Gold prices escaped a sell-off, difficult to slip from the $1,900 threshold, but also unable to break out?

Gold price today, July 5, 2023, after testing the $1,900/ounce level, has risen to "save itself" from a more significant sell-off if prices fall below this psychologically important level. Can gold prices break out this week?

LIVE UPDATE TABLE OF GOLD PRICE TODAY 7/5 AND EXCHANGE RATE TODAY 7/5

1. SJC - Updated: 07/04/2023 14:36 - Website supply time - ▼ / ▲ Compared to yesterday.
Type	Buy	Sell out
SJC 1L, 10L	66,500 ▲100K	67,100 ▲100K
SJC 5c	66,500 ▲100K	67,120 ▲100K
SJC 2c, 1C, 5 phan	66,500 ▲100K	67,130 ▲100K
SJC 99.99 gold ring 1 chi, 2 chi, 5 chi	55,150 ▲50K	56,150 ▲50K
SJC 99.99 gold ring 0.5 chi	55,150 ▲50K	56,250 ▲50K
99.99% Jewelry	55,050 ▲50K	55,750 ▲50K
99% Jewelry	53,998 ▲49K	55,198 ▲49K
Jewelry 68%	36,064 ▲34K	38,064 ▲34K
Jewelry 41.7%	21,400 ▲21K	23,400 ▲21K

Gold prices ended the second quarter of 2023 down more than $80, their worst performance since the third quarter of last year. However, as of today's session, gold has managed to " save itself" from a more significant sell-off, as prices still hold the important psychological level of $1,900/ounce.

According to TG&VN at 9:30 p.m. on July 4 (Vietnam time), the gold price was trading at 1,928.2 USD/ounce, up 6.5 USD compared to the previous session . The gold price for August delivery also increased 0.36% to 1,936.4 USD/ounce.

Lower-than-expected US economic data released on July 3, including the Purchasing Managers' Index (PMI), supported gold prices. In addition, the market has shown some positive signs, the downward trend of gold is slow and steady, no longer sudden and steep. Importantly, gold prices have held the threshold of 1,900 USD/ounce. Traders will continue to closely monitor US labor market data to see if previous interest rate hikes have slowed the economy.

Giá vàng hôm nay 7/9: Giá vàng , USD chạm mức đỉnh,. (Nguồn: FX Empire)

Gold price today July 5, 2023: Gold price escapes a sell-off, difficult to slip below the $1,900 threshold, but also cannot break out?. (Source: FX Empire)

Edward Moya, senior market analyst at OANDA, said there could be significant technical selling. He pointed out that one of the reasons for the rise in gold prices is that the market has not yet priced in two Fed rate hikes. Market sentiment suggests that some traders are betting that recent weak US economic data could prompt the Fed to rethink its interest rate strategy.

But the minutes of the Fed’s June meeting, due later on July 5, could signal a hawkish stance, as has been the case with recent comments from Fed Chairman Jerome Powell. According to the CME Fedwatch tool, investors see a nearly 90% chance of a 25 basis point rate hike by July 2023. High interest rates discourage investment in gold, which pays zero interest.

Domestic gold prices increased slightly at some trading units nationwide. A notable phenomenon is the fluctuation of gold jewelry, with the selling direction increasing sharply. In particular, the difference between buying and selling widened, for example, at Bao Tin Minh Chau Company, the difference between buying and selling increased to 1.12 million VND/tael; at Doji , it was 1.45 million VND/tael.

The central exchange rate on July 4 announced by the State Bank was 23,804 VND/USD, down 1 VND compared to yesterday. The USD exchange rate at commercial banks was traded around 23,470 VND/USD (buy) and 23,840 VND/USD (sell).

Summary of SJC gold prices at major domestic trading brands at the closing time of the trading session on July 4.

Saigon Jewelry Company listed SJC gold price at 66.50 - 67.12 million VND/tael.

Doji Group currently lists SJC gold price at: 66.45 - 67.05 million VND/tael.

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

PNJ system listed at: 66.50 - 66.95 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at: 66.52 - 67.03 million VND/tael; Rong Thang Long gold brand is traded at 55.37 - 56.22 million VND/tael; jewelry gold price is traded at 54.90 - 56.00 million VND/tael.

Gold prices are difficult to predict.

There are reasons why gold prices are unlikely to fall below the key $1,900 level, despite two possible interest rate hikes this year, said Chris Weston, head of research at Pepperstone. “I am surprised at how resilient gold has been to the moves in the US bond market,” said Weston.

Federal Reserve Chairman Jerome Powell’s message of at least two more interest rate hikes this year has been echoed throughout the market, sending gold lower and pushing the dollar higher. But the fact that prices have not fallen below $1,900 an ounce shows the resilience of the gold market.

Meanwhile, expert Sean Lusk, Director of Walsh Trading, predicts that if gold fails to hold the support level of $1,900/ounce, it will likely fall to $1,850/ounce and then to $1,814/ounce. In a worse scenario, if gold fails to hold the $1,814/ounce level, a drop to $1,720/ounce is possible.

Some experts believe that gold prices are stuck around the $1,900/ounce range. In the near future, gold is unlikely to break out due to a series of economic and monetary policy impacts. Not only that, gold is unlikely to increase in price because any recovery of the precious metal will face pressure to take profits or cut losses to get money back from investors.

Meanwhile, from another perspective, some people believe that, after a series of negative economic data in recent times, the gold price is still holding above 1,900 USD/ounce. That proves the ability of the gold market to recover in the near future.

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