Gold price is losing ground, USD is on the rise, SJC gold is going in the opposite direction, should we sell to cut losses or hunt for bargains?

Gold prices today, September 29, 2023, are plummeting, breaking through the crucial support level of $1,900 per ounce, while the US dollar continues to appreciate. According to analysts, at this time, as investors rush to sell to cut losses, the market is also attracting some technical buying after prices fell to their lowest level in 6.5 months. SJC gold prices are once again operating alone in the market.

LIVE UPDATE TABLE OF GOLD PRICES AND EXCHANGE RATES TODAY, SEPTEMBER 29TH

1. PNJ - Updated: 29/09/2023 00:00 - Time on source website - ▼ / ▲ Compared to yesterday.
Type	Buy	Sell
Ho Chi Minh City - PNJ	56,500	57,500
Ho Chi Minh City - SJC	68,100	68,800
Hanoi - PNJ	56,500	57,500
Hanoi - SJC	68,100	68,800
Da Nang - PNJ	56,500	57,500
Da Nang - SJC	68,100	68,800
Western Region - PNJ	56,500	57,500
Western Region - SJC	68,250	68,850
Prices of gold jewelry - PNJ rings (24K)	56,500	57,500
Gold jewelry prices - 24K jewelry	56,400	57,200
Gold jewelry prices - 18K jewelry	41,650	43,050
Gold jewelry prices - 14K jewelry	32,210	33,610
Gold jewelry prices - 10K jewelry	22,550	23,950

Domestic gold prices are moving in the opposite direction to the global market, rising again and widening the price difference.

The price of SJC gold increased by 50,000 VND/ounce for both buying and selling compared to the morning's opening price. At the close of trading on September 28th, at Saigon Jewelry Company, the listed price of SJC gold was 68.1 - 68.8 million VND/ounce.

The price of gold rings, specifically 9999 gold, has fallen sharply, with buying prices at 56.6 million VND and selling prices at 57.55 million VND, a decrease of 50,000 VND in the buying price and 150,000 VND in the selling price after just one day. Therefore, if an investor bought gold rings a week ago and sells them now, they would lose up to 1.6 million VND per tael. At Saigon Jewelry Company, the price of 9999 gold has also adjusted to 56.45-57.4 million VND per tael, a decrease of approximately 700,000 VND per tael in both buying and selling prices compared to last week's peak.

According to World & Vietnam Newspaper , at 9:00 PM on September 28th (Vietnam time), the world gold price on the Kitco exchange was trading at $1,873.50 per ounce , a further decrease of $1.50 compared to the previous session. The December gold futures contract was last traded at $1,896.30 per ounce, up 0.26% for the day.

World gold prices have slipped below the $1,900/ounce mark. The gold market appears to be ignoring the latest economic data and a more stable, better-than-expected labor market. Meanwhile, the precious metals market is witnessing some rather modest bargain hunting after world gold prices fell to their lowest level since March.

The latest US labor market data did not bode well for gold as it continued to support the aggressive monetary policies of the Federal Reserve (Fed), which have pushed bond yields to a new 16-year high above 4.5%.

Based on the USD exchange rate at Vietcombank, the current international gold price is equivalent to 55.4 million VND per tael, approximately 13 million VND higher than the world price.

Gold prices today, September 29, 2023: Gold loses ground, the US dollar rises, SJC gold surges; should you sell to cut losses or hunt for bargains? (Source: Shutterstock)

The possibility that US interest rates will remain high for longer than previously expected has fueled the rise of the US dollar, making gold more expensive for buyers using other currencies. Currently, the dollar's appreciation is not entirely due to an improving US economy, but also to very high US interest rates. The US benchmark interest rate is at its highest level in 22 years, at 5.25%-5.5%. Meanwhile, interest rates in many other countries are lower, causing capital outflows from emerging markets, which also pushes the dollar higher.

The possibility of a US government shutdown this weekend is weighing on market sentiment and could slow the dollar's upward momentum. In addition, the Chinese economy received some positive news, including the first increase in industrial production in over a year in August. These factors could curb the dollar's rise, thereby supporting gold.

Summary of SJC gold prices at major domestic gold retailers at the close of trading on September 28:

Saigon Jewelry Company listed the price of SJC gold at 68.15 - 68.87 million VND/ounce.

Doji Group currently lists the price of SJC gold at: 68.05 – 68.85 million VND/ounce.

Phu Quy Group listed the price of gold at 68.10 - 68.80 million VND/ounce.

PNJ's listed price is: 68.10 – 68.80 million VND/ounce.

The price of SJC gold at Bao Tin Minh Chau is listed at: 68.17 – 68.85 million VND/ounce; the Thang Long Dragon gold brand is trading at 56.48 – 57.38 million VND/ounce; and the price of gold jewelry is trading at 56.10 – 57.20 million VND/ounce.

Will the downward trend in gold prices continue?

Global gold prices have fallen sharply, extending their decline and facing further pressure.

Precious metals have extended their decline over the past three sessions as forecasts of higher US interest rates for an extended period have driven investors to seek refuge in the US dollar. This has also pushed US government bond yields to a 16-year high. The yield on 10-year US Treasury bonds briefly reached 4.648%, and the yield on 2-year bonds also rose. This is the main reason why gold has become less attractive to investors.

According to some analysts, the downward trend in gold could continue, potentially reaching a 2023 low of around $1,810 per ounce. Analysts note that the gold sell-off occurred after the Fed signaled it would maintain a tight monetary policy in the near future, even after the tightening cycle ends. The Fed's stance has pushed the US dollar to its highest level since November.

Everett Millman, a precious metals expert at online gold dealer Gainesville Coins, believes that the Fed and other central banks' stance of maintaining tighter monetary policies for a longer period has restrained the growth of gold prices. He predicts that gold will trade in the range of $1,910-$1,950 per ounce between now and the end of the year.

According to expert Greg Bassuk, CEO of AXS Investments , inflation remains a major concern. Investors are worried not only about rising interest rates but also about how that will impact companies with higher borrowing costs.

Meanwhile, commodity strategist Ryan McKay at TD Securities argues that as long as the narrative of higher interest rates for a longer period persists, it will continue to put pressure on precious metals. The drop in gold below $1,900 per ounce triggered technical selling pressure. If inflation data continues to be strong, that will negatively impact gold.

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