Gold price goes straight up to 2,000 USD, USD hits rock bottom, will SJC gold follow the world trend?

Gold prices today, July 21, 2023, increased rapidly, approaching a 9-week peak. In the market, the strong weakening of the USD and the cooling of inflation have supported gold prices. There are many speculations that the Fed may soon stop its interest rate hike cycle and the world gold price may increase to 2,000 USD/ounce.

LIVE UPDATE TABLE OF GOLD PRICE TODAY 7/21 AND EXCHANGE RATE TODAY 7/21

[WIDGET_GOLD_RATE:::PNJ:]

World gold prices rose to their highest in nearly two months, due to a weakening US dollar and the prospect that the US Federal Reserve (Fed) will soon stop its monetary tightening cycle at its meeting next week.

The USDX index, which measures the greenback's strength against a basket of major currencies, fell sharply to near its lowest level in more than a year, making gold more expensive for overseas buyers, while lower interest rates tend to benefit gold because they reduce the opportunity cost of holding non-yielding assets.

Gold prices have risen about 5% since late June, when they hit a more than three-month low, with recent gains largely driven by US economic data that supported the view that the Fed will raise interest rates by 25 basis points on July 26, the final hike of the current tightening cycle, and keep rates in a range of 5.25%-5.5% through 2023.

According to TG&VN, at 9:15 p.m. on July 20 (Vietnam time), the gold price traded on Kitco was at $1,972.30/ounce, after many consecutive increases, it decreased slightly by $5.2 compared to the previous session. The August gold futures price was last traded at $1,978/ounce, down 0.14% on the day.

Giá vàng hôm nay 21/7/2023: Giá vàng thẳng tiến lên mức đỉnh,

Gold price today July 21, 2023: Gold price goes straight to the peak, USD hits bottom, will SJC gold follow the world trend?

Domestic gold prices followed the upward trend of the world market. However, while the price of SJC gold fluctuated slightly and remained above VND67 million/tael, the price of jewelry gold fluctuated more strongly, increasing by VND40,000 - 50,000/tael at trading systems.

With domestic gold prices fluctuating slightly and world gold prices listed at Kitco at 1,975.6 USD/ounce (equivalent to nearly 56.8 million VND/tael if converted according to the USD exchange rate at Vietcombank, excluding taxes and fees), the difference between domestic and world gold prices is currently over 10 million VND/tael.

Summary of SJC gold prices at major domestic trading brands at the closing time of last weekend's trading session (July 20).

Saigon Jewelry Company listed the price of SJC gold at 66.60 - 67.22 million VND/tael.

Doji Group currently lists the price of SJC gold at: 66.55 - 67.25 million VND/tael.

Phu Quy Group listed at: 66.45 - 67.05 million VND/tael.

PNJ system listed at: 66.70 - 67.20 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at: 66.60 - 67.20 million VND/tael; Rong Thang Long gold brand is traded at 56.31 - 57.16 million VND/tael; jewelry gold price is traded at 55.70 - 56.90 million VND/tael.

Gold Price Forecast: Will Gold Price Soar to $2,000?

"Clearly the downward adjustment of the USD has helped gold increase in the short term, the market is aiming for the important psychological mark of 2,000 USD," independent analyst Ross Norman predicted.

Gold continued to test resistance around $1,980 an ounce but failed to find any fresh upside momentum as the Philadelphia Fed said its manufacturing sector remained stuck in a narrow range. Its manufacturing business outlook for July was largely unchanged, with only a very slight increase. This was the 11th consecutive month that manufacturing remained in negative territory. Gold did not react strongly to this latest disappointing economic data.

Disappointing US economic data and weak inflation make it likely that the Fed will end its tightening cycle after its monetary policy meeting next week, according to some market analysts.

Many investors now expect the Fed to continue raising interest rates one last time at its meeting on July 26, with an increase of 0.25 basis points, and then keep the interest rate unchanged until inflation falls to the target of 2%. Thereby, bringing the basic interest rate to 5.0% - 5.25%.

Gold prices are always sensitive to US interest rate adjustments. Market analyst Jim Wyckoff of Kitco said that gold prices could rise to $ 2,000 / ounce if the Fed stops its interest rate hike cycle after another increase this month.

Speaking about the Fed's monetary policy, Ryan McIntyre, managing partner at Sprott Inc., said that even if the July rate hike is not the last, the tightening cycle is close enough to the end of the rate hike cycle. He said that with the large debt level and shrinking money supply, the Fed cannot raise interest rates any higher. This is a favorable environment for this precious metal.

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