Gold prices increase but buyers still suffer loss pressure
Today's gold price on September 19 recorded an upward trend compared to a week ago. However, many short-term gold buyers still have to suffer significant losses if they sell, because the gap between the buying and selling prices is pushed up.
Entering the last trading session of the week, the price of SJC gold bars at Saigon SJC Jewelry Company was listed at 144.6 - 147.6 million VND/tael (buying - selling). The difference between the two trading directions remained at 3 million VND/tael.
Compared to the same time on September 12, the SJC gold bar price at this unit increased by 1.6 million VND/tael in both buying and selling directions. A similar development was also recorded at DOJI, when the SJC gold bar price was listed at 144.6 - 147.6 million VND/tael, an increase of 1.6 million VND/tael compared to a week ago.
Although gold prices increased, gold buyers at the time a week ago still did not have profits if they sold in today's session. With a buying - selling difference of 3 million VND/tael, people who bought SJC gold bars on September 12 and resold them on September 19 at SJC or DOJI still suffered a loss of about 1.4 million VND/tael.
Not only gold bars, buyers of 9999 gold rings also face a similar situation. At DOJI, the price of gold rings is listed at 144 - 148 million VND/tael, the buying - selling difference is up to 4 million VND/tael. Meanwhile, Phu Quy listed gold rings at 144.6 - 147.6 million VND/tael, with a difference of 3 million VND/tael.
If you buy gold rings at DOJI on September 12 and sell them on September 19, buyers will suffer a loss of about 3 million VND/tael.
With gold rings in Phu Quy, the loss is about 1.8 million VND/tael.
This shows that the increase in gold prices in the week is not enough to compensate for the difference in transaction costs that buyers have to bear.
World gold recovers thanks to many supporting factors
On the international market, gold prices had a volatile trading week. As of 9:15 am on September 19, world gold prices stood around 4,377 USD/ounce, up 29.3 USD compared to the same time a week ago.
In the first sessions of the week, gold prices faced strong selling pressure as oil prices rose, US Treasury bond yields approached highs, and the market increased expectations that the US Federal Reserve (Fed) would continue to maintain tight monetary policy.
Spot gold prices at one point fell to nearly 4,279.3 USD/ounce on September 16, the lowest level in more than a month. Selling pressure increased as investors assessed the impact of inflation risks and the possibility of the Fed raising interest rates.
After that, the market reversed when the Fed decided to raise interest rates by another 25 basis points, bringing the target interest rate range to 3.75% - 4%. Along with that, oil prices fell again, the USD weakened and US bond yields cooled down, creating more momentum for gold recovery.
Gold prices once rose to a weekly high of nearly 4,400.6 USD/ounce before slightly adjusting to around 4,377 USD/ounce at the end of the week. This recovery helped gold end its three-week consecutive decline.
In the context of continuous strong fluctuations in gold prices, investors need to pay special attention to the risks when buying gold at high prices. A large buy-sell difference can cause buyers to suffer losses even when gold prices increase. Using financial leverage to invest in gold carries great risks, and at the same time, it is necessary to avoid the psychology of FOMO (buy in the crowd) when the market increases sharply.
The article only updates the developments of the gold market and factors affecting the price of precious metals, not investment recommendations.
