World gold has the worst week in more than a month, SJC gold still increases

SJC gold increased slightly, buyers still suffered losses

This week, the focus of all markets is the US Federal Reserve’s (FED) interest rate hike. While the world is “boiling”, the price of SJC gold is quite calm, increasing very slightly step by step, making up for the slight decrease at the beginning of the week. Overall for the week, the price of SJC gold increased by about 60,000 VND/tael, equivalent to 0.09% compared to the end of last week.

Closing this week, Bao Tin Minh Chau Jewelry Company "fixed" the price of SJC gold at: 66.60 million VND/tael - 67.23 million VND/tael. The price of SJC gold at Phu Nhuan Jewelry Company is trading at: 66.60 million VND/tael - 67.20 million VND/tael.

SJC gold price at Saigon Jewelry Company – SCJ and Doji Group stopped at 66.55 million VND/tael – 67.25 million VND/tael.

World gold has the worst week in more than a month, SJC gold still increases 1 — Although world gold had its worst week in over a month, SJC gold price still increased slightly. Illustrative photo

Not only did the SJC gold price fluctuate slowly, the non-SJC gold price also remained stable. In the last session of the week, at Bao Tin Minh Chau, the Thang Long Dragon gold price was bought and sold at: 56.23 million VND/tael - 57.08 million VND/tael. At Phu Nhuan, the PNJ gold price was traded at: 56.20 million VND/tael - 57.20 million VND/tael.

Although the gold price is stable, if investors buy gold at the beginning of the week, they will have suffered a significant loss by the end of the week because the difference between the buying and selling prices in the domestic market is relatively large.

Specifically, the price of SJC gold can cause buyers to lose about VND500,000/tael. The loss for non-SJC gold is about VND850,000/tael.

World gold has worst week in more than a month

Domestic gold prices remained stable despite strong fluctuations in world gold prices last week.

In the final trading session of the week, in the US market, the world gold price recovered somewhat as the dollar fell, but still headed for the worst week in five weeks after data showing that the US economy is recovering has reduced the possibility of betting on the US dovish monetary policy.

Spot gold rose 0.6% to $1,956.69 an ounce, up from its lowest since July 12. U.S. gold futures rose 0.5% to $1,955.70. Earlier on Thursday, gold prices nearly hit a low of just $1,940 an ounce.

Bullion was on track for a 0.2% weekly decline, its biggest daily decline on Thursday, after data showed U.S. gross domestic product growth in the second quarter was faster than expected.

The data contributed to rising expectations about how long US interest rates would stay high, boosting the dollar and, in turn, sending gold prices sharply lower, said Edward Gardner, commodities economist at Capital Economics.

Higher interest rates and Treasury yields increase the opportunity cost of holding non-yielding gold.

But the European Central Bank (ECB), while delivering its ninth straight interest rate hike on Thursday, also raised the possibility of a pause in September.

“Overall, a dovish ECB should be positive news for gold. But in this case, it has created a rapid rally in the US dollar,” Carlo Alberto De Casa, market analyst at Kinesis Money, wrote in a note.

The dollar gave up gains on Friday, but was still on track for its second straight weekly gain.

The focus now turns to the June personal consumption expenditures (PCE) index, the Fed's preferred inflation gauge, due at 1230 GMT.

“If we see a lower-than-expected PCE number, that could lead to lower-than-expected interest rates in the future and that could give gold a little bit of a boost,” Gardner noted.

Spot silver rose 0.7% to $24.31, platinum rose 0.4% to $939.76 and palladium fell 0.4% to $1,235.22, all set for weekly losses.

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