Gold prices rise sharply, domestic and world price gap narrows

Thanh Vân |

World gold prices rose to a 7-week high, domestic gold bars also increased sharply, pulling the difference to about 5 million VND.

Domestic gold prices increase by more than 2 million VND

Domestic gold prices increased sharply in the session of August 6, with a common adjustment of 2-2.3 million VND/tael compared to the previous day.

Phu Quy Jewelry Group listed the price of SJC gold bars at 140.3-143.3 million VND/tael, corresponding to both buying and selling directions. Both directions increased by 2.3 million VND/tael. The buying - selling difference is at 3 million VND/tael.

At the same time, DOJI listed the price of SJC gold bars at 140.3-143.3 million VND/tael, an increase of 2.3 million VND/tael in both buying and selling directions. The buying - selling margin is also at 3 million VND/tael.

At Bao Tin Minh Chau, the official price list updated at 9:01 shows that VRTL Bao Tin Minh Chau gold bars are listed at 140.5-144.5 million VND/tael. The price increased by 2 million VND/tael in both directions compared to the previous day, the buying - selling difference is at 4 million VND/tael.

Gold ring prices also increased sharply but there is differentiation between brands.

Phu Quy listed gold rings at 140.3-143.3 million VND/tael, an increase of 2.3 million VND/tael in both directions. The buying - selling difference is 3 million VND/tael.

DOJI raised the price of gold rings to 140-144 million VND/tael, an increase of 2 million VND/tael in both buying and selling directions. The buying - selling margin is at 4 million VND/tael.

According to the official price list of Bao Tin Minh Chau, the 999.9 plain round ring is listed at 140.5-144.5 million VND/tael, an increase of 2 million VND/tael. The buying - selling difference is 4 million VND/tael.

With this level, the selling price of Bao Tin Minh Chau rings is 1.2 million VND/tael higher than Phu Quy and 500,000 VND/tael higher than DOJI.

Gold price difference with the world narrows

At 9:25 a.m., world gold price according to Kitco was about 4,292.2 USD/ounce, up 191.9 USD/ounce compared to a day ago.

Converted at the USD selling exchange rate of about 26,460 VND/USD, the world gold price is equivalent to about 136.93 million VND/tael, excluding taxes, fees and related costs.

Compared to this level, the selling price of SJC gold bars at 143.3 million VND/tael at DOJI and Phu Quy is about 6.37 million VND/tael higher than the world price.

VRTL gold bars and plain round rings of Bao Tin Minh Chau are both sold at 144.5 million VND/tael, higher than the converted world price by about 7.57 million VND/tael.

With DOJI gold rings at 144 million VND/tael, the corresponding gap is about 7.07 million VND/tael.

This gap has narrowed significantly compared to the first sessions of the week, when the difference between domestic and world gold bar prices was still around 10 million VND/tael. The direct cause of the narrowing is that international gold prices increased faster than domestic gold prices.

On the morning of August 6 alone, domestic prices increased by about 2-2.3 million VND/tael, but world gold prices increased by nearly 192 USD/ounce compared to the previous day and approached the 4,300 USD/ounce mark.

World gold price approaches 4,300 USD/ounce

The upward momentum of world gold prices takes place in the context of some US economic data signaling less positively about the labor market, while bond yields and the USD lose momentum.

According to the US Institute for Supply Management (ISM), the July service PMI index reached 54.1 points, still above the 50 mark and showed that the service sector continued to expand. However, the employment index fell sharply from 51.2 to 47.4 points, the lowest since March and returned to a narrow zone.

In the opposite direction, price pressure has not disappeared. The input price index in the service sector increased from 67.7 to 70.3 points, the fourth time in 5 months to exceed the 70 mark.

Two opposing signals make the monetary policy outlook of the US Federal Reserve continue to be closely monitored by the market. A weakening labor market may reduce pressure to maintain a tough monetary policy, while high input prices are still factors that make the Fed cautious about inflation.

With gold prices rising rapidly to nearly 4,300 USD/ounce, the next developments of the market will depend significantly on labor, inflation and interest rate expectations in the US.

* The information in the article is intended to reflect market developments, not investment recommendations.

Thanh Vân
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