Domestic gold prices
At the close of trading on June 27th, 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 : 66,350,000 VND/ounce - 66,950,000 VND/ounce
Doji Hanoi: 66,350,000 VND/ounce - 66,950,000 VND/ounce
SJC Ho Chi Minh City: 66,350,000 VND/ounce - 66,970,000 VND/ounce
Doji Ho Chi Minh City: 66,450,000 VND/ounce - 66,950,000 VND/ounce
International gold prices
On the night of June 27th (Vietnam time), the spot price of gold in the world market stood around $1,925 per ounce. Gold futures for August delivery on the Comex New York exchange were at $1,947 per ounce.
World gold prices on the night of June 27th were approximately 5.5% higher (US$101/ounce) than at the beginning of 2023. Converted using the bank's USD exchange rate, world gold was priced at VND 55.4 million/ounce, including taxes and fees, which is about VND 11.6 million/ounce lower than domestic gold prices as of the end of the trading session on June 27th.
Gold prices on the international market remain relatively weak and hover around their lowest level in four months due to occasional positive signals from the US economy and a significant drop in oil prices.
Gold came under downward pressure after the US announced that durable goods orders in May rose 1.7%, compared to a forecast of a 1% decline. This data immediately supported the US dollar, thereby putting pressure on gold.
Gold prices also fell due to a sharp drop in oil prices, with both WTI and Brent crude falling by more than 1% to $68.6 per barrel and $73.4 per barrel, respectively. Saudi Arabia is preparing to cut crude oil production by 1 million barrels per day (to 9 million barrels per day) starting in July.
Oil and gold are two commodities that are closely related.
The release of positive economic signals from the US has led investors to worry that the Federal Reserve (Fed) has more grounds to raise interest rates two more times in two meetings in the second half of the year and may maintain high interest rates for an extended period.
Gold price forecast
Gold also came under pressure as money flowed back into many stock markets after geopolitical risks in Russia eased.
However, the Russia-Ukraine conflict still carries many risks. This is a positive factor for gold.
In addition, many countries reversed their monetary policies from tightening to loosening to revive their economies. These moves also contributed to the rise in prices of many commodities, including gold.
Gold is also still seen as a safe haven when inflation returns.
In the long term, gold is still projected to rise again when the Fed reverses its monetary policy (possibly from 2024), thereby causing the US dollar to weaken.
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