Gold price "hesitant", constantly under pressure, Vietnamese people are bored with investing in precious metals?

Gold prices today, August 5, 2023, fluctuated slightly as the USD did not change much. The latest report from the World Gold Council said that in the second quarter of 2023, gold demand from Vietnamese consumers only reached 12.7 tons, down 9% after many consecutive quarters of increase.

LIVE UPDATE TABLE OF GOLD PRICE TODAY 8/5 and EXCHANGE RATE TODAY 8/5

1. PNJ - Updated: August 5, 2023 02:00 - Website supply time - ▼ / ▲ Compared to yesterday.
Type	Buy	Sell
HCMC - PNJ	56,000	57,100
HCMC - SJC	66,700	67,250
Hanoi - PNJ	56,000	57,100
Hanoi - SJC	66,700	67,250
Da Nang - PNJ	56,000	57,100
Da Nang - SJC	66,700	67,250
Western Region - PNJ	56,000	57,100
Western Region - SJC	66,800	67,200
Jewelry gold price - PNJ rings (24K)	56,000	57,000
Jewelry Gold Price - 24K Jewelry	55,800	56,600
Jewelry Gold Price - 18K Jewelry	41,200	42,600
Jewelry Gold Price - 14K Jewelry	31,860	33,260
Jewelry Gold Price - 10K Jewelry	22,300	23,700

World gold prices fluctuated within a narrow range as the USD did not change much. According to TG&VN at 7 p.m. on August 4, the world gold price on the Kitco exchange was at 1,931.4 - 1,932.4 USD/ounce, down slightly by 1.9 USD compared to the previous trading session.

In Asia, precious metals prices were headed for their worst week in six weeks on Wednesday afternoon, 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.

Gold prices have fallen more than 1% since the beginning of the week. Earlier in the session on August 3, the precious metal fell to its lowest level since July 11 when the yield on the 10-year US Treasury bond rose to its highest level since November 2022. These developments occurred after newly released economic data showed that inflation in the US has decreased.

Domestic gold price is listed at 66.55 - 67.3 million VND/tael (buy - sell).

Regarding the gold consumption situation in Vietnam, the latest report of the World Gold Council said that in the second quarter of 2023, the gold demand of Vietnamese consumers only reached 12.7 tons, down 9% after many consecutive quarters of increase. This shows that Vietnamese people seem to be bored with investing in gold.

Many people believe that people are no longer interested in SJC gold bars because of their high price and lack of fluctuations. Round, smooth gold rings are more attractive because they are almost equal to the world price. Moreover, many people have the habit of hoarding each tael of gold because of its small value, suitable for economic conditions.

Gold price today August 5, 2023: Gold price 'hesitant', constantly facing pressure, Vietnamese people are bored with investing in precious metals? (Source: CNBC)

Summary of SJC gold prices at major domestic trading brands at the close of trading at the beginning of the week (August 4):

Saigon Jewelry Company listed the price of SJC gold at 66.60 - 67.22 million VND/tael.

Doji Group currently lists the price of SJC gold at: 66.55 - 67.30 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: 66.70 - 67.22 million VND/tael; Rong Thang Long gold brand is traded at 56.17 - 57.02 million VND/tael; jewelry gold price is traded at 55.65 - 56.85 million VND/tael.

Gold prices are in trouble

Fitch Ratings recently downgraded the US government's long-term debt to 'AA+' from the highest 'AAA'. The downgrade, as stated by Fitch, reflects the "erosion in governance" of the world's largest economy in terms of leading economic sectors over the past 20 years. Investors continue to react to Fitch Rating's announcement. Specifically, the increased risk-aversion sentiment in the market does not provide much support for precious metals.

Jim Wyckoff, senior market analyst at Kitco, a gold market analysis site, said that traders and investors were not “shocked” by the unexpected news from Fitch. However, this information has somewhat reduced the optimism of the market.

The resilience of the U.S. economy has led to expectations that the Federal Reserve will continue to raise interest rates, which will continue to put pressure on gold prices, said Vandana Bharti, senior manager of commodities research at financial services firm SMC Global Securities.

The CME FedWatch tool estimates an 83% chance that the Fed will leave interest rates unchanged at its September meeting. Gold is highly sensitive to rate hikes. Higher interest rates increase the opportunity cost of holding non-yielding assets such as gold.

Nicky Shiels, metals strategist at MKS PAMP, said that precious metals will find it difficult to increase in price as the USD and bond yields continue to rise.

“In the short term, gold has no chance of gaining if its core drivers (USD, US real) are moving higher. Investors should watch the support level of $1,970/ounce. If the precious metal breaks this level, the price could hit $1,930/ounce. If the $1,900/ounce level is broken, gold is likely to fall to $1,850/ounce,” she stressed.

Source: https://baoquocte.vn/gia-vang-hom-nay-582023-gia-vang-lung-khung-lien-tuc-gap-ap-luc-nguoi-viet-chan-dau-tu-kim-loai-quy-237050.html