Gold suddenly plummeted

Domestic gold price

At the end of the trading session on June 20, the domestic 9999 gold price was listed by SJC and Doji Gold and Gemstone Group in the following order of buying and selling:

SJC Hanoi : 66,500,000 VND/tael - 67,120,000 VND/tael
Doji Hanoi: 66,450,000 VND/tael - 67,050,000 VND/tael
SJC HCMC: 66,500,000 VND/tael - 67,100,000 VND/tael
Doji HCMC: 66,450,000 VND/tael - 66,950,000 VND/tael

International gold price

On the night of June 20 (Vietnam time), the world spot gold price stood at around 1,937 USD/ounce. Gold for August delivery on the Comex New York floor was at 1,959 USD/ounce.

The world gold price on the night of June 20 was about 6.2% higher (113 USD/ounce) than at the beginning of 2023. World gold converted to the bank USD price was 55.7 million VND/tael, including taxes and fees, about 11.3 million VND/tael lower than the domestic gold price as of the end of the afternoon session on June 20.

Gold prices in the international market suddenly plummeted as the USD edged up slightly and investors were cautious about the speech of US Federal Reserve Chairman Jerome Powell this week.

*Gold price today June 21st dropped sharply. (Photo: KC)*

According to plan, Mr. Jerome Powell will have a two-day hearing on June 21-22 before the US House of Representatives and Senate.

Many recent forecasts show that upcoming macroeconomic data can have a big impact on the gold market. Previously, Mr. Powell affirmed that the next step of the US central bank depends on economic data.

Gold price forecast

The Fed’s pause in raising interest rates at its meeting on June 13-14 is a good sign for precious metals. However, this is just a pause for the agency to assess the impact of the previous 10 interest rate hikes (a total increase of 500 basis points, from 0-0.25% to 5-5.25%/year).

The dot plot, which shows policymakers' forecasts for the future direction of interest rates, shows that the Fed expects interest rates to be higher. Fed officials largely expect the federal funds rate to reach 5.6% by the end of this year.

Thus, in the remaining 4 meetings this year, the FOMC may raise interest rates 2 more times. This also means that the Fed will only start lowering interest rates in 2024, if this expectation remains.

In fact, technically, gold's failure to break $1,970 an ounce has increased selling pressure, which is expected to lead to a deep correction.

On the other hand, many organizations still predict that gold prices will increase in the long term when the Fed reverses its monetary policy. Gold may break through the $2,000/ounce level in the near future.

Gold remains an option as European and Asian stocks fall and China decides to cut interest rates as its economy slows.

Gold price today June 20: Slight decrease, waiting for signal from Fed Gold price today June 20 on the world market slightly decreased, waiting for news that the US Federal Reserve (Fed) may raise interest rates 2 more times this year.

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