Domestic gold price increases dramatically
Domestic gold prices are maintaining a very impressive increase. SJC gold has recorded its 8th consecutive increase and has shown no signs of reversal.
On August 20, the price of SJC gold bars was listed by a number of domestic businesses around 123.8-124.8 million VND/tael (buy in - sell out). As of today (8.29), the price has increased to 127.4-128.9 million VND/tael (buy in - sell out).
Thus, in less than 10 days, gold bars have increased by 3.6 million VND/tael for buying and 4.1 million VND/tael for selling.
The price shift for buying and selling also increased from 1 million VND to 1.5 million VND/tael. The increased difference between buying and selling puts buyers at higher risk of loss.
Not only SJC gold, the price of plain gold rings also recorded a high increase. On August 20, the listed price of gold rings was about 117-120.2 million VND/tael (buy in - sell out). The difference between buying and selling is 3.2 million VND/tael.
As of today, the price of gold rings has increased to 120.6-123.6 million VND/tael (buy - sell), the difference between buying and selling is 3 million VND/tael.
Thus, gold rings have increased by 3.6 million VND/tael for buying and 3.4 million VND/tael for selling. The difference between buying and selling is 3 million VND/tael.
On August 26, the Government announced the abolishment of the State's monopoly mechanism for the production of gold bars, the export of raw gold and the import of raw gold to produce gold bars. This has led many to expect domestic gold prices to cool down rapidly. However, the precious metal's continued increase has surprised many people.
According to Mr. Nguyen Huu Huan - Head of the Financial Market Department (Faculty of Banking, Ho Chi Minh City University of Economics), the removal of the gold monopoly mechanism will help the market become more transparent, but in reality, there is not much supply, while domestic demand is still high.
Therefore, it is necessary to ensure supply by allowing enterprises to produce and trade imported gold bars with an import quantity sufficient for domestic demand. At this time, domestic gold prices are approaching world prices.
Financial and banking expert Nguyen Tri Hieu commented that the adjustments in the new decree cannot immediately be put into practice. In addition, gold prices increased partly due to the impact of world prices.
World gold prices continue to increase
World gold has been increasing continuously in recent trading sessions. On August 20, the world gold price was listed around 3,314.4 USD/ounce. As of today, August 29, the precious metal has risen $95.1 to $3,409.5 an ounce.
Experts say that the world gold price increase may not have stopped. Bank of America (BofA) believes that gold prices are still on track to reach the $4,000/ounce mark as the USD continues to weaken.
In a report published last week, the bank said that falling interest rates and a weaker US dollar will be the platform to support gold's rally.
Interest rate cuts amid rising inflation create fertile conditions for the weakening of the USD. Cutting interest rates in an inflationary environment that remains high is likely to push the precious metal higher," the analysts wrote.
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