Gold price hits bottom, market suffers "double shock", is it the right time to buy?

Gold prices today, July 29, ended the week with the biggest weekly decline of the year with an increase as the USD fell again. Although it is not a perfect environment for gold at present, low growth and persistent inflation are still positive for the precious metal.

LIVE UPDATE TABLE OF GOLD PRICE TODAY 7/29 AND EXCHANGE RATE TODAY 7/29

1. PNJ - Updated: July 28, 2023 10:00 PM - Website supply time - ▼ / ▲ Compared to yesterday.
Type	Buy	Sell out
HCMC - PNJ	56,000 ▼300K	57,100 ▼200K
HCMC - SJC	66,600	67,200 ▲50K
Hanoi - PNJ	56,000 ▼300K	57,100 ▼200K
Hanoi - SJC	66,600	67,200 ▲50K
Da Nang - PNJ	56,000 ▼300K	57,100 ▼200K
Da Nang - SJC	66,600	67,200 ▲50K
Western Region - PNJ	56,000 ▼300K	57,100 ▼200K
Western Region - SJC	66,750 ▼100K	67,250 ▼100K
Jewelry gold price - PNJ rings (24K)	56,000 ▼300K	57,000 ▼200K
Jewelry gold price - 24K jewelry	55,800 ▼300K	56,600 ▼300K
Jewelry gold price - 18K jewelry	41,200 ▼230K	42,600 ▼230K
Jewelry Gold Price - 14K Jewelry	31,860 ▼180K	33,260 ▼180K
Jewelry gold price - 10K jewelry	22,300 ▼120K	23,700 ▼120K

Gold prices held near a two-week low on the final trading day of the week (July 28) after strong US economic data was better than expected, boosting the dollar and bond yields. The high interest rate environment dragged the non-yielding precious metal to its biggest weekly loss this year.

This week's moves also showed that, after hitting a weekly high in Thursday's trading, the gold market saw profit-taking ahead of the closing bell for the commodities market.

According to TG&VN at 7:00 p.m. on July 28 (Vietnam time), the gold price traded on Kitco floor at 1,957.4 USD/ounce, up 9.6 USD compared to the previous session, after continuously falling sharply. The last time, the gold price traded in August increased 10.30 USD to 1,956.00 USD/ounce.

Gold price today July 29, 2023: Gold price hits bottom, biggest drop of the year, is it the right time to buy? (Source: TASS)

Domestic gold price is almost unchanged, maintained above 67 million VND/tael for sale.

Summary of SJC gold prices at major domestic trading brands at the closing time of July 28.

Saigon Jewelry Company listed SJC gold price at 66.75 - 67.37 million VND/tael.

Doji Group currently lists SJC gold price at: 66.55 - 67.25 million VND/tael.

Phu Quy Group listed at: 66.45 - 67.05 million VND/tael.

PNJ system listed at: 66.60 - 67.15 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at: 66.75 - 67.28 million VND/tael; Rong Thang Long gold brand is traded at 56.23 - 57.08 million VND/tael; jewelry gold price is traded at 55.65 - 56.85 million VND/tael.

Gold prices are still being pulled down?

Gold prices have fallen from their highest levels in the week after better-than-expected GDP data from the world's leading economy and a better-than-expected drop in unemployment claims, according to analysts. Gold prices are expected to remain under pressure in the coming time after the upbeat US economic data, and could fall another $10 to $15 in the market. Therefore, some investors consider this a good time to buy.

New data released showed that the US economy's GDP grew 2.4% in the second quarter, surpassing economists' expectations. Economists had expected a 1.8% increase. In addition, new data showed that the strength of the US labor market was also a factor causing gold to reverse. According to the US Department of Labor, the number of weekly unemployment claims decreased by 7,000 compared to the previous week.

According to analysts, gold prices are suffering a double shock. The number of unemployment benefits applications from earlier shows that the labor market is stronger than expected. Meanwhile, GDP figures show that the US is not likely to fall into recession at the moment. These two important factors will pave the way for the Fed to continue raising interest rates.

Gold prices are currently hovering between $1,935 and $1,985 an ounce and the yellow metal is expected to fall further to $1,935 an ounce after positive US economic data is released.

Gold prices are highly sensitive to rising interest rates. Higher rates increase the opportunity cost of holding non-yielding assets such as gold.

The best chance for gold to hit a new record high is if the Fed announces the end of its monetary tightening cycle and there is no imminent recession, said market analyst Matt Simpson at financial services firm City Index .

Looking longer term, George Milling-Stanley, head of gold strategy at State Street Global Advisors, said the precious metal will still be supported by lingering recession fears. “People are still concerned about the health of the economy, and uncertainty is good for gold. I don’t think that uncertainty will go away anytime soon,” he said.

Even if a recession is avoided, the Fed’s aggressive monetary policy will slow growth, the expert added. “While not a perfect environment for gold, low growth and persistent inflation are still positive for the precious metal,” said Milling-Stanley.

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