Just skyrocketed, gold suddenly fell sharply

Domestic gold price

At the end of the trading session on June 7, 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: 66,400,000 VND/tael - 67,000,000 VND/tael
SJC HCMC: 66,450,000 VND/tael - 67,050,000 VND/tael
Doji HCMC: 66,450,000 VND/tael - 66,950,000 VND/tael

International gold price

On the night of June 7 (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 1,979 USD/ounce.

The world gold price on the night of June 7 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 June 7.

*Gold prices continue to fluctuate strongly today. (Photo: KC)*

Gold prices have increased sharply at times amid the unpredictable developments of the Russia-Ukraine conflict after the collapse of the strategic Kakhovka hydroelectric dam on the Dnieper River in Kherson province, southern Ukraine on June 6. The dam collapsed at the exact time Ukraine was preparing to launch a counterattack.

The flood impact is expected to last not just for weeks or months, but for a long time. This is a very large dam, one of the largest reservoirs in the world. This will affect food prices around the world.

Geopolitical instability is often a factor that pushes gold prices up.

Gold also increased in price as the US dollar cooled down.

On June 13, the US Federal Reserve (Fed) will begin its Federal Open Market Committee (FOMC) meeting. This agency will make a decision on interest rates with the goal of controlling inflation and increasing employment opportunities for workers.

Gold Price Forecast

Currently, core inflation in the US remains high. This is the reason why the market is betting on the possibility of the Fed raising interest rates for the 11th consecutive time. This has caused the USD to increase sharply recently. The DXY index is still around the 104 point mark.

However, recently, the market has had some predictions about the possibility that the Fed will stop raising interest rates after 10 consecutive increases. Many warnings show that the recent record interest rate hike by the Fed could have long-term effects on the world's number 1 economy.

A pause in a rate hike to further monitor the impact on the economy is seen as necessary.

This is the factor that causes the USD to stagnate and thereby creates conditions for gold to rise.

Source