Not much flourishing, gold recovered slightly

Stock market unstable and high crude oil price are strong support factors for gold price, however, precious metal has not really prospered.

Global stock markets are mixed. While the European stock market fell, the indexes US stocks still at low levels, technical signs suggest a short term bottom has been formed.

In Europe, the euro area’s first quarter GDP was reported to have grown by 0.6 percent compared to the fourth quarter of 2021. While last year, Q1 GDP increased by 5.4%.

In other information, the World Bank (WB) lowered its growth forecast for the economy economy worldwide this year down 2.9%. Previously, the World Bank’s forecast in January was an increase of 4.1% and in April it was lowered to 3.2%.

The World Bank also warned that inflation worldwide will be above average in the next few years and global economic growth will be just below average.

Domestic gold price

At the end of the session on June 8, Saigon Jewelry Company listed the price of SJC gold at 68.7 million dong/tael (buying in) and 69.62 million dong/tael (sold out).

DOJI Group listed the gold price at 68.65 million dong/tael (buying in) and 69.55 million dong/tael (sold out).

Gold price forecast

Gold is forecasted 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.