Gold prices rise more than 2%, USD weak, bulls expect gold to return to all-time high

World gold prices have increased by more than 2% in the past week, pulling domestic gold ring prices up to the same level as SJC gold bars. How will the gold market continue this week - the possibility of reaching 2,400 USD/ounce this week?

LIVE UPDATE TABLE OF GOLD PRICE TODAY 7/8 and EXCHANGE RATE TODAY 7/8

1. SJC - Updated: 07/05/2024 08:18 - Website time of supply source - ▼ / ▲ Compared to yesterday.
Type	Buy	Sell
SJC 1L, 10L, 1KG	74,980	76,980
SJC 5c	74,980	77,000
SJC 2c, 1c, 5c	74,980	77,010
SJC 99.99 gold ring 1 chi, 2 chi, 5 chi	74,600	76,200
SJC 99.99 gold ring 0.3 chi, 0.5 chi	74,600	76,300
Jewelry 99.99%	74,500	75,500
Jewelry 99%	72,752	74,752
Jewelry 68%	48,995	51,495
Jewelry 41.7%	29,137	31,637

Update gold price today 7/8/2024

Domestic gold prices have not shown any new developments, except for the upward movement of ring gold prices.

The price of SJC gold bars continued to remain unchanged at 76.98 million VND/tael (selling) for more than a consecutive month, 1 million higher than the price the State Bank sold to 4 state-owned banks and SJC.

The domestic market's demand for gold has always remained high, making the online gold selling solution of banks and SJC quite effective. At the State Bank's meeting at the end of June, gold bar sellers said they would improve processes and technology to facilitate people with real needs and eliminate speculation. The management agency also reiterated its view of "having enough resources and determination" to stabilize the domestic gold market.

The price of gold rings is "climbing steadily" with the strong "pull" of the world market. Accordingly, the price of 9999 round smooth gold rings at some brands has risen to the same level as the price of gold bars.

The price of 24K gold rings at Saigon Jewelry Company (SJC) last weekend increased by 200,000 VND in both buying and selling directions, trading at 74.60 - 76.20 million VND/tael, only half a million VND lower than the price of gold bars of this brand.

DOJI Group adjusted the price of plain round gold rings to 75.65 - 76.95 million VND/tael, only 30,000 VND lower than the price of SJC gold bars.

Bao Tin Minh Chau listed the selling price of each round ring at nearly 76.7 million VND, equal to the price of this brand's gold bars and only nearly 300,000 VND less than the price of SJC gold bars.

The price of SJC gold bars continues to remain unchanged at 76.98 million VND/tael for more than a consecutive month. (Source: CafeF)

World gold prices continued to increase in the last session of the week, sending prices soaring. to a 1-month high.

At the end of last week's trading session (July 5), the world spot gold price increased by nearly 33 USD to 2,388 USD/ounce - the highest level since early June. Overall, the gold price increased by more than 2% for the week and marked the second consecutive week of increase. Meanwhile, the gold futures price increased by 0.8% to 2,389.10 USD/ounce.

Converted according to the USD exchange rate at Vietcombank , each tael of world gold is currently trading at 73.3 million VND. The difference between domestic and world gold bar prices is currently only over 3.5 million VND.

The precious metal continued to rise thanks to a weak US jobs report, reinforcing expectations that the US Federal Reserve will cut interest rates in September. Investors now expect a 72% chance of the Fed cutting interest rates in September. Even the probability of the Fed acting a second time at its December meeting is increasing. Low interest rates will make gold more attractive.

The dollar fell to a three-week low against a basket of major currencies on Friday after the jobs report was released. A weaker dollar makes gold less expensive for non-U.S. buyers.

The only “dark spot” for the gold market last week was the trading session on July 2, when gold prices fell as US government bond yields rose higher. However, gold prices reversed and recovered immediately in the following trading session (July 3), rising more than 1% to a nearly two-week high. Increased speculation that the Fed will cut interest rates in September 2024, after recent data showed the labor market was easing, contributed to the rise in gold prices.

The market remains sensitive to any talk about interest rates or anything related to Fed policy, said Phillip Streible, a strategist at commodities brokerage Blue Line Futures .

Gold price forecast?

The US Department of Labor's July 5 report showed that the country's job growth continued to slow in June. Specifically, the US non-farm sector added 206,000 jobs in June 2024, while the May 2024 figure was revised down sharply. The unemployment rate rose to 4.1% in June 2024, from 4.0% the previous month. The report also showed that average hourly earnings for workers increased 3.9% year-on-year, the first time in three years that they have been below 4% and a sign that price pressures are easing.

“As expected, the US employment data released confirmed continued weakness in the labor market, although not as pronounced as expected, but still enough to support the Fed’s dovish stance,” said technical analyst Ricardo Evangelista at ActivTrades .

The analyst said that in the first half of the year, the resilience of the economy allowed the Fed to maintain high interest rates for a long time. When there were signs of an economic slowdown, the USD fell, as did the lower Treasury yields. These supported the price of gold. He said that he would not be surprised to see gold reach $2,400/ounce next week.

New York-based independent metals trader Tai Wong said bulls are looking for a scenario where gold prices will return to their all-time high of $2,450 an ounce if the Fed starts giving public hints (about the timing of rate cuts) in September 2024.

Jim Wyckoff, senior market analyst at Kitco Metals , said the gold market is being supported by bargain-hunting by investors, while rising crude oil prices and a weaker US dollar are also providing upward pressure on gold. He predicted that gold prices will likely trade sideways or decline through the summer.

Jonathan Petersen, senior market economist at Capital Economics , predicts the USD could fall further as deflationary pressures begin to ease. This environment is supportive for gold prices.

Source: https://baoquocte.vn/gia-vang-hom-nay-872024-gia-vang-tang-hon-2-dong-usd-yeu-nha-dau-co-gia-len-ky-vong-vang-quay-lai-muc-cao-nhat-moi-thoi-dai-277679.html