Gold price recovers strongly, "hunting" for bargains, what do experts predict?

Gold prices today, May 31, 2023, rose slowly but steadily due to bargain hunting and some short covering in the futures market after the yellow metal hit a 9-week low. Experts said that many risks affect gold, so it is difficult to predict the next trend.

LIVE UPDATE TABLE OF GOLD PRICE TODAY 5/31 AND EXCHANGE RATE TODAY 5/31

1. SJC - Updated: 05/30/2023 15:34 - Website time of supply source - ▼ / ▲ Compared to yesterday.
Type	Buy	Sell
SJC 1L, 10L	66,400	67,000
SJC 5c	66,400	67,020
SJC 2c, 1c, 5c	66,400	67,030
SJC 99.99 gold ring 1 chi, 2 chi, 5 chi	55,550 ▼50K	56,500 ▼50K
SJC 99.99 gold ring 0.5 chi	55,550 ▼50K	56,600 ▼50K
Jewelry 99.99%	55,400 ▼50K	56,100 ▼50K
Jewelry 99%	54,345 ▼49K	55,545 ▼49K
Jewelry 68%	36,302 ▼34K	38,302 ▼34K
Jewelry 41.7%	21,546 ▼21K	23,546 ▼21K

The world gold price bounced from below $1,950 - the lowest level in the past 2 months. The USDX index was weaker after reaching a two-month high last week and the US Treasury bond yield fell on the first day of the US trading week - currently at 3.725%, supporting the recovery of gold prices.

According to TG&VN at 9:25 p.m. on May 30 (Vietnam time), the gold price traded on Kitco floor was at 1,954.9 - 1,955.9 USD/ounce, up 11.9 USD compared to the previous session . Last time, gold futures for August delivery increased by 10.60 USD, trading at 1,973.70 USD/ounce.

The market saw some buyers return. Earlier concerns about the US debt ceiling deal also supported prices, but investors’ renewed bets on the path of the US Federal Reserve’s interest rate hikes capped gains. Markets are pricing in a 56.6% chance of the US central bank raising interest rates at its June 13-14 meeting.

Conversely, when the Fed may slow down its rate cuts as inflation remains a concern, a recession will lead to lower rates and thereby remove support for the US dollar, helping gold rise.

Giá vàng hôm nay 23/9, sẵn sàng chờ gió lớn từ Fed

Gold price today May 31, 2023: Gold price recovers strongly, the 'hunt' for bargain prices, what do experts predict? (Source: Kitco)

Domestic gold prices fluctuate inconsistently among trading systems nationwide. As of the afternoon of May 30, Saigon Jewelry Company increased its SJC gold price by VND50,000/tael in both buying and selling prices, maintaining the 67.02/tael mark (selling price), while other brands all decreased and fell below this price threshold.

The price of Bao Tin Minh Chau's Thang Long Dragon Gold Brand jewelry gold decreased sharply by 190,000 VND/tael compared to yesterday, currently standing at 55.58 - 56.48 million VND/tael (buy - sell).

Converting world gold price according to USD exchange rate at Vietcombank : 1 USD = 23,650 VND, world gold price is equivalent to 55.45 million VND/tael, 11.5 million VND/tael lower than SJC gold price.

Summary of SJC gold prices at major domestic trading brands at the closing time of May 30:

Saigon Jewelry Company listed the price of SJC gold at 66.40 - 67.02 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: 66.40 - 66.95 million VND/tael.

PNJ system listed at: 66.40 - 66.95 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at: 66.42 - 66.98 million VND/tael; Rong Thang Long gold brand is traded at 55.68 - 56.58 million VND/tael; jewelry gold price is traded at 55.30 - 56.40 million VND/tael.

Can Gold Find Support?

In its latest newsletter, the World Gold Council (WGC) said its survey found that 24% of central banks plan to increase their gold holdings by 2023. Reasons include higher inflation, geopolitical uncertainty and concerns about interest rates.

Observers say that gold prices are bouncing strongly, with momentum increasing, traders may choose a position to enter a long position. This action will push the price up to $1,990, followed most likely by $2,010.

Some experts also predict that gold prices will continue to increase and reach a new record high in 2023 when the Fed will end its interest rate hike cycle and reverse to a decrease. A weak USD and still high inflation will support gold prices. Some gold funds also believe that after this price decline, gold will begin a new period of price increase, with prices exceeding $2,100/ounce in 2023.

However, Michael Langford, director of consultancy AirGuide, disagreed, saying that highly volatile events such as the regional banking crisis and the US debt ceiling deal are gradually losing their "dangerous" level, which has reduced market interest in gold, as investors turn to other, riskier investments.

Meanwhile, the recent increase in hawkishness on interest rates by Fed officials has somewhat offset the decline in gold prices. Markets now estimate a 37% chance that the Fed will keep rates unchanged in June 2023.

OCBC FX strategist Christopher Wong said that in the short term, gold is likely to continue to decline, approaching the price of $1,892/ounce.

According to Kitco , the next support level for gold is $1,940/ounce. If it falls below that level, gold prices could slide to $1,915/ounce, or even $1,900/ounce.

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