Domestic gold price
At the end of the trading session on May 23, 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: 66,500,000 VND/tael - 67,050,000 VND/tael
SJC HCMC: 66,550,000 VND/tael - 67,150,000 VND/tael
Doji HCMC: 66,550,000 VND/tael - 67,050,000 VND/tael
International gold price
On the night of May 23 (Vietnam time), the world spot gold price dropped to 1,973 USD/ounce. Gold for June delivery on the Comex New York floor was at 1,975 USD/ounce.
The world gold price on the night of May 23 was about 8.2% higher (149 USD/ounce) than at the beginning of 2023. World gold converted to the bank USD price was 56.8 million VND/tael, including taxes and fees, about 10.3 million VND/tael lower than the domestic gold price as of the end of the afternoon session on May 23.
Gold rose sharply at the beginning of the trading session on the US market after an earlier decline on the European market, at times approaching the threshold of 1,950 USD/ounce.
Bottom-fishing demand increased rapidly after gold lost nearly $100/ounce in the past week, while the US greenback rapidly increased in value again.
Gold prices rose again as investors still bet that in the medium and long term, the US dollar will depreciate as the US Federal Reserve (Fed) will enter a period of monetary easing after 10 consecutive interest rate hikes in the past 14 months.
In fact, positive news about the real estate market, including good data on the number of new homes sold in the US, has made investors worry about the possibility that the Fed will keep interest rates high for an extended period to fight inflation. However, the sharp decline in gold has stimulated money flows.
In addition, information about the US manufacturing PMI cooling down in May, down to 48.5 points, has made many people believe that the Fed will not raise interest rates for the 11th time in June and may soon reverse monetary policy.
Gold Price Forecast
Although it is expected to increase in the long term, gold is currently under pressure from a stronger USD. Currently, the greenback is still on an upward trend following stable US macroeconomic data. Some forecasts suggest that the Fed may still raise interest rates.
The CME FedWatch tool shows that there is a more than 40% chance that the Fed will raise interest rates by another 25 basis points at its June meeting. Previously, almost the entire market predicted that the agency would pause interest rate hikes.
However, gold price movements also depend on the outcome of negotiations on US public debt. A US debt default, if it occurs before the next Fed meeting, could affect monetary policy decisions.
Gold is forecast to rise back to the threshold of 1,990-2,000 USD/ounce if instability occurs.
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