Gold price continuously "reverses", probes bottom after more than 3 months to close to 1,900 USD, what opportunities are there for investors?

Gold prices today, June 30, 2023, hit their lowest level in more than three months, recording the third consecutive decline, as major central banks affirmed their "hawkish" stance on monetary policy, aiming to cool down the upward pressure on prices. What do experts think about the gold price trend during this period?

LIVE UPDATE TABLE OF GOLD PRICE TODAY 6/30 AND EXCHANGE RATE TODAY 6/30

1. SJC - Updated: June 29, 2023 10:53 - Website time of supply - ▼ / ▲ Compared to yesterday.
Type	Buy	Sell
SJC 1L, 10L	66,450 ▲50K	67,050 ▲50K
SJC 5c	66,450 ▲50K	67,070 ▲50K
SJC 2c, 1c, 5c	66,450 ▲50K	67,080 ▲50K
SJC 99.99 gold ring 1 chi, 2 chi, 5 chi	55,200 ▼50K	56,200 ▼50K
SJC 99.99 gold ring 0.5 chi	55,200 ▼50K	56,300 ▼50K
Jewelry 99.99%	55,100 ▼50K	55,800 ▼50K
Jewelry 99%	54,048 ▼49K	55,248 ▼49K
Jewelry 68%	36,098 ▼34K	38,098 ▼34K
Jewelry 41.7%	21,421 ▼21K	23,421 ▼21K

The world gold price has continuously dropped to its lowest level since March, at times trading below the sensitive level of 1,900 USD/ounce. The price of each ounce of gold has plummeted by 142.5 USD in the past 2 months. The precious metal has continuously tested the support level above 1,900 USD /ounce, down sharply from 2,050.5 USD /ounce in early May.

Spot gold prices fell about 3% in June 2023. The prospect of higher interest rates has weighed on gold prices, especially as the US dollar has continued to rise, now at a two-week high. Since gold is priced in US dollars, the stronger US dollar has caused foreign investors to turn away from gold.

According to TG&VN at 9:30 p.m. on June 29 (Vietnam time) on Kitco, the gold price was trading at 1,909.80 - 1,910.8 USD/ounce, up 2.4 USD compared to the previous session, after many consecutive sessions of decline . The August gold futures price was last traded at 1,908.90 USD/ounce, down 0.70% on the day.

Gold price today June 30, 2023: Gold price lowest in more than 3 months, gradually falling to 1,900 USD, what opportunities for investors? (Source: Kitco)

Markets are expecting the US Federal Reserve to raise interest rates at its July 2023 meeting, as leaders of the world's leading central banks are aggressively pursuing tighter monetary policy. The next rate hike is expected to take place on July 25 and 26.

Fed Chairman Jerome Powell reaffirmed his hawkish stance at the recent European Central Bank (ECB) Forum, adding to speculation that US interest rates will be higher for longer. This has led to a bearish bias for gold, which is a non-yielding asset. Powell has even reiterated the likelihood of another rate hike this year and has not ruled out raising borrowing costs at a policy meeting scheduled for late July, added OCBC FX strategist Christopher Wong.

The dollar index rose, putting pressure on gold. The gold market also remained under strong selling pressure, largely ignoring the latest economic data - which is believed to have the ability to guide investment decisions.

Domestic gold prices are expected to maintain a stable trend as in recent sessions, and will continue to move sideways after a long period without major fluctuations.

Converted at the USD exchange rate excluding taxes and fees, the world gold price is 12.8 million VND/tael cheaper than the domestic price.

Summary of SJC gold prices at major domestic trading brands at the closing time of the trading session on June 29:

Saigon Jewelry Company listed the price of SJC gold at 66.45 - 67.07 million VND/tael.

Doji Group currently lists SJC gold price at: 66.40 - 67.00 million VND/tael.

Phu Quy Group listed at: 66.45 - 67.05 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: 66.50 - 67.03 million VND/tael; Rong Thang Long gold brand is traded at 55.48 - 56.33 million VND/tael; jewelry gold price is traded at 54.95 - 56.05 million VND/tael.

How do experts predict gold prices?

The overall scenario for gold and precious metals remains challenging, with Powell and European Central Bank (ECB) President Christine Lagarde still preparing for more rate hikes, said analyst Carlo Alberto De Casa at Kinesis Money .

"It would not be surprising if the precious metal lost the $1,900 /ounce mark," said Craig Erlam, a senior market analyst in the UK . He said this is an important price threshold for the precious metal. Gold investors are focusing on this level.

"Gold's appeal has evaporated. Investors are realizing that not only are there more rate hikes this year, but even rate cuts are unlikely. Inflation is even more persistent than expected, and that's bad news for gold," explains Craig Erlam.

While gold is seen as a hedge against inflation, rising interest rates reduce the appeal of non-interest bearing assets such as gold. The opportunity cost of holding gold increases with interest rates, thereby reducing the appeal of the precious metal. Gold is a safe haven that does not pay interest. While the safe haven role of the precious metal has been eroded by the resilience of the US economy. The complicated situation in Russia has also failed to support gold prices.

That said, the $1,900 support zone has proven solid so far, with many traders seeing an increasing likelihood of a recession in 2024, De Casa added.

In the current situation, although investors are not interested in precious metals, experts see the plummeting gold price as an opportunity to buy.

"Now is the best time for investors to buy gold," said Phillip Streible, chief market strategist at Blue Line Futures .

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