Domestic gold prices decreased much more sharply than the world price

World gold prices adjust slightly, domestic prices fall sharply

On July 23, the domestic gold market witnessed a strong adjustment session. SJC gold bar prices at some businesses decreased from 4.5-8 million VND/tael, depending on brand and trading direction.

Meanwhile, at 9:30 am, world gold prices were listed at 4,116.9 USD/ounce, down 6.5 USD/ounce compared to the previous day.

Applying Vietcombank's exchange rate on the morning of July 23 at 26,500 VND/USD, with the estimate that 1 ounce of gold is equal to 31,1035 grams and 1 tael is equal to 37.5 grams, the decrease in world gold is converted to about 207,700 VND/tael.

Thus, world gold only decreased equivalent to about 208,000 VND/tael. Compared to the strongest decrease of 8 million VND/tael of SJC gold bars in the country, the rate of decrease of domestic gold prices is much higher than in the world.

In the gold ring market, the buying price decreased commonly from 6.2-7.5 million VND/tael, equivalent to about 29.9-36.1 times the world's decrease. The selling price decreased from 4.5-5.5 million VND/tael, about 21.7-26.5 times higher.

Speaking about the sharp decrease mentioned above, the media of a large gold, silver and gemstone business in Hanoi said that the price adjustment was carried out by the business department of the business.

Usually, businesses will refer to the price announced by Saigon Jewelry Company Limited - SJC, then base on market developments and actual trading situation to adjust the listed price appropriately" - this person said.

Domestic gold is still about 11 million VND/tael higher than the world price

At the price of 4,116.9 USD/ounce and the exchange rate of 26,500 VND/USD on the morning of July 23 (Vietnam time), the converted world gold price is equivalent to about 131.53 million VND/tael.

This conversion level does not include taxes, fees, processing costs and factors arising in gold business activities in the domestic market.

Meanwhile, the selling price of SJC gold bars on the morning of July 23 was listed by businesses from 142-143 million VND/tael. Thus, the selling price of SJC gold bars is about 10.47-11.47 million VND/tael higher than the converted world gold price.

For gold rings, the selling price is from 141-143 million VND/tael, about 9.47-11.47 million VND/tael higher than the world price.

The gap between the two markets is narrowing rapidly

A day earlier, world gold prices were at about 4-123.4 USD/ounce, equivalent to 131.74 million VND/tael after conversion.

At the same time, the selling price of SJC gold bars at businesses was commonly from 147 to 147.5 million VND/tael. The difference between the gold bar price and the world price at that time was about 15.26-15.76 million VND/tael.

After a sharp decrease on the morning of July 23, this gap narrowed to 10.47-11.47 million VND/tael. Thus, the difference between the selling price of SJC gold bars and the world has decreased by about 4.3-5.3 million VND/tael in just one day.

The above developments show that the plunge of domestic gold does not entirely stem from the decline of the international market. Domestic prices are adjusting much more strongly, thereby narrowing the difference that has been maintained at a high level in previous sessions.

However, the gap of over 10 million VND/tael on the selling side is still a noteworthy level. Along with the buying - selling difference of 5-6 million VND/tael, gold buyers may face the risk of large losses if prices continue to fluctuate strongly.