US cautious, gold increases rapidly

Domestic gold price

At the end of the trading session on June 14, the domestic 9999 gold price was listed by SJC and Doji Gold and Gemstone Group in the following order of buying and selling:

SJC Hanoi : 66,550,000 VND/tael - 67,170,000 VND/tael
Doji Hanoi: 66,400,000 VND/tael - 67,000,000 VND/tael
SJC HCMC: 66,550,000 VND/tael - 67,150,000 VND/tael
Doji HCMC: 66,500,000 VND/tael - 67,000,000 VND/tael

International gold price

On the night of June 14 (Vietnam time), the world spot gold price stood at around 1,956 USD/ounce. Gold for August delivery on the Comex New York floor was at 1,979 USD/ounce.

The world gold price on the night of June 14 was about 7.2% higher (132 USD/ounce) than at the beginning of 2023. World gold converted to the bank USD price was 56.3 million VND/tael, including taxes and fees, about 10.8 million VND/tael lower than the domestic gold price as of the end of the afternoon session on June 14.

Gold prices increase due to USD decrease. (Photo: HH)

Gold prices rose again after the DXY index (measuring the USD's fluctuations against a basket of six major currencies in the world) fell from 103.3 points to below 103 points. The US is cautious about the impact of the unprecedented monetary tightening in more than 40 years.

The precious metal was further supported after the US Department of Labor said that the producer price index (PPI) in May fell sharply by 0.3% after increasing by 0.2% in April. This was a surprise development because economists forecast the PPI index to only decrease by 0.1% in May.

Economists pay close attention to the Producer Price Index (PPI). It is a leading indicator of consumer price movements. Traditionally, companies raise or lower their prices in response to changes in input costs.

Gold Price Forecast

The fall in PPI suggests that inflation will cool further. The US Federal Reserve (Fed) may be more cautious in raising interest rates. The USD also fell following positive signals in the market.

However, gold has not rallied much. Core inflation is still well above the 2% target. High prices continue to weigh on the economy.

In a recent Kitco survey, most analysts forecast gold to rise this week. However, in the short term, gold is still under profit-taking pressure and the upside is hindered by expectations that the Fed will not end its rate-hike cycle. Gold is forecast to have difficulty surpassing the $2,000/ounce threshold in the short term.

Blue Line Futures representative said that the market still has many potential uncertainties. Gold needs to overcome important resistance levels before entering a new uptrend.

Source: https://vietnamnet.vn/gia-vang-hom-nay-15-6-my-than-trong-vang-tang-nhanh-2154755.html