Gold weakens under the pressure of stocks

At 6 am this morning, June 7 (Vietnam time), the world gold price on the Kitco floor traded at 1,839 USD/ounce, down 14 USD/ounce compared to the early hours of the morning.

World gold price decline due to pressure from the stock market increase point.

Investors preferred riskier in the stock trading session at the beginning of the week amid the easing of blockade orders because of the COVID-19 epidemic in China. This helped the stock markets, including the US stock indexes, to move positively.

Investors are waiting for the important data of the week which is the regular monetary policy meeting of the European Central Bank on Thursday. House’s economy forecast, the European Central Bank will come up with plans to tighten monetary policy when inflation in the euro area is “hot”.

Immediately followed by the price index report consumption American May will be released on Friday. The US CPI in May is expected to increase by 8.2% year-on-year, after rising 8.3% in April.

Domestic gold price

At the end of the trading session on June 6, Saigon Jewelry Company listed the price of SJC gold at 68.6 million dong/tael (buying in) and 69.52 million dong/tael (sold out).

DOJI Group listed the gold price at 68.6 million dong/tael (buying in) and 69.5 million dong/tael (sold out).

Gold price forecast

Gold price is currently in a downtrend following technical analysis signals. However, the market also recorded bottom fishing signals.

The next strong resistance level for gold is $1,900/ounce. The nearest resistance is at $1,875/ounce. Meanwhile, the strong support is at $1,800/ounce. Prior to that, a key support level was last week’s low: $1,830.2 an ounce.

Investors are waiting for the policy of the European Central Bank (ECB) at its meeting next Thursday, with the possibility of more tightening decisions. Besides, the US will release the report on the consumer index in May, with an increase over the same period forecasted at 8.2%, compared with 8.3% in April.