Gold unexpectedly plummeted.

Domestic gold prices

At the close of trading on June 20th, 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 : 66,500,000 VND/ounce - 67,120,000 VND/ounce
Doji Hanoi: 66,450,000 VND/ounce - 67,050,000 VND/ounce
SJC Ho Chi Minh City: 66,500,000 VND/ounce - 67,100,000 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 20th (Vietnam time), the spot price of gold in the world market stood around $1,937 per ounce. Gold futures for August delivery on the Comex New York exchange were at $1,959 per ounce.

World gold prices on the night of June 20th were approximately 6.2% (US$113/ounce) higher than at the beginning of 2023. Converted using the bank's USD exchange rate, world gold was priced at VND 55.7 million/ounce, including taxes and fees, which is about VND 11.3 million/ounce lower than domestic gold prices as of the end of the trading session on June 20th.

Gold prices on the international market unexpectedly plummeted amid a slight rise in the US dollar and investor caution regarding statements from Federal Reserve Chairman Jerome Powell this week.

*Gold prices fell sharply today, June 21st. (Photo: KC)*

According to the plan, Jerome Powell will testify for two days, June 21-22, before the U.S. House of Representatives and Senate.

Many recent forecasts suggest that upcoming macroeconomic data could have a significant impact on the gold market. Previously, Powell stated that the US central bank's next move would depend on economic data.

Gold price forecast

The Fed's pause on interest rate hikes at its June 13-14 meeting was a positive sign for precious metals. However, this was merely a temporary pause by the agency to assess the impact of the previous 10 interest rate hikes (a total increase of 500 basis points, from 0-0.25% to 5-5.25% per year).

The dot plot (showing policymakers' forecasts for future interest rate directions) indicates that the Fed expects interest rates to be higher. A majority of Fed officials expect the federal funds rate to reach 5.6% by the end of this year.

Therefore, in the remaining four meetings this year, the FOMC could raise interest rates two more times. This also means that the Fed will only begin lowering interest rates in 2024, if this expectation remains unchanged.

In fact, technically, the failure of gold to break through the $1,970/ounce level has increased selling pressure. This could lead to a deeper correction.

Conversely, many organizations still forecast that gold will appreciate in the long term as the Fed reverses its monetary policy. Gold could break through the $2,000/ounce mark in the near future.

Gold remains a viable option as European and Asian stocks fall and China decides to lower interest rates amid a slow economic recovery.

Gold prices today, June 20th: Slightly lower, awaiting signals from the Fed. Gold prices on the world market today, June 20th, saw a slight decrease, awaiting news that the US Federal Reserve (Fed) may raise interest rates two more times this year.

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