In one week, world gold prices recorded a significant increase, from the area of over 4,040 USD/ounce to over 4,340 USD/ounce. Meanwhile, domestic SJC gold bars and gold rings, although increasing, the rate of increase is much slower.
World gold rises nearly 300 USD/ounce
At 9:00 AM on August 1st, world gold prices were recorded at 4,041.7 USD/ounce. In the first sessions of the week, the precious metal mainly struggled around the 4,000 USD/ounce range.
By August 3, the price increased to 4,059.9 USD/ounce, then slightly adjusted to 4,057.3 USD/ounce on August 4. The upward momentum began to be clear from August 5, when gold exceeded 4,100 USD/ounce.
A turning point appeared in session 6. 8. World gold prices increased by 191.9 USD/ounce, to 4,292.2 USD/ounce. After a correction to 4,257.1 USD/ounce on August 7, the precious metal continued to increase sharply and reached 4,341.3 USD/ounce at 9:00 am on August 8.
Thus, from August 1 to August 8, world gold prices increased from 4,041.7 to 4,341.3 USD/ounce, equivalent to an increase of 299.6 USD/ounce, equivalent to about 7.41%.
According to Vietcombank's USD selling exchange rate on August 8 at 26, 410 VND/USD, the increase of 299.6 USD/ounce is equivalent to about 9.54 million VND/tael when converted by weight, with 1 tael equal to 37.5 grams and 1 ounce of gold equal to about 31.1035 grams.
If using the same exchange rate to convert, the world gold price on August 1 is equivalent to about 128.69 million VND/tael, while by August 8 it had increased to about 138.23 million VND/tael.
The conversion increase of about 9.54 million VND/tael shows that the upward speed of the world market far exceeds the fluctuations of domestic gold in the same period.
Domestic gold increases slightly higher than world price
While world gold increased by more than 7% after only one week, domestic SJC gold bar prices increased slightly more significantly.
On August 1st, Phu Quy and DOJI both listed SJC gold bars at 137-141 million VND/tael (buying - selling).
By the morning of August 8, these two units raised the price to 141-144 million VND/tael.
Thus, after a week, the buying price of SJC gold bars at Phu Quy and DOJI increased by 4 million VND/tael, while the selling price increased by 3 million VND/tael.
Considering the selling side alone, the price increased from 141 million to 144 million VND/tael, equivalent to about 2.13%. This increase is significantly lower than the 7.41% increase of world gold prices.
At Bao Tin Minh Chau, SJC gold bars increased from 138.7-142.7 million VND/tael on August 1 to 141.5-145.5 million VND/tael on August 8, equivalent to an increase of 2.8 million VND/tael in both directions.
Gold ring prices also went up, but the increase was generally much lower than world gold.
In Phu Quy, gold rings increased from 137-141 million VND/tael to 141-144 million VND/tael, corresponding to an increase of 4 million VND/tael on the buying side and 3 million VND/tael on the selling side.
At DOJI, the price of gold rings increased from 137.5-141.5 million VND/tael to 141.2-145.2 million VND/tael, an increase of 3.7 million VND/tael in both directions.
Bao Tin Minh Chau adjusted gold rings from 138.7-142.7 million VND/tael to 141.5-145.5 million VND/tael, an increase of 2.8 million VND/tael.
Price difference between domestic and world gold sharply decreases
The fact that world gold prices increased much faster than domestic gold prices has sharply narrowed the gap between the two markets.
To make a unified comparison, the world gold price at both times is converted according to the same USD selling exchange rate of Vietcombank on August 8 as 26, 410 VND/USD.
With a price of 4,041.7 USD/ounce on August 1st, world gold converted is equivalent to about 128.69 million VND/tael.
Meanwhile, the selling price of SJC gold bars at Phu Quy and DOJI is 141 million VND/tael. Domestic gold prices are therefore about 12.31 million VND/tael higher than the converted world price.
By August 8, world gold prices were at 4,341.3 USD/ounce, equivalent to about 138.23 million VND/tael.
Compared to the selling price of SJC gold bars at Phu Quy and DOJI of 144 million VND/tael, the gap between the two markets at this time is only about 5.77 million VND/tael.
Thus, after a week, the difference between the selling price of SJC gold bars at Phu Quy, DOJI and the converted world gold price has decreased from about 12.31 million to 5.77 million VND/tael, which is a narrowing of about 6.54 million VND/tael, equivalent to about 53.1%.
This narrowing can be viewed in another way: during the week, the converted world gold price increased by about 9.54 million VND/tael, but the selling price of SJC gold bars at Phu Quy and DOJI only increased by 3 million VND/tael. The difference of about 6.54 million VND/tael is the narrowed gap between the two markets.
At Bao Tin Minh Chau, the selling price of SJC gold bars on August 1st was at 142.7 million VND/tael, about 14.01 million VND/tael higher than world gold converted.
By August 8, with a selling price of 145.5 million VND/tael, the gap was about 7.27 million VND/tael. Thus, the difference at this unit decreased by about 6.74 million VND/tael, equivalent to more than 48% after a week.
The article only reflects market developments, not investment recommendations. The conversion data and difference calculations in the article are for reference, determined at the time of recording and may change depending on gold price fluctuations, foreign exchange rates as well as conversion methods.
