Gold bounces up after a drop

Domestic gold price

Open the market on 2/6, SJC’s gold price of 9999 today in Hanoi increased by 200 thousand dong in the buying afternoon and by 100,000 dong in the selling afternoon compared to the end of yesterday’s session. Specifically, at 9:30 am on June 2, 9999 gold was traded by Doji Jewelry Group and SJC as follows:

SJC and DOJI gold price list updated at 9:30 am on 2/6

At the end of trading session 1/6, the domestic gold price of 9999 was listed by SJC and Doji Jewelry Group in the order of buying and selling as follows:

SJC Hanoi: 68.30 million VND/tael – 69.32 million VND/tael

Doji Hanoi: 68.25 million VND/tael – 69.15 million VND/tael

SJC HCMC: 68.30 million VND/tael – 69.30 million VND/tael

Doji Ho Chi Minh City: 68.35 million VND/tael – 69.05 million VND/tael

International gold price

Until 9:30 am today (June 2, Vietnam time), world spot gold price stood around the threshold of 1,844.8 USD/ounce, up 2.8 USD/ounce compared to last night. Gold futures for July delivery on Comex New York were at $1,849 per ounce, up $6 per ounce compared to last night.

On the night of June 1 (Vietnam time), the world spot gold price stood around $1,842 per ounce. Gold for August delivery on the Comex New York exchange was at $1,843 per ounce.

The world gold price on the night of June 1 was about 2.8% lower (US$53/ounce) compared to the beginning of 2021. World gold converted to bank dollars was priced at VND51.6 million/tael, excluding tax. and fees, about 17.7 million dong/tael lower than the domestic gold price as of late afternoon session 1/6.

Gold price in the international market rebounded after falling deeply below the threshold of 1,850 USD/ounce. The demand to catch the bottom and buy to offset the short selling orders increased sharply.

The price of precious metals increased quite quickly after plunging from above $1,850/ounce to below $1,830/ounce. However, the price has yet to return above the important psychological level of $1,850 per ounce.

Bottom-fishing demand increased rapidly and thereby pushed buying force to cover short-selling orders.

Gold rose also due to low US Treasury yields in the first session of the month.

However, the uptrend of gold was halted when the USD turned to appreciate.

The DXY index – which measures the volatility of the greenback against six major currencies in the world – rose to 102.4 points.

Thus, the price of gold fluctuates very strongly and is under great pressure, contrary to the forecast of most experts that gold will increase this week.

Gold price forecast

Despite strong volatility and a downward bias this week, the precious metal’s movements are in line with the indicator on the 200-day moving average.

In the long run, gold price still received a lot of support to increase the price, especially the USD has peaked and gradually weakened.

Gold is also supported by uncertainties in Europe. The European Union (EU) has just made a decision to cut most of its oil imports from Russia by the end of 2022 due to the country’s military conflict with Ukraine.

The commodity that has a close relationship with gold is oil, which sometimes jumps to nearly $120/barrel.

V. Minh