Domestic gold price
At the end of last week's trading session, the price of 9999 gold bars at SJC Ho Chi Minh City was VND66.5 million/tael (buy) and VND67.15 million/tael (sell). SJC Hanoi listed at VND66.55 million/tael (buy) and VND67.17 million/tael (sell).
Doji Hanoi listed at 66.45 million VND/tael (buy) and 67.05 million VND/tael (sell). Doji Ho Chi Minh City bought SJC gold at 66.5 million VND/tael and sold at 67 million VND/tael.
If the Fed stops raising interest rates, gold prices could reach $2,000/ounce. (Photo: Kitco)
International gold price
On the world market, spot gold price on June 10 (Vietnam time) was trading at 1,960 USD/ounce.
The US Federal Reserve (Fed) is expected to keep interest rates unchanged at 5.25% after the FOMC meeting on June 13-14. The CME FedWatch tool predicts a 72% chance that the Fed will pause its rate hikes. If so, this would be the Fed's first decision to pause rate hikes since January 2022.
Edward Moya, senior market analyst at OANDA, told Kitco News that a pause in interest rate hikes would be positive for gold. If that happens, gold could break $1,950 an ounce and rally to $2,000 an ounce.
On the other hand, according to Mr. Moya, if the Fed continues to raise interest rates, the gold market will witness a strong sell-off, causing gold to have a deep decline.
The big macro event that investors are closely watching is the US consumer price index (CPI) report for May, which is due on June 14 (Vietnam time), a day before the Fed makes its next monetary policy decision. Some analysts see the Fed's decision as depending on that inflation report.
Gold Price Forecast
The gold market has bottomed at $1,950 an ounce, which is solid support, RJO Futures senior market strategist Frank Cholly told Kitco News.
Gold is likely to fall in the summer months as investor spending cycles slow, said Standard Chartered precious metals analyst Suki Cooper.
In addition to Suki Cooper, analysts at Standard Chartered are forecasting an average gold price of $1,975/ounce in Q2 and $1,925/ounce in Q3.
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