gold price in the second quarter.
According to the report, global gold demand excluding OTC fell to 921 tonnes, down 2% year-on-year. However, when limited data from OTC markets are included, global gold demand rose to 1,255 tonnes, up 7% year-on-year in Q2 2022.
We can see that there is a lot of interest in gold, but the market continues to lack the spark that could push prices back above $2,000/ounce.
The biggest hurdle to gold's upside remains the Fed, and despite growing threats to the US economy, the bank has yet to give a definitive answer on when this current tightening cycle will end.
So the market will remain choppy until the economic picture becomes clearer.
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