Gold price increases, 'sharks' reduce buying

Gold demand is set to fall 9% as central banks cut back on purchases after a year of record net purchases, according to Metals Focus' 2023 gold outlook report. The gold market faces downward pressure in the second half of 2023.

After net purchases, central banks will reduce demand, while other “sharks” also have modest buying demand, Metals Focus said.

Meanwhile, gold supply is forecast to increase by 2% due to higher mining and recycling output, returning the gold market to a surplus of 500 tonnes this year.

Central banks cut gold purchases. (Photo: Kitco)

Gold prices are up about 7% year-to-date after a strong rally on expectations the Federal Reserve is nearing the end of its tightening cycle and may even cut interest rates by year-end.

On the world market, spot gold price on June 10 (Vietnam time) was trading at 1,960 USD/ounce.

Domestic gold prices fluctuate little

Domestic gold prices only increased slightly last week, in contrast to strong fluctuations in the world market.

Opening the first session of the week on June 5, the price of 9999 gold bars at SJC Ho Chi Minh City was 66.4 million VND/tael (buy) and 67 million VND/tael (sell). SJC Hanoi listed at 66.4 million VND/tael (buy) and 67.02 million VND/tael (sell).

Doji Hanoi listed at 66.35 million VND/tael (buy) and 66.95 million VND/tael (sell). Doji Ho Chi Minh City bought SJC gold at 66.45 million VND/tael and sold at 66.95 million VND/tael.

On June 6-8, domestic gold prices increased and decreased within a range of 100,000 VND in both directions.

At the end of the trading session on June 10, 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.

Weekly, gold price at SJC increased by 100,000 VND/tael (buy) and 150,000 VND/tael (sell). Meanwhile, gold price at Doji increased by 100,000 VND/tael.

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