World gold prices continued to adjust in the trading session on July 8 as investors turned their attention to the minutes of the June monetary policy meeting of the US Federal Reserve (Fed), while monitoring geopolitical developments in the Middle East and the impact of energy prices on interest rate prospects.
In the trading session as of 11:10 am Vietnam time, spot gold price decreased by 0.48% to 4,122.17 USD/ounce, after losing about 1.4% in the previous session. In the session, the precious metal fluctuated in the range of 4,116.20–4,169.40 USD/ounce, continuing to hold above the psychological level of 4,100 USD/ounce but could not conquer the resistance level of 4,200 USD/ounce.
The focus of the market this week is the minutes of the monetary policy meeting on June 16-17 of the Fed, expected to be released on July 9 (Vietnam time). Investors expect this document to provide more clues about monetary policy management views after the Fed kept interest rates unchanged at 3.50%–3.75% at the June meeting.
Previously, the US June jobs report showed that the economy only created 57,000 jobs, significantly lower than the forecast of 115,000 jobs. The unemployment rate remained at 4.2%, while the jobs data for April and May was adjusted down by a total of 74,000 jobs.
These figures have reduced expectations that the Fed will raise interest rates soon in the short term. However, the recovery momentum of gold prices is still under pressure as US government bond yields and the USD rebound.
The yield on 10-year US government bonds ranged from 4.499%–4.549%, while the yield on 2-year bonds was around 4.185%. The USD also continued to appreciate, reducing the attractiveness of gold – an asset that does not yield yields.
Besides the monetary policy factor, developments in the Strait of Hormuz continue to attract market attention after the US launched airstrikes in response to attacks on maritime activities in the region. Previously, Washington also revoked a 60-day license allowing Iran to export oil to the international market.
Concerns about the risk of energy supply disruption have supported oil prices to rise again. In the trading session on July 8, Brent oil prices increased by 2.66% to 76.13 USD/barrel, while WTI oil increased by 2.61% to 72.28 USD/barrel.
On the precious metals market, silver prices increased by 0.67% to 60.36 USD/ounce, after failing to maintain the upward momentum above the 62 USD/ounce mark.
