Gold prices were trading in a narrow range on the afternoon of June 6, as investors sought clarity on the US Federal Reserve’s policy outlook, which appeared to be rather vague. Meanwhile, the US dollar index was steady, but near a two-month high (since May 31), making gold cheaper for investors holding other currencies.
The yield on the benchmark 10-year bond fell to 3.662%, improving the opportunity cost of holding non-yielding assets such as gold.
According to TG&VN at 9:25 p.m. on June 6 on Kitco, the gold price was trading at 1,960.70 USD/ounce, down 1.1 USD compared to the previous session . Last time, the gold price for August delivery increased by 6.50 USD to 1,980.70 USD/ounce.
Many analysts believe that gold has not found its next direction. However, the main driver of gold is still the Fed's monetary policy stance. More and more investors expect the Fed to pause its tightening policy at its upcoming meeting on June 13-14.
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| Gold price today June 7, 2023: Low gold price, high USD, market on guard against Fed 'turnaround'; SJC gold hits 67 million VND. (Source: Kitco) |
Domestic gold prices plummeted in the last session of June 6, unable to maintain the upward momentum of the morning session. As a result, SJC gold prices fell by about 100,000 - 250,000 VND/tael.
Summary of SJC gold prices at major domestic trading brands at the closing time of last week (June 6):
Saigon Jewelry Company listed the price of SJC gold at 66.40 - 67.02 million VND/tael.
Doji Group currently lists SJC gold price at: 66.40 - 67.00 million VND/tael.
Phu Quy Group listed at: 66.40 - 67.00 million VND/tael.
PNJ system listed at: 66.60 - 67.10 million VND/tael.
SJC gold price at Bao Tin Minh Chau is listed at: 66.42 - 66.98 million VND/tael; Rong Thang Long gold brand is traded at 55.52 - 56.42 million VND/tael; jewelry gold price is traded at 55.15 - 56.25 million VND/tael.
Converting world gold price according to foreign exchange rate at Vietcombank: 1 USD = 23,670 VND, world gold price is equivalent to 55.88 million VND/tael, 11.37 million VND/tael lower than SJC gold selling price at the same time.
Gold Price Forecast
Meanwhile, the precious metals market seems to be still waiting for the US Consumer Price Index (CPI) data to be released on Tuesday (June 13). Considering that the US data this week does not have any major impact, the gold price will not fluctuate much. DailyFX analyst Warren Venketas commented that the gold price will fluctuate in the range of 1,980-1,985 USD/ounce.
Craig Erlam, senior market analyst at OANDA , said there is still considerable uncertainty about what the Fed will do, with non-farm payrolls actually strong but unemployment higher and ISM data showing weakness across industries. It all seems to hinge on the CPI data. If the report shows inflation remains strong, it will end any hopes of a pause in monetary tightening, while the opposite will give the market confidence that the Fed will pause its rate hikes this month.
A new development has highlighted the uncertainty of the global economy. A major dam and power plant in Ukraine has blown up, sending markets into a tailspin. Markets will be watching this situation closely over the next few days.
Analysts predict that the gold market is at risk of falling again before trending up again. Expert Michael Boutros shared that gold will tend to increase slightly in the near future. However, in the short term, gold prices are likely to reverse to a deeper level, from about $1,926/ounce to $1,881/ounce.
The World Gold Council (WCG) has just released its annual survey of central banks’ gold reserves. Of the 59 central banks surveyed, about 24% said they plan to buy gold in the next 12 months.
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