Gold continues to recover, despite soaring USD

Domestic gold price

At the end of the trading session on May 31, 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 : 66,450,000 VND/tael - 67,070,000 VND/tael
Doji Hanoi: 66,450,000 VND/tael - 67,050,000 VND/tael
SJC HCMC: 66,450,000 VND/tael - 67,050,000 VND/tael
Doji HCMC: 66,500,000 VND/tael - 67,000,000 VND/tael

International gold price

On the night of May 31 (Vietnam time), the world spot gold price stood at around 1,962 USD/ounce. Gold for August delivery on the Comex New York floor was at 1,980 USD/ounce.

The world gold price on the night of May 31 was about 7.6% higher (138 USD/ounce) than at the beginning of 2023. World gold converted to the bank USD price was 56.5 million VND/tael, including taxes and fees, about 10.5 million VND/tael lower than the domestic gold price as of the end of the afternoon session on May 31.

The United States is close to reaching a deal to raise the debt ceiling. Late last week, President Joe Biden and House Speaker Kevin McCarthy reached a tentative agreement to raise the debt ceiling, ending a long-running impasse that threatened to send the US government into default.

*Gold prices increased sharply today. (Photo: KC)*

Both houses of the US Congress are expected to vote on the new deal this week after overcoming final hurdles.

US bond yields are gradually decreasing, thereby positively affecting gold prices.

However, the gold price increase was hindered by the continued rise of the USD. The DXY index - measuring the greenback's volatility against a basket of six major currencies in the world - increased from 104 points to 104.4 points.

A survey by the World Gold Council (WGC) shows that central banks' interest in gold also contributes to the increase in the price of precious metals.

Gold Price Forecast

Although forecast to be in a long-term uptrend, gold is currently under selling pressure as the USD is supported by signals that the US Federal Reserve (Fed) will raise interest rates at its June meeting.

Recent positive US economic data has investors betting that the Fed could raise interest rates next month.

Of which, US GDP in the first 3 months of the year increased by 1.3%, higher than the initial estimate of 1.1%.

Futures traders expect about a 66% chance of a quarter-point rate hike in June, according to the CME FedWatch Tool. That would mark the Fed's 11th consecutive rate hike.

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