Gold price hits rock bottom and “goes far away”

Gold price breaks through $1,900/ounce mark

Last night, in the US market, the world gold price received important but negative news. That is, it broke the important milestone of 1,900 USD/ounce.

Gold prices fell as minutes from the US Federal Reserve's July policy meeting highlighted that policymakers remained divided on the need for more interest rate hikes.

Spot gold fell 0.2% to $1,897.00 an ounce while U.S. gold futures fell 0.4% to $1,928.30.

The dollar index rose 0.2%, making bullion more expensive for overseas buyers.

After several days of struggling, the world gold price has broken through the important milestone of 1,900 USD/ounce and has no stopping point. Meanwhile, the price of SJC gold is still increasing slightly. Illustrative photo

Minutes of the Fed’s July 25-26 meeting showed that “some participants” cited risks to the economy from pushing interest rates too far even as “most” policymakers continued to prioritize the fight against inflation, according to the minutes.

“The road seems to be less smooth for gold right now,” commented Everett Millman, chief market analyst at Gainesville Coins.

Gold prices have fallen more than 8%, or more than $170 an ounce, since climbing above the key $2,000 level in early May, as rising U.S. Treasury yields and a strong dollar have taken the shine off non-yielding bullion.

Indicating investor sentiment, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell to their lowest since January 2020.

Rising US interest rates increase the opportunity cost of holding gold.

“The main factor slowing gold’s decline has been a lack of confidence in the health of the global economy with the latest data from China adding to that negative sentiment,” said Rupert Rowling, market analyst at Kinesis Money.

Silver fell 0.2% to $22.47 an ounce, platinum fell 0.2% to $886.55 and palladium fell 2.2% to $1,208.46.

At this morning's trading session in the Asian market, the world gold price was trading at: 1,891.9 USD/ounce.

SJC gold price remains strong

In early May 2023, the world gold price set a record when it surpassed 2,055 USD/ounce. At that time, the SJC gold price was only 67.2 million VND/tael for selling and 66.60 million VND/tael for buying.

Currently, while the world gold price has fallen sharply, breaking the bottom of 1,900 USD/ounce, the SJC gold price is still strong, trading at a higher level than the "peak" in early May.

Specifically, despite last night's sharp drop in world gold prices, SJC gold prices not only did not decrease but also increased slightly.

At Bao Tin Minh Chau Jewelry Company, SJC gold price is traded at: 67.05 million VND/tael - 67.57 million VND/tael, up 50,000 VND/tael for buying and keeping the selling price unchanged compared to the end of yesterday.

Saigon Jewelry Company – SJC, SJC gold price is listed at: 66.95 million VND/tael – 67.55 million VND/tael, unchanged from the end of yesterday. At Phu Nhuan Jewelry Company, SJC gold price is traded at: 66.90 million VND/tael – 67.50 million VND/tael. SJC gold price at Doji Group is bought and sold at: 66.85 million VND/tael – 67.60 million VND/tael.

Meanwhile, non-SJC gold prices decreased significantly.

At Bao Tin Minh Chau, the price of Thang Long Dragon gold is traded at: 56.18 million VND/tael - 57.03 million VND/tael, down 130,000 VND/tael in both buying and selling directions compared to the end of yesterday.

At PNJ Company, PNJ gold price decreased by 100,000 VND/tael to 55.80 million VND/tael - 56.80 million VND/tael.

Currently, both world gold price and SJC gold price are much more expensive than world gold price.

At the world gold price of 1,891.9 USD/ounce, the converted price of SJC gold is about 54.72 million VND/tael.

Thus, the price of SJC gold is nearly 12.9 million VND/tael more expensive than the world gold price. The difference between the price of non-SJC gold and the world gold price is 2.08 million VND/tael. This too high difference is a risk for gold buyers at this time.

Source: https://www.congluan.vn/gia-vang-thung-day-di-ve-noi-xa-lam-post260826.html