Gold price today (August 6): What determines the direction of gold next week?

Domestic gold price today

Early this morning, domestic gold bar prices fluctuated slightly and remained above 67 million VND/tael for sale.

DOJI gold in Hanoi is buying at 66.55 million VND/tael and selling at 67.3 million VND/tael. In Ho Chi Minh City, this brand of gold is buying at the same price but selling at 100,000 VND lower than in Hanoi, unchanged from the previous morning.

Domestic gold prices fluctuate slightly. Photo: thanhnien.vn

SJC gold in Hanoi and Da Nang areas kept the same buying price compared to the previous morning at 66.6 million VND/tael but adjusted up 100,000 VND for selling to 67.32 million VND/tael. In Ho Chi Minh City, SJC gold is still buying at the same price as in Hanoi and Da Nang areas but selling at 20,000 VND lower.

PNJ gold price is listed at 66.7 million VND/tael for buying and 67.25 million VND/tael for selling, unchanged from the previous morning. Bao Tin Minh Chau Gold is buying at 66.7 million VND/tael and selling at 67.28 million VND/tael, keeping the buying price unchanged but increasing 60,000 VND for selling compared to the previous morning.

Domestic gold bar prices updated at 5:30 am August 6 as follows:

World gold price today

Gold markets are back in neutral territory as prices are torn between rising bond yields and growing economic uncertainty. Next week’s inflation data will be the deciding factor in whether gold breaks out or sinks as the precious metal struggles to find direction, according to some analysts.

The neutral outlook comes as gold ended the week holding key short-term support but failing to find enough momentum to retest key resistance. Experts noted that the precious metal continues to face some difficulties as economic data failed to provide clear clues that the US Federal Reserve will be more dovish on monetary policy.

Specifically, the non-farm payrolls report released this weekend provided a mixed picture with lower-than-expected job numbers but rising wage inflation. The latest non-farm payrolls report showed 187,000 jobs were created in July, down from the 200,000 expected by experts. At the same time, wages increased 0.4% last month.

Some analysts have said that for gold to gain momentum and hold above $1,980 an ounce, the June consumer price index, due next week, must be lower than expected. However, many believe that inflation is not ready to return to 2% as energy and food prices continue to rise.

World gold is anchored around 1,950 USD/ounce. Photo: Getty Images

Christopher Vecchio, head of futures and foreign exchange at Tastylive.com, said gold could still be at risk even if inflation falls as expected. He said there is a chance inflation will fall but not enough to change the Fed’s stance, while there are more reports to come before the next policy meeting.

Meanwhile, some experts are optimistic that gold is finding new momentum as concerns about economic weakness are supporting safe-haven demand. Recently, Fitch Rating, one of the world's three largest credit rating agencies, downgraded the US government's long-term debt rating to 'AA+' from the highest 'AAA'. Ed Moya, senior analyst for North America at OANDA, said that concerns about the downgrade will make the market focus more on the health of the US economy and rising bond yields may actually create some safe-haven demand for gold.

Despite the short-term volatility, Moya said there are reasons to be optimistic about gold in the long term as the Fed is nearing the end of its tightening cycle. The expert explained that getting inflation to 2% is not easy, but the Fed can achieve that target because the economy is slowing.

With the domestic gold price stable and the world gold price anchored at 1,942.6 USD/ounce (equivalent to nearly 55.8 million VND/tael if converted at Vietcombank exchange rate, excluding taxes and fees), the difference between the domestic and world gold prices is about 11 million VND/tael./.

TRAN HOAI/qdnd.vn

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