Gold price is "overwhelmed", the 1,900 USD/ounce mark is shaky, buying gold rings results in heavy losses

Gold prices today, June 29, 2023, continued to decline and hovered near a three-month low as they were "overwhelmed" by strong US economic data. Experts say that in the current environment, the gold market is at risk of falling below $1,900/ounce.

LIVE UPDATE TABLE OF GOLD PRICE TODAY 6/29 and EXCHANGE RATE TODAY 6/29

1. SJC - Updated: June 28, 2023 15:07 - Website supply time - ▼ / ▲ Compared to yesterday.
Type	Buy	Sell
SJC 1L, 10L	66,400	67,000
SJC 5c	66,400	67,020
SJC 2c, 1c, 5 phan	66,400	67,030
SJC 99.99 gold ring 1 chi, 2 chi, 5 chi	55,250	56,250
SJC 99.99 gold ring 0.5 chi	55,250	56,350
Jewelry 99.99%	55,150	55,850
Jewelry 99%	54,097	55,297
Jewelry 68%	36,132	38,132
Jewelry 41.7%	21,442	23,442

World gold prices fell sharply below the threshold of 1,910 USD /ounce in the trading session on June 28. This is the lowest price of the precious metal since mid-March.

According to TG&VN at 7:00 p.m. on June 28, the world gold price on the Kitco exchange was at 1,906.8 - 1,907.8 USD/ounce, down 6.9 USD compared to the previous trading session.

In Asia, precious metals prices “anchored” near a three-month low on June 28 after strong US economic data “overshadowed” gold’s long-standing status as a safe-haven asset. Meanwhile, traders assessed a speech by the US Federal Reserve Chairman (Fed) and more clues about interest rate hikes.

On the afternoon of June 28, spot gold was trading at $1,912.86 an ounce, near its lowest level since March 16 at $1,910 an ounce. US gold futures fell 0.1% to $1,921.80 an ounce.

Data on June 27 showed the world's largest economy remained solid, which could lead to more interest rate hikes by the Fed to tame inflation.

Gold prices are heading for a second straight monthly decline. The precious metal’s safe-haven status has also been eroded by the resilience of the U.S. economy. Even the complicated situation in Russia has failed to support gold prices.

Last year, precious metal prices skyrocketed after Russia launched a military campaign in Ukraine.

Investors will be closely watching the Personal Consumption Expenditures (PCE) Price Index for May 2023 among other data.

Gold price today June 29, 2023: Gold price is 'overwhelmed', the 1,900 USD/ounce mark is shaky, buying gold rings causes heavy losses. (Source: Forbes)

Domestic gold prices continued to record a sideways trend for SJC gold bars and a sharp decrease for gold rings in the morning trading session on June 28. In the afternoon session of the same day, SJC gold increased slightly by VND50,000/tael at some brands.

Recorded at 3:00 p.m., SJC gold price in Hanoi market was listed by Saigon Jewelry Company at 66.4 - 67.02 million VND/tael (buy - sell).

Also at the above Company, 99.99% gold ring items of 1-5 chi are currently listed at 55.3 - 56.3 million/tael (buy - sell), down 150,000 VND compared to the previous session. 99.99% gold ring of half chi type of the national gold brand also recorded a corresponding decrease, currently at 55.3 - 56.4 million/tael.

Thus, compared to the peak price more than a month ago (May 16), the selling price of each tael of gold ring at SJC has decreased by nearly 1.5 million VND. This development, combined with the difference in buying and selling prices offered by SJC, has caused buyers of SJC gold rings more than a month ago to now suffer a loss of nearly 2.5 million VND/tael.

Summary of SJC gold prices at major domestic trading brands at the closing time of June 28:

Saigon Jewelry Company listed the price of SJC gold at 66.4 - 67.02 million VND/tael.

Doji Group currently lists the price of SJC gold at: 66.35 - 66.95 million VND/tael.

Phu Quy Group listed at: 66.4 - 67.0 million VND/tael.

PNJ system listed at: 66.45 - 66.95 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at: 66.45 - 66.93 million VND/tael; Rong Thang Long gold brand is traded at 55.52 - 56.37 million VND/tael; jewelry gold price is traded at 55.00 - 56.10 million VND/tael.

Gold price at risk of losing the $1,900/ounce mark

There are growing signs that the U.S. may avoid a recession, which could see gold prices fall closer to $1,850 an ounce this year and interest rates stay higher for a little longer than the market expects, said Harshal Barot, senior adviser at Metals Focus.

Investors are also pessimistic about the scenario of the Fed cutting interest rates this year. The possibility of the Fed cutting the operating interest rate to 4.75-5% is currently priced at only 4.7%.

According to CME's Fedwatch tool, investors are betting on a 77% chance of a rate hike in July 2023, with a rate cut from March 2024 onwards, and most major US banks expect a 25 basis point rate hike.

Investors are focusing on Mr. Powell’s upcoming speech, along with a batch of important economic data released on June 29.

"Until then, the gold market will be sideways and trading sluggishly, unless there is new news," said Bob Haberkorn, senior market strategist at RJO Futures.

According to Mr. Edward Moya, senior market analyst at OANDA, in the current environment, the gold market is at risk of falling below $1,900/ounce.

“The situation has been quite bad for gold since the beginning of May,” the expert emphasized.

Source