US economy accelerates, gold plummets.

VietNamNet•03/08/2023

Domestic gold prices today, August 3rd.

Early this morning, August 3rd , the price of 9999 gold from SJC remained unchanged compared to the closing price of yesterday's trading session.

The price of 9999 gold was updated by Saigon Jewelry Company Limited (SJC) at 8:35 AM and the price of 9999 gold was listed by Doji Gold and Jewelry Group at 8:46 AM as follows:

	Buy	Sell
SJC Hanoi	66,600,000 VND/ounce	67,220,000 VND/ounce
SJC Ho Chi Minh City	66,600,000 VND/ounce	67,200,000 VND/ounce
SJC Da Nang	66,600,000 VND/ounce	67,220,000 VND/ounce
Doji Hanoi	66,550,000 VND/ounce	67,300,000 VND/ounce
Doji Ho Chi Minh City	66,650,000 VND/ounce	67,150,000 VND/ounce

Updated SJC and DOJI gold prices at the beginning of the morning on August 3rd.

At the close of trading on August 2nd, the domestic price of 9999 gold was listed by SJC and Doji Gold and Gemstone Group in the following order for buying and selling:

SJC Hanoi: 66,600,000 VND/ounce - 67,220,000 VND/ounce
Doji Hanoi: 66,550,000 VND/ounce - 67,300,000 VND/ounce
SJC Ho Chi Minh City: 66,600,000 VND/ounce - 67,200,000 VND/ounce
Doji Ho Chi Minh City: 66,650,000 VND/ounce - 67,150,000 VND/ounce

The central exchange rate for August 3rd , announced by the State Bank of Vietnam, is 23,803 VND/USD, an increase of 30 VND compared to yesterday. The USD exchange rate at commercial banks this morning (August 3rd) is trading around 23,545 VND/USD (buying) and 23,915 VND/USD (selling).

International gold prices today, August 3rd.

At 9:28 AM today (August 3rd, Vietnam time), the spot price of gold in the world market stood around $1,936.6 per ounce, down $10.4 per ounce compared to last night. The price of December gold futures on the Comex New York exchange was $1,972.3 per ounce.

International gold price fluctuations over the past 24 hours (Image: Kitco)

On the night of August 2nd (Vietnam time), the spot price of gold in the world market stood around $1,947 per ounce. Gold futures for December delivery on the Comex New York exchange were at $1,981 per ounce.

World gold prices on the night of August 2nd were approximately 6.8% higher (US$123/ounce) than at the beginning of 2023. Converted using the bank's USD exchange rate, world gold was priced at VND 56.6 million/ounce, including taxes and fees, which is about VND 10.8 million/ounce lower than domestic gold prices as of the end of the trading session on August 2nd.

Gold prices on the international market continued to fall, while the US dollar came under pressure from Fitch's negative assessments of the US economy.

World gold prices continued to plummet by more than $30 in the early afternoon of August 3rd (Vietnam time), falling to $1,933 per ounce.

In the Hong Kong market at 2 PM, the price briefly dropped to as low as $1,930 per ounce.

During the trading session on August 2nd, the gold market experienced fluctuations due to conflicting information regarding the US economy.

Gold rebounded strongly after credit rating agency Fitch downgraded the US credit rating by one notch, from AAA to AA+. The weakening US dollar also pushed gold prices higher.

*Gold prices continued to fall today. (Photo: MR)*

However, precious metals prices soon reversed course and fell as the USD recovered after the White House objected to Fitch's downgrade of the US credit rating. The government disagreed with Fitch Ratings' decision to lower the US credit rating and asserted that the US economy was recovering strongly.

Gold also fell after the US released positive data on the US labor market, particularly in the private sector.

According to ADP, the economy added 324,000 jobs in July, significantly higher than the 191,000 jobs forecast by economists.

Gold prices also fell as yields on 10-year US Treasury bonds rose above 4% per year. Investors intensified their accumulation of USD to buy bonds.

Gold price forecast

Despite the decline, gold is projected to rise in the medium and long term as the US dollar enters a period of depreciation.

Demand for gold remains high. Central banks around the world continue to aggressively buy gold. According to the World Gold Council (WGC), in the first half of 2023, central banks purchased a record 387 tonnes of gold, the highest level for the same period in any year since 2000.

It is also worth noting that jewelry gold consumption continued to increase in the second quarter despite high gold prices. Jewelry gold consumption reached 476 tons, a 3% increase compared to the same period last year.

The recovery of the European and Chinese economies could also slow the rise of the US dollar, thereby pushing gold prices higher.

China's demand for gold is projected to increase in the second half of this year thanks to stimulus policies aimed at boosting consumption and investors seeking safe-haven assets. This is also traditionally the peak season for gold jewelry consumption related to holidays.

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