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 dropped

At 6:00 am 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.

US economy puts pressure

According to the US Bureau of Labor Statistics' jobs report, 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 - contradicted to forecasts of a rise 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 the strong jobs data suggests the Fed could delay a rate cut until late in the third quarter or even the fourth quarter of this year.

Stocks boom

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

On Wall Street, the Dow Jones index 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 shift capital to stocks, causing gold prices to fall suddenly 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 price of SJC gold was listed at 121.3 million VND/tael for sale, while the price of gold rings was at 117 million VND/tael.