World gold prices fluctuate, domestic prices drop sharply, strong selling pressure, should we buy?

Gold prices today, September 22, 2023, fell across both domestic and international markets. The US dollar and bond yields rose after the Fed reinforced its hawkish stance on interest rates. With a clear message that interest rates will remain high and long-term, and the interest rate level is likely to be pushed up to 5.5 - 5.75%, gold prices have fluctuated.

LIVE UPDATE TABLE OF GOLD PRICE TODAY 9/22 AND EXCHANGE RATE TODAY 9/22

1. PNJ - Updated: September 22, 2023 00:30 - Website supply time - ▼ / ▲ Compared to yesterday.
Type	Buy	Sell
HCMC - PNJ	57,100	58,100
HCMC - SJC	68,600	69,300
Hanoi - PNJ	57,100	58,100
Hanoi - SJC	68,600	69,300
Da Nang - PNJ	57,100	58,100
Da Nang - SJC	68,600	69,300
Western Region - PNJ	57,100	58,100
Western Region - SJC	68,550	69,050
Jewelry gold price - PNJ rings (24K)	57,100	58,000
Jewelry Gold Price - 24K Jewelry	56,900	57,700
Jewelry Gold Price - 18K Jewelry	42,030	43,430
Jewelry Gold Price - 14K Jewelry	32,510	33,910
Jewelry Gold Price - 10K Jewelry	22,750	24,150

Domestic gold prices have fallen sharply by VND100,000 to VND150,000 per tael across most brands. However, SJC gold prices remain high at over VND69 million per tael. The difference between the buying and selling prices of SJC gold remains at VND700,000 per tael. It is forecasted that market developments may cause domestic gold prices to fall further in the morning session of September 22.

World gold price traded on Kitco floor at 1,919.70 USD/ounce, down 10.10 USD compared to the previous session, recorded by TG&VN at 9:15 p.m. on September 21 (Vietnam time). The price of gold futures for December delivery was last traded at 1,935.50 USD/ounce, down 1.6% on the day.

Gold prices retreated as the Fed forecast was more hawkish than previously expected. The precious metals market had priced in a dovish Fed ahead of the meeting,” New York-based precious metals trader Tai Wong told Reuters. Both the dollar and US Treasury yields rose after the Fed meeting, adding to the downward pressure on gold.

The global gold market has also seen some significant selling pressure ahead of the latest US economic data and has seen further losses in its initial reaction to the new data. Gold prices are typically very sensitive to US labour market data as it remains a key factor in the US Federal Reserve’s monetary policy decisions.

On April 20, the Fed decided to keep interest rates unchanged in the range of 5.25 - 5.50%, while updated forecasts showed that 12 of the agency's 19 policymakers supported another rate hike this year to ensure inflation continues to slow. At the same time, the hawkish stance will be maintained until 2024.

Gold price today September 22, 2023: World gold price fluctuates, domestic price drops sharply, strong selling pressure, should you buy? (Source: Kitco)

Summary of SJC gold prices at major domestic trading brands at the closing time of September 21:

Saigon Jewelry Company listed the price of SJC gold at 68.35 - 69.07 million VND/tael.

Doji Group currently lists the price of SJC gold at: 68.40 - 69.30 million VND/tael.

Phu Quy Group currently lists the price of SJC gold at: 68.35 - 69.05 million VND/tael.

PNJ system listed at: 68.60 - 69.30 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at: 68.36 - 69.03 million VND/tael; Rong Thang Long gold brand is traded at 57.16 - 58.06 million VND/tael; jewelry gold price is traded at 56.75 - 57.85 million VND/tael.

Converting world gold price according to USD exchange rate at Vietcombank: 1 USD = 24,480 VND, world gold price is equivalent to 56.81 million VND/tael, 12.39 million VND/tael lower than SJC gold selling price on the morning of September 21.

Gold price forecast?

The US dollar climbed to a six-month high, while 10-year bond yields hit an 18-year high, pressuring gold, which is priced in greenbacks and does not carry interest.

Meanwhile, Fed Chairman Jerome Powell said that only when the Fed sees a slowdown in the US labor market will it feel comfortable changing its current monetary policy stance. He added that in the current environment, he expects the central bank to maintain restrictive interest rates in the near term to bring inflation down to 2%.

The Federal Open Market Committee (FOMC) said in a statement that US job growth has slowed but remains solid. It also said the US economy is growing strongly and inflation remains high. The FOMC forecast that it will raise interest rates by 0.25% over the rest of 2023 to address inflation.

The US Department of Labor said on September 21 that weekly jobless claims fell by 20,000 to 201,000, down from the previous week's revised estimate of 221,000. The latest labor market data was significantly stronger than expected.

In the short term, the USD is expected to continue to increase or stabilize at a high level because the Fed is expected to raise interest rates once more to pull up inflation, which is still quite high compared to the 2% target.

Therefore, the world gold price is still under downward pressure. However, the demand for gold has recently increased and may increase even more during the upcoming peak gold consumption season - the end of the year in the West and the Lunar New Year in some Asian countries, including China.

Gold traders have been paying attention to the Fed's message of higher rates for longer, forcing gold buyers to temper their enthusiasm and temporarily limit their jump into the market, said Han Tan, chief market analyst at Exinity .

Standard Chartered Bank's Suki Cooper predicts that the momentum for gold prices will be limited in the near future and the precious metal's price increase may not last until the market believes that interest rates in the US and globally will decrease and the USD will weaken.

"Interest rate uncertainty is keeping gold attractive to buyers and that is limiting downside at least for now," said Tim Waterer, an analyst at KCM Trade . "The precious metal will likely have to rely on slowing Treasury yields to see any significant upside."

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