Gold price today, July 5: The decline has not stopped

Giá vàng hôm nay, 5-7: Đà giảm chưa dừng lại- Ảnh 1. — Gold price continues to fall today

At the beginning of July 5, the world gold price today closed the weekend at 3,335 USD/ounce, down 10 USD compared to the peak in last night's trading session of 3,345 USD/ounce.

According to analysts, the precious metal currently lacks a strong catalyst to break out of its consolidation phase. Gold's recent rally has been capped by a positive US jobs report that has changed investors' expectations of the Fed's monetary policy.

Gold prices affected by US employment data

The US non-farm payrolls report for June showed the economy added 147,000 jobs, far exceeding the 111,000 economists had forecast. The unemployment rate also fell to 4.1%, further reinforcing the positive economic picture. The data has led markets to sharply reduce expectations for a Fed rate cut at its upcoming meeting, with the probability of a rate cut now at just 25%, according to financial market data.

Ole Hansen, head of commodity strategy at Saxo Bank, said it was no surprise that investors were selling gold as interest rate expectations were revised. However, the long-term uptrend in gold remains intact. To avoid a deeper correction, gold needs to hold support at $3,245 an ounce as the key drivers of gold prices have not disappeared.”

Gold remains attractive in the long term

Despite today's decline in gold prices, experts remain positive on the long-term prospects of the precious metal. James Stanley, senior market strategist at Forex.com, said that any dip in prices is a buying opportunity. He stressed that countries continue to spend heavily, leading to currency depreciation, which will continue to support gold prices.

This optimism is reinforced by the US government spending move. The US Congress has just passed a budget bill, expected to increase the federal deficit, which will put pressure on the USD, creating an attractive world gold price.

In Vietnam, by the end of July 4, the price of SJC gold was listed at 120.9 million VND/tael for sale, while the price of gold rings was at 116.8 million VND/tael.