On the morning of August 16, the price of SJC gold bars continued to be maintained by gold companies at 123.5 million VND/tael for buying and 124.5 million VND/tael for selling.
Domestic gold prices are still at a sky-high level, creating a large gap compared to world gold prices.
Talking to Lao Dong, expert Tran Duy Phuong - Director of Golden Fund Gold and Gemstone Company - said that domestic gold prices are most affected by the supply-demand relationship.
Due to the limited supply of raw gold and SJC gold bars, domestic prices are unlikely to fall sharply even when world prices fluctuate strongly. Although domestic gold prices will adjust down according to the world trend, the decrease is usually very small. For example, when the world gold price decreases by 10, the domestic price can only decrease by 1-2.
Currently, the domestic gold market is still in the waiting period, waiting for the move from the State Bank and the developments of world gold prices.
Factors that once supported gold prices such as geopolitical tensions (Russia-Ukraine, Middle East) are no longer as strong as before. The remaining major supporting factor is the possibility that the US Federal Reserve (Fed) will cut interest rates twice by the end of the year. However, because this factor was predicted by the market, it is unlikely to create a big boost.
Therefore, world gold prices are likely to adjust down in the coming time. Gold prices may accumulate and increase again afterwards, but it is unlikely to fall too much.
Mr. Phuong also advised investors about the large price difference, the Government and the State Bank may issue policies to increase supply, narrowing the gap between domestic and world gold prices. The current difference of about 16-17 million VND may decrease to 10 million VND in the coming time. However, it is very difficult to make the difference to just a few million.
Buying SJC gold at the present time is risky. When domestic gold prices are adjusted, buyers may lose 5-6 million VND. In addition, if the world gold price continues to decrease, the risk of losses will be even greater.
Therefore, investors should consider carefully before deciding to buy gold, especially SJC gold. Other types of gold that are more suitable for investment can be considered.
