Domestic gold price developments
At the beginning of the week (September 14), the price of SJC gold opened the trading session at 104.5-107 million VND/tael (buy - sell), an increase of 1.8 million VND/tael for buying and an increase of 800,000 VND/tael for selling compared to the previous session.
Meanwhile, the gold ring price at DOJI opened at 101.2-104.8 million VND/tael (buy - sell), an increase of 200,000 VND/tael for both buying and selling.
Since then, gold prices have continuously increased strongly. The session on April 17 recorded a shock for the entire market when the price increased to 9.2 million VND/tael, setting a new record.
The price of SJC gold bars was listed by Saigon Jewelry Company at VND 115.5-118 million/tael (buy - sell), an increase of VND 8.7 million/tael for buying and an increase of VND 8.2 million/tael for selling compared to a previous session.
The price of Hung Thinh Vuong 9999 round gold rings at DOJI was listed at 114-117 million VND/tael (buy - sell), an increase of 9.2 million VND/tael for both buying and selling compared to a previous session.
Although prices have increased sharply, prices have not stopped. By the session of April 18, domestic gold prices continued to increase to VND2 million/tael, bringing the precious metal to an all-time high of VND120 million/tael. The difference between buying and selling is widened to 3.5 million VND/tael, causing investors to face the risk of losses.
However, this strong price increase was suddenly cut short in the session of April 19. The price of SJC gold bars was listed by some units such as Saigon Jewelry Company SJC, DOJI and Bao Tin Minh Chau at 113.5-117.5 million VND/tael (buy - sell), down 3.5 million VND/tael for buying and down 2.5 million VND/tael for selling compared to a previous session. The difference between buying and selling prices is at 4 million VND/tael.
Bao Tin Minh Chau listed the price of gold rings at 113.2-117 million VND/tael (buy - sell), down 3.3 million VND/tael for buying and down 2.5 million VND/tael for selling. The difference between buying and selling is 3.8 million VND/tael.
At the end of the trading session of the week, prices continued to decrease. SJC gold price was reduced to 112-114 million VND/tael (buy in - sell out). Plain gold rings also decreased to around 109.5-113.5 million VND/tael (buy in - sell out).
Reasons for the decline in domestic gold prices
After a week of soaring, domestic gold prices have turned sharply down following the direction of Deputy Prime Minister Ho Duc Phoc, requesting the State Bank to coordinate with relevant agencies to urgently deploy solutions to stabilize the market.
Statistics show that the domestic gold market has increased too much compared to the world. On April 17, the world gold price increased by 68.9 USD/ounce within 24 hours - equivalent to about 1.7 million VND/tael at that time. However, also on this day, domestic gold prices increased by 9 million VND/tael.
For the whole week, SJC gold bars at the DOJI system increased by 9 million VND/tael for buying and 7.5 million VND/tael for selling. Gold rings increased by 8.3 and 8.7 million VND/tael, respectively. Meanwhile, the world gold price increased by only 91 USD/ounce, equivalent to about 2.83 - 2.86 million VND/tael when converted to Vietcombank exchange rate (25,760 - 26,120 VND/USD).
The increase in domestic gold is therefore about 2.6 - 3.2 times higher than the world. This reflects excessive excitement, leading to the domestic market being pushed to an unreal price range.
After the management direction, domestic gold prices have had a strong adjustment. From the historical peak of 120 million VND/tael, the selling price has now decreased to 114 million VND/tael. However, this price is still higher than the world gold price of about 7 - 10.7 million VND/tael. On the morning of April 20, the world gold price was anchored at 3,327 USD/ounce, equivalent to 103.3 - 104.76 million VND/tael.
Not only the difference compared to the world, the market also recorded a huge buying - selling gap, up to 4 million VND/tael. This development puts retail investors at risk of losing money as soon as the market adjusts.
