International gold price today June 8, 2024
At 8:56 a.m. today (June 8, Vietnam time), World gold spot price stands around 2,292.6 USD/ounce, down 29.4 USD/ounce compared to last night. Gold futures price in August 2024 on the Comex New York floor is at 2,325 USD/ounce.
Gold price on Kitco (at 8:00 p.m., June 7, Vietnam time) traded at 2,322 USD/ounce, down 2.25% compared to the beginning of the session. Gold futures price in August traded at 2,333 USD/ounce.
According to the Bureau of Labor Statistics, US nonfarm payrolls increased by 272,000 jobs last month. This monthly figure was higher than market estimates of 182,000 jobs. However, the unemployment rate rebounded last time, rising to 4.0%.
The USD-Index and US Treasury bond yields increased sharply after the announcement. The USD-Index was at 104.67 points, up 0.55%.
Better-than-expected jobs data adds to gold selling pressure. Analysts do not expect solid growth in the labor market to force the Federal Reserve to delay interest rate cuts this year.
Some market participants also pointed to growing pressure on the Fed as both the European Central Bank and the Bank of Canada begin easing cycles.
The gold market witnessed strong selling pressure after data showed that the People’s Bank of China (PBoC) did not buy gold last month, ending a record net buying streak lasting 18 months.
Previously, world gold reached an all-time peak partly due to strong purchasing power from central banks. In particular, the PBoC buys gold to diversify reserves and hedge against currency devaluation.
Gold price forecast
According to CME FedWatch, traders are now betting about a 70% chance that the Fed will cut interest rates in September. Lower interest rates reduce the opportunity cost of holding gold, which is a non-yielding asset.
The fact that a large buyer like the Central Bank of China stops buying will likely have a negative impact on gold prices in the near future. In the immediate future, spot gold prices have decreased by more than 1%.
Assessing the long-term outlook, Neil Meader, Director at Metals Focus, said that by the end of this year, gold prices will increase again, with the possibility of reaching a new all-time high.