Gold price suddenly retreats to the "backstage", SJC is "alone in the market", Vietnamese people no longer favor gold?

Gold price today August 8, 2023, gold price suddenly decreased when the USD and US Treasury bond yields increased. Non-yielding gold is often sought as a safe investment against inflation, but this precious metal tends to lose its "luster" when interest rates rise. SJC gold price increased.

LIVE UPDATE TABLE OF GOLD PRICE TODAY 8/8 and EXCHANGE RATE TODAY 8/8

1. PNJ - Updated: August 8, 2023 02:30 - Website supply time - ▼ / ▲ Compared to yesterday.
Type	Buy	Sell out
HCMC - PNJ	56,100	57,100
HCMC - SJC	66,750	67,300
Hanoi - PNJ	56,100	57,100
Hanoi - SJC	66,750	67,300
Da Nang - PNJ	56,100	57,100
Da Nang - SJC	66,750	67,300
Western Region - PNJ	56,100	57,100
Western Region - SJC	66,900	67,400
Jewelry gold price - PNJ rings (24K)	56,100	57,000
Jewelry gold price - 24K jewelry	55,900	56,700
Jewelry gold price - 18K jewelry	41,280	42,680
Jewelry Gold Price - 14K Jewelry	31,920	33,320
Jewelry gold price - 10K jewelry	22,340	23,740

Domestic gold price , opening the first trading session of the week on August 7, SJC gold price in Hanoi market was listed by Saigon Jewelry Company at 66.7 - 67.32 million VND/tael (buy - sell), increased 100 thousand VND/tael in buying price and remained unchanged in selling price compared to the closing price at the end of last week.

DOJI Gold and Gemstone Group listed the price of SJC gold at 66.55 - 67.3 million VND/tael (buy - sell), unchanged from the closing price of last weekend.

Meanwhile, the world gold price tended to decrease in the first trading session of the week on August 7. According to the World & Vietnam Newspaper , at 8:19 p.m. on August 7 (Vietnam time), the world gold price on Kitco floor was at 1,939.9 - 1,940.9 USD/ounce, down 2.7 USD/ounce compared to the previous trading session.

Gold price today August 8, 2023: Gold price suddenly turns around, SJC is still 'alone in the market', Vietnamese people no longer like gold? (Source: Bloomberg)

Summary of SJC gold prices at major domestic trading brands at the closing time of August 7:

Saigon Jewelry Company listed SJC gold price at 66.8 - 67.4 million VND/tael.

Doji Group currently lists SJC gold price at: 66.6 - 67.35 million VND/tael.

PNJ system listed at: 66.75 - 67.3 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at: 66.82 - 67.38 million VND/tael; Rong Thang Long gold brand is traded at 56.33 - 57.18 million VND/tael; jewelry gold price is traded at 55.75 - 56.95 million VND/tael.

Thus, compared to the early morning of August 7, the price of SJC gold in the Hanoi market listed by Saigon Jewelry Company increased by VND100,000/tael for buying and increased by VND80,000/tael for selling.

Converted according to the USD price at Vietcombank on August 7, 1 USD = 23,890 VND, the world gold price is equivalent to 55.87 million VND/tael, 11.53 million VND/tael lower than the selling price of SJC gold.

Gold retreats as USD stabilizes

World gold prices fell in the trading session on August 7 as the USD and US Treasury yields rose after traders considered Friday's jobs report, with attention shifting to US inflation data, expected to be released later this week.

Spot gold fell 0.4% to $1,934.89 an ounce at 11:22 GMT, after sliding to its lowest since July 11 at the close of last Friday before rising 0.4%. U.S. gold futures fell 0.3% to $1,969.70.

The US economy created fewer jobs than expected in July, but solid wage gains and a falling unemployment rate pointed to continued tightening of labor market conditions.

“Investors still see the US job market tightening... it's not a significant decline in employment activity,” said UBS analyst Giovanni Staunovo .

The dollar recovered somewhat, while benchmark 10-year Treasury yields also rose after slipping from a November high on August 4.

More persistent wage pressures from labor market tightening suggest investors should still keep an eye on inflation risks, said Yeap Jun Rong , market strategist at IG.

US consumer price index (CPI) data due on August 10 will be the focus to assess whether further interest rate hikes are needed to tame inflation.

“Our expectations remain that the trend points to low inflation and therefore no need for the Federal Reserve to raise interest rates,” Staunovo added.

Non-yielding gold is often sought as a safe investment against inflation, but tends to lose its luster as interest rates rise.

John C. Williams , president of the New York Fed, hopes that interest rates could start falling next year, The New York Times reports.

Meanwhile, in the session on August 7, world silver prices fell 0.9% to 23.38 USD/ounce, while platinum lost 0.7% to 915.50 USD. Palladium increased 0.2% to 1,259.57 USD.

“Palladium prices may be near a temporary bottom as supply risks may re-emerge due to geopolitical tensions,” said economist Daniela Corsini of Intesa Sanpaolo.

What are the chances of gold price increase?

Recently, the World Gold Council (WGC) Gold Demand Trends Report predicted an opportunity for gold prices to increase in the second half of 2023.

"An economic downturn could provide an opportunity for gold to rise, further cementing its status as a safe haven asset," said Louise Street, a market researcher at the WGC. "In this scenario, demand from investors and central banks would support gold prices, helping to offset a decline in consumer demand for jewelry and technology."

According to this expert, the record demand for gold by central banks has controlled the gold market over the past year. Although the pace of increase slowed in the second quarter, the trend of central bank gold buying has demonstrated the importance of gold as a safe-haven asset amid geopolitical tensions and challenging economic conditions around the world.

Previously, in Vietnam, consumer demand for gold in the second quarter of 2023 decreased by 9%, from 14 tons in the second quarter of 2022 to 12.7 tons. Key factors affecting the market trend include changes in local demand for gold bars and gold coins, as well as the slowdown in the growth of the Vietnamese economy.

Specifically, this decline was mainly due to a 5% year-on-year decrease in demand for gold bars and coins, from 9.6 tonnes in Q2 2022 to 9.1 tonnes in Q2 2023. The same happened to the jewelry segment, with demand falling from 4.5 tonnes in Q2 2022 to 3.7 tonnes in Q2 2023, representing an 18% year-on-year decline.

Globally, in terms of gold investment, demand for gold bars and coins increased by 6% year-on-year to 277 tonnes in the second quarter, with total investment reaching 582 tonnes in the first half of 2023, thanks to growth in key markets including the US and Türkiye.

However, experts also warn that gold is a highly liquid investment channel, but caution should be exercised because gold prices often fluctuate, rising rapidly and falling rapidly. If people want to invest, they need to carefully research information about gold prices, invest long-term and should not borrow to invest in gold.

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