The gap between domestic and world gold prices decreases rapidly
According to data from August 1st to August 24th, world gold prices and SJC gold bar prices both increased, but the fluctuation rate was different. While international gold increased by more than 568 USD/ounce, equivalent to about 18 million VND/tael when converted, SJC gold price only increased by 8 million VND/tael.
On August 1st, the world gold price was at 4,041.7 USD/ounce. With the USD/VND selling exchange rate at Vietcombank on August 24th being 26,310 VND/USD, the converted world gold price is equivalent to about 128.2 million VND/tael.
Meanwhile, the selling price of SJC gold bars at the same time was 141 million VND/tael. Thus, the domestic gold price is about 12.8 million VND/tael higher than the converted world gold price.
By August 24, world gold prices increased to 4,610.1 USD/ounce, equivalent to about 146.2 million VND/tael after conversion. SJC gold selling price is at 149 million VND/tael. The difference between the two markets is currently about 2.8 million VND/tael.
Thus, after more than three weeks, the gap between SJC gold price and converted world gold price has decreased by nearly 10 million VND/tael.
This development shows that domestic gold prices are not increasing at the same rate as the international market. As world gold prices rise, the gap between the two markets gradually narrows instead of expanding as in some previous periods.
World gold rises faster than domestic gold
In the period from the beginning of August to now, world gold prices increased from 4,041.7 USD/ounce to 4,610.1 USD/ounce, equivalent to an increase of about 14.1%.
Meanwhile, the selling price of SJC gold increased from 141 million VND/tael to 149 million VND/tael, an increase of about 5.7%.
The difference in the rate of increase causes the proportion of difference between domestic and world gold to change significantly.
On August 1st, SJC gold price was nearly 13 million VND/tael higher than the converted world gold price. By August 24th, the difference was only about 2.8 million VND/tael.
Buyers need to track both buying and selling differences.
Besides the gap between domestic and world gold prices, investors are also affected by the difference between the buying and selling prices of gold businesses.
In the context of fluctuating gold prices, the buying-selling distance is a factor directly affecting the profits of buyers. If gold prices increase but the buying-selling range is large, the actual profit may be narrowed.
Developments in the past month show that international gold prices are playing an important role in the general trend of the market. However, the increase in domestic gold is not completely consistent with the world market because it is still affected by specific factors.
The narrowing gap between SJC and world gold prices helps reduce the gap between the two markets, but does not mean that the risk of price volatility has disappeared. Gold buyers need to consider factors such as buying price, selling price, difference and market volatility before making a decision.
The article updates the developments of the gold market, not an investment recommendation. Investors need to consider carefully before making a decision.
