Gold prices have not yet bottomed out, stimulating investors to buy at low prices or still being turned away?

Gold prices fell from around $2,000 an ounce to below $1,900 an ounce on July 1, as a series of data this week painted a picture of a strong U.S. economy and bet on further policy tightening. Has the sharp drop in gold prices spurred investor buying?

LIVE UPDATE TABLE OF GOLD PRICE TODAY 1/7 and EXCHANGE RATE TODAY 1/7

1. SJC - Updated: June 30, 2023 14:01 - Website time of supply source - ▼ / ▲ Compared to yesterday.
Type	Buy	Sell
SJC 1L, 10L	66,350	66,950
SJC 5c	66,350	66,970
SJC 2c, 1c, 5c	66,350	66,980
SJC 99.99 gold ring 1 chi, 2 chi, 5 chi	55,100	56,100
SJC 99.99 gold ring 0.5 chi	55,100	56,200
Jewelry 99.99%	55,000	55,700
Jewelry 99%	53,949	55,149
Jewelry 68%	36,030	38,030
Jewelry 41.7%	21,379	23,379

Gold prices suffered their worst month since February, hitting a more than three-month low, on track for their first quarterly decline in three, following a series of strong US economic data and hawkish comments from Federal Reserve officials. Most policymakers and the Fed chairman have said interest rates will need to be raised at least twice more by the end of the year.

Meanwhile, a series of the latest US economic indicators show that the country is likely to avoid a recession, and the market has now completely ruled out the possibility of a rate cut for 2023.

Higher interest rates put pressure on gold because they tend to lift bond yields and thus increase the opportunity cost of holding non-yielding gold.

According to TG&VN at 9:30 p.m. on June 30 (Vietnam time) on Kitco, the gold price was trading at 1,916.90 - 1,916.90 USD/ounce, up 8.8 USD compared to the previous session, after many consecutive sessions of decline . The August gold futures price was last traded at 1,916 USD/ounce, down 0.10% on the day.

Gold price today July 1, 2023: Gold price has not yet seen the bottom, stimulating investors to buy at low prices or still being turned away? (Source: Reuters)

With inflation still a concern and central banks signaling further rate hikes, gold is losing some of its appeal as the opportunity cost of holding the metal increases, said Ricardo Evangelista, senior analyst at ActivTrades. The prospect of higher interest rates has weighed on gold. A stronger dollar has turned foreign investors away from gold.

Domestic gold prices have slightly decreased again to around VND80,000 - 130,000/tael at some trading systems. Two major brands have changed prices: Saigon Jewelry adjusted the price of SJC gold down by VND100,000/tael for both buying and selling; Bao Tin Minh Chau system reduced the price by VND130,000/tael for buying and by VND80,000/tael for selling.

Jewelry gold prices have decreased more than SJC gold bars. Ring gold prices have fallen to nearly 56 million VND/tael for sale. From the first session of the week (June 26) to today, SJC jewelry gold prices have decreased by a total of 400,000 VND/tael for both buying and selling. However, Doji jewelry gold prices have "evaporated" 300,000 VND/tael for buying and decreased 250,000 VND/tael for selling.

World gold converted to billions of USD at Vietcombank is priced at over 54.5 million VND/tael (excluding taxes and fees). SJC gold price is still about 12.47 million VND/tael higher than international gold price.

Summary of SJC gold prices at major domestic trading brands at the closing time of the trading session on June 30:

Saigon Jewelry Company listed the price of SJC gold at 66.35 - 66.97 million VND/tael.

Doji Group currently lists SJC gold price at: 66.40 - 67.00 million VND/tael.

Phu Quy Group listed at: 66.45 - 67.05 million VND/tael.

PNJ system listed at: 66.45 - 66.95 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at: 66.37 - 66.95 million VND/tael; Rong Thang Long gold brand is traded at 55.43 - 56.28 million VND/tael; jewelry gold price is traded at 54.90 - 56.005 million VND/tael.

Gold price forecast may fall to near $1,850 ?

The gold market remains on the defensive, struggling to find direction, trying to push into "neutral territory" as inflationary pressures continue to rise as expected. However, looking at the broader trend, inflation remains high, more than double the Fed's 2% target. Along with that, when GDP growth is good, it will help the economy reduce risks. This information will encourage investors to "turn away" and limit their holdings of gold.

Interest rates could stay higher for longer than the market expects, said Harshal Barot, senior adviser at Metals Focus . Gold prices are expected to fall to near $1,850 an ounce this year.

The world's precious metals continue to face selling pressure as recession fears ease. The resilience of the US economy is forcing markets to reassess the outlook for monetary policy for the rest of the year, which will have a negative impact on the precious metal, according to leading precious metals research consultancy Metals Focus.

In the current macro environment, the likelihood of an outright recession is very small. This could be problematic for gold in the short term, with the risk of prices falling below $1,900/ounce.

Technically, gold could fall to $1,730 an ounce, down about 10% from current levels. However, Metals Focus forecasts an annual average price of $1,890 an ounce for 2023. The firm also points to geopolitical risks and strong central bank demand as factors limiting the sell-off.

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