Fear of recession, gold fluctuates strongly

Domestic gold price

At the end of the trading session on June 8, 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: 68.70 million VND/tael – 69.62 million VND/tael

Doji Hanoi: 68.65 million VND/tael – 69.55 million VND/tael

SJC HCMC: 68.70 million VND/tael – 69.60 million VND/tael

Doji Ho Chi Minh City: 68.90 million VND/tael – 69.60 million VND/tael

SJC Da Nang: 68.70 million VND/tael – 69.62 million VND/tael

Doji Da Nang: 68.90 million VND/tael – 69.60 million VND/tael

International gold price

On the night of June 8 (Vietnam time), the world spot gold price stood around $1,853 per ounce. Gold for August delivery on the Comex New York exchange was at $1,854 per ounce.

The world gold price on the night of June 8 was about 2.2% lower (42 USD/ounce) than in early 2021. World gold converted to USD bank price was 51.9 million VND/tael, excluding tax. and fees, about 17.7 million VND/tael lower than domestic gold price until late afternoon session 8/6.

Gold prices in the international market fluctuated strongly according to the movements of the USD, but the general trend was to recover.

The DXY index – a measure of the dollar’s volatility against a basket of 6 major currencies – fell from 102.8 points to 102.2 points.

Gold’s price increased because the commodity closely related to gold, oil, remained at a high level: around the threshold of 120 USD/barrel.

Gold rose after the World Bank (WB) lowered its forecast for world economic growth to 2.9% from 4.1% forecast in January. Global economic growth is forecast around the same level. during the period 2023-2024, while inflation remained above target in most economies because of the risk of inflation stagnation.

The World Bank warned that many countries could fall into recession when their economies fell into the same inflationary stagflation as they did in the 1970s.

According to the World Bank, Russian-Ukrainian war and the resulting increase in commodity prices has dealt a blow to an economy already weakened by the Covid-19 pandemic. In addition, the blockade decisions in China have aggravated supply chain disruptions.

However, the gold price is still stuck at the threshold of 1,850 USD/ounce.

Gold price forecast

Gold in a downtrend. However, the bottom-fishing force of gold and the demand from the central banks of other countries have supported the precious metal not to decrease deeply in recent times. Besides, gold is supported quite strongly at 1,830 USD/ounce.

According to the World Gold Council (WGC), the central banks of many countries have boosted gold in recent times when the price dropped and inflation increased.

Many recent forecasts show that the economies of many countries face the risk of recession. Uncertainty keeps gold as a safe bet.

V. Minh

Gold price today June 8: USD increased strongly, gold gained momentumGold price today 8/6 on the international market has not yet escaped the downtrend when the selling force usually increases strongly when the gold price recovers. The dollar’s rebound is a negative factor for precious metals.