Gold prices rise from the bottom, ending a three-week sell-off, ready to re-test $2,000

Gold prices today, June 5, 2023, started the new week with a sharp decline at the end of last week. According to analysts, the strong optimism in the market is showing that gold is ready to increase in price, "retesting" the $2,000 level this week, when the three-week sell-off ends.

LIVE UPDATE TABLE OF GOLD PRICE TODAY 6/5 and EXCHANGE RATE TODAY 6/5

1. SJC - Updated: 06/03/2023 09:42 - Website time of supply source - ▼ / ▲ Compared to yesterday.
Type	Buy	Sell
SJC 1L, 10L	66,350	67,050
SJC 5c	66,350	67,070
SJC 2c, 1c, 5c	66,350	67,080
SJC 99.99 gold ring 1 chi, 2 chi, 5 chi	55,550	56,500
SJC 99.99 gold ring 0.5 chi	55,550	56,600
Jewelry 99.99%	55,400	56,100
Jewelry 99%	54,345	55,545
Jewelry 68%	36,302	38,302
Jewelry 41.7%	21,546	23,546

World gold prices fell sharply by nearly $30 before the end of last week. Recorded at the weekend session (June 2) on the Kitco floor, gold prices traded at $1,947.50/ounce, down $29.9 compared to the previous session . Entering the weekend, the August gold futures price was last traded at $1,971.80/ounce, up 0.40% compared to last Friday.

A weak USD and expectations that the US Federal Reserve will stop raising interest rates will help the gold market maintain its upward momentum, after increasing 0.2% this week. In particular, the strong optimism that pervades the market is expected to push the price of gold back to $2,000/ounce this week.

The results of the latest Kitco News weekly gold survey show that both Wall Street analysts and Main Street investors are bullish on gold in the near term.

Of the 19 Wall Street analysts who participated in the Kitco News Gold Survey last week, 10 analysts, or 53 percent, were bullish on gold this week; another five, or 26 percent, saw lower prices; and four analysts, or 21 percent, were neutral.

Meanwhile, of the 509 votes cast in online polls, 307 (or 60%) expect gold prices to rise this week; another 124 (24%) predict lower prices; the remaining 78 (15%) are neutral.

The broad-based optimism comes as the precious metal came under some selling pressure on Friday (June 2) after the US Department of Labor released strong employment data, saying 339,000 jobs were created last month, more than analysts expected. This information sent the world spot gold price down $30, to $1,947.

However, for the week as a whole, gold still rose 0.2%, ending three consecutive weeks of declines. Some analysts said that despite the high number of jobs, the new momentum of gold still has a chance to increase higher.

Before the weekend, although gold also failed to hold the $2,000 level, analysts believe that the bounce off the two-month low will create some bullish momentum in the coming period.

Gold price today June 5, 2023: Gold price hits bottom, ending three-week sell-off, ready to re-test $2,000 (Source: Kitco)

Domestic gold prices ended last week without much fluctuation, almost unchanged when comparing prices at the beginning of the week and the end of the week at major brands. However, domestic investors still suffered losses when buying SJC gold for short-term trading, as the high difference between buying and selling prices last week caused buyers to suffer heavy losses if investing in the short term. Specifically, if buying DOJI gold on May 28 at VND66.95 million/tael and selling on June 4, investors would lose VND600,000/tael. Similarly, gold buyers at Saigon Jewelry Company also lost VND700,000/tael.

Summary of SJC gold prices at major domestic trading brands at the closing time of last week (June 3):

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: 66.35 - 66.95 million VND/tael.

Phu Quy Group listed at: 66.35 - 66.95 million VND/tael.

PNJ system listed at: 66.40 - 67.00 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at: 66.42 - 67.00 million VND/tael; Rong Thang Long gold brand is traded at 55.46 - 56.36 million VND/tael; jewelry gold price is traded at 55.10 - 56.20 million VND/tael.

Converted according to the USD price at Vietcombank on June 3, 1 USD = 23,650 VND, the world gold price is equivalent to 55.52 million VND/tael, 11.53 million VND/tael lower than the selling price of SJC gold.

Gold prices are expected to rise this week

“There is an uptrend line connecting last Friday’s low and Tuesday’s low – I think that’s what the bulls had in mind and they’re going to lose at this point,” said James Stanley, senior market strategist at Forex.com .

Meanwhile, while prices are expected to rise next week, analysts do not expect to see a major breakout to a new all-time high. A weaker U.S. dollar next week will support gold prices, but he does not see prices breaking above $2,000 an ounce, said Colin Cieszynski, chief market strategist at SIA Wealth Management Inc.

“The easing of tensions in the political and banking systems suggests that if we do get a rally in gold, it will likely be modest and $2,000 remains a significant psychological barrier,” said analyst Colin Cieszynski.

Retail investors, along with Wall Street analysts, do not expect gold prices to hit record highs anytime soon, even as they remain bullish on the precious metal. Main Street expects prices to end around $1,997 an ounce next week, the survey showed.

For many analysts, the main driver for gold prices remains the Fed’s monetary policy stance. There are expectations that the Fed will seek to pause its stance when it meets in two weeks. However, economists have noted that a pause would not signal the end of the tightening cycle.

Some analysts noted that last month's significantly better-than-expected job gains supported the Fed's dovish stance. However, others pointed out that looking beyond the published numbers, cracks in the labor market are starting to appear. The U.S. unemployment rate rose to a seven-month high of 3.7%.

“I believe it is becoming increasingly clear that the Fed has peaked and that will be a tailwind for gold. However, the $2,070 level remains a key resistance level and it is difficult to see too much upside until it is broken,” said Adam Button, head of currency strategy at Forexlive.com .

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