The world’s largest gold ETF, SPDR Gold Trust, continued to buy gold on the first trading day of the week.
As of 9:10 am today (June 10th), the spot gold price in the Asian market dropped by more than $20 per ounce compared to the previous night’s close in the US, equivalent to a decrease of more than 0.6%, trading at $3,304.5 per ounce, according to data from Kitco Exchange. At this price, gold is equivalent to about VND 104.4 million per tael, based on Vietcombank’s selling exchange rate.
At the same time, Vietcombank quoted the USD at VND 25,830 (buying) and VND 26,220 (selling).
On Monday, in New York, spot gold closed at $3,325.3 per ounce, up $13.64 per ounce from the previous week’s close, equivalent to an increase of more than 0.4%.
At the beginning of the week, the gold price was supported by the depreciation of the US dollar. The Dollar Index, which measures the strength of the greenback against a basket of six major currencies, closed at 98.94, down from above 99 points at the end of the previous week, according to data from MarketWatch.
However, the US dollar recovered this morning and put pressure on gold prices. At one point, the Dollar Index reached 99.2 points, up 0.3% from the previous day’s close.
The appreciation of the US dollar and the weakening demand for risk hedging through gold holdings are partly due to the second round of high-level trade talks between the US and China, currently taking place in London, UK.
The US delegation includes three top trade negotiators: Secretary of the Treasury, Scott Bessent; Secretary of Commerce, Howard Lutnick; and the US Trade Representative, Jamieson Greer. The Chinese delegation is led by Vice Premier, Ha Lap Phong.
In an interview with CNBC on June 9th, the Director of the National Economic Council (NEC), Kevin Hasset, stated that the US seeks confirmation from these talks that China will resume exports of critical minerals. According to sources, the negotiations will continue into Tuesday morning.
“In the short term, if this meeting yields positive results, gold prices may face some downside, but not significantly,” said Bart Melek, chief strategist at TD Securities, in an interview with Reuters. “A weakening economy, the possibility of rate cuts, and the risk of selling risky assets will continue to drive investors towards gold. And of course, there’s also the factor of rising inflation.”
This week, Wall Street investors will focus on the US-China trade talks and US inflation data. The Consumer Price Index (CPI) report for May is expected to be released by the US Department of Labor on Wednesday. This will provide insights into how tariffs have impacted the US economy and influence the Federal Reserve’s interest rate decisions.
Data released at the end of last week showed that the People’s Bank of China (PBOC) bought gold for the seventh consecutive month in May. As a result, China’s official gold reserves reached 73.83 million ounces by the end of May, up from 73.77 million ounces at the end of April.
However, the value of gold reserves fell to $241.99 billion at the end of May, down from $243.59 billion at the end of April, according to PBOC.
The world’s largest gold ETF, SPDR Gold Trust, purchased approximately 2 tons of gold on Monday, increasing its holdings to 936.2 tons. Last week, the fund bought 4 tons of gold, marking its second consecutive week of net purchases.
“Downside speculators remain in control below the $3,400 per ounce level. If it drops below $3,360 per ounce, gold could fall to $3,300 per ounce and then $3,000 per ounce,” said senior analyst Lukman Otunuga of FXTM, in an interview with Kitco News. “Upside speculators could counter this move, but prices need to surpass $3,360 per ounce and $3,400 per ounce.”
Commenting on the upcoming US CPI data, Mr. Otunuga said: “A higher-than-expected CPI could bolster the US dollar and reduce bets on the Fed cutting rates, thereby hurting gold. Conversely, weaker CPI could push gold prices higher.”
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After 13 years, Decree No. 24/2012/ND-CP on the management of gold business activities remains pertinent in removing gold from the banking credit system and preventing the “goldification” of the economy. However, the question of how to channel these resources into productive business ventures rather than hoarding and clandestine transactions remains unanswered.
The Golden Dilemma: Will Prices Drop to Narrow the Absurd Gap?
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The Price of Gold Rings on May 19th Takes a Dip
“In today’s trading session, a prominent gold dealer slashed the price of gold rings to an impressive VND 114.2 – 117.2 million per tael.”
Gold Prices Plummet This Week as SPDR Gold Trust Dumps 20 Tons
This week, gold prices tumbled, shedding 122 USD/oz, a decline of nearly 3.7%. This marked the most significant weekly drop since November of last year, sparking attention from investors and market observers alike.
The Golden Comeback: When SJC Gold Bars Made a Surprising U-Turn on May 15th Evening.
The global gold price surged once again towards the end of the day, while SJC gold bars and rings witnessed a downward trend.
