Gold price today, July 4: Unexpected reversal and plunge, why?

Giá vàng hôm nay 4-7: Bất ngờ sụt giảm - Ảnh 1. — Gold price today suddenly plummeted

At 6:00 a.m. on July 4 (Vietnam time), the world gold price today fell to 3,330 USD/ounce - down 30 USD compared to the peak in last night's trading session of 3,360 USD/ounce.

The US economy puts pressure

According to the jobs report from the US Bureau of Labor Statistics, nonfarm payrolls increased by 147,000 jobs in June, far exceeding economists' forecasts of 111,000 jobs. The unemployment rate unexpectedly fell to 4.1%, compared to 4.2% in May - contrary to forecasts of an increase to 4.3%.

These figures reinforce confidence in the strength of the US economy, reducing expectations that the US Federal Reserve (FED) will soon cut interest rates.

Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management, said strong employment data suggests the Fed could delay a rate cut until the end of the third quarter or even the fourth quarter of this year.

Stock market boom

The jobs report also showed that US wage inflation is showing signs of slowing. Average hourly earnings in June rose just 0.2% to $36.30, lower than economists' expectations of 0.3%. This information eased concerns about inflationary pressures, boosting optimism in the stock market.

On Wall Street, the Dow Jones indexes rose 344 points, the Nasdaq rose 207 points, and the S&P 500 rose 51 points.

The stock market boom may have encouraged investors to sell gold and move capital into stocks, causing gold prices to fall sharply today.

Short-term forecast

Analysts say gold prices could continue to be under pressure in the short term if US economic data remains positive and the FED maintains its high interest rate policy.

Spot gold prices are currently at their lowest level in a week. The downward trend in the price of this precious metal could continue if there is no unexpected factor to support.

In Vietnam, by the end of July 3, the listed price of SJC gold was 121.3 million VND/tael for sale, while the price of gold rings was 117 million VND/tael.