Limited supply
In the context of the God of Wealth's day approaching, the domestic gold price has recorded a sharp increase, surpassing the 90 million VND/tael mark, closely following the increasing trend of the world gold price at 2,860 USD/ounce (10am - February 6).
Domestic gold prices tend to follow the developments of the world market. The spike of more than 90 million VND/tael reflects the psychology of people buying gold to store and pray for luck on the day of God of Wealth. Meanwhile, some types of gold, even jewelry gold, have reached the threshold of 100 million VND/tael, creating a big fever in the gold market.
Associate Professor, Dr. Dinh Trong Thinh - economic expert said that people's demand for gold during this time increased but the supply was not much, contributing to pushing domestic gold prices higher than international gold prices.
Experts also commented that this price increase does not come from the usual supply and demand factors but mainly from market psychology. Gold shops tend to push up prices on this day along with people's willingness to pay higher prices to own gold, which has pushed gold prices to break out very quickly in recent days.
Gold price is expected to decrease after God of Wealth day
“After the peak days of the God of Wealth, the gold price may adjust back to be closer to the world gold price. This has happened in previous years when the demand for buying gold for “luck” increased dramatically and then gradually decreased. However, the specific decrease depends on the development of the world gold price and the price adjustment policy of domestic gold businesses” - Associate Professor, Dr. Dinh Trong Thinh predicted.
Experts recommend that people should consider carefully before buying gold, avoid following the crowd mentality leading to buying gold at a higher price than the actual price. If buying gold for luck, only buy a moderate amount instead of buying in bulk. You can wait a few days for the gold price to cool down to avoid buying at the peak price, if you need to buy gold to accumulate.
Although gold is considered a safe investment channel, it also has many potential risks if not calculated carefully. Therefore, economic experts continuously emphasize that people should closely monitor market developments before deciding to buy gold, especially during peak periods such as the God of Wealth day.
