Gold prices fall, buyers suffer more pressure from the buying-selling difference
Closing the week's trading session, domestic gold prices simultaneously decreased compared to the end of last week. The downward trend of gold prices, combined with the high buying - selling spread, caused gold buyers on July 12 to suffer a large loss if they sold in today's session.
For SJC gold bars, Saigon Jewelry Company SJC listed prices at 144.5-147.5 million VND/tael, corresponding to the buying and selling prices. The difference between the two directions is at 3 million VND/tael.
Compared to the closing session on July 12, the SJC gold bar price at this enterprise decreased by 2.4 million VND/tael in both buying and selling directions.
DOJI also listed SJC gold bar prices at 144.5-147.5 million VND/tael. Gold prices here decreased by 2.4 million VND/tael compared to the end of last week, while the buying - selling difference is still at 3 million VND/tael.
With the calculation method of buying gold at the selling price on July 12 and reselling it at the buying price on July 19, buyers of SJC gold bars at Saigon Jewelry Company SJC and DOJI both lost 5.4 million VND/tael.
This loss does not only come from the fact that gold prices decreased by 2.4 million VND/tael in the week. Right at the time of purchase, buyers had to bear a difference of 3 million VND between the buying and selling prices of businesses.
In case gold prices do not increase enough to compensate for the difference, short-term buyers may still lose even if the market only adjusts slightly.
Gold rings cause buyers to lose up to 5.8 million VND/tael
A similar development appeared on the 9999 gold ring market. DOJI listed the price of gold rings at 143.3-147.3 million VND/tael, down 1.7 million VND/tael in both directions compared to July 12. The buying - selling difference is up to 4 million VND/tael.
If buying gold rings at DOJI in the July 12 session and selling them in today's session, buyers suffer a loss of 5.7 million VND/tael.
At Phu Quy Jewelry Group, the price of gold rings is listed at 143-146.5 million VND/tael. Compared to the end of last week, the price of gold rings here decreased by 2.3 million VND/tael in both buying and selling directions.
The buying - selling difference at Phu Quy is at 3.5 million VND/tael. Gold ring buyers on July 12, if resold in the session on July 19, will lose up to 5.8 million VND/tael - the highest level among the products surveyed.
Thus, in the past week, gold ring buyers suffered a double impact from the decrease in gold prices and the high buying-selling difference. The difference of 3.5-4 million VND/tael creates a major barrier for those who expect to make a profit in a short time.
World gold prices fall by more than $100/ounce
The downward pressure of domestic gold prices occurred in the context of strong fluctuations in the world market. Closing the weekly trading session, world gold prices were listed at 4,017.3 USD/ounce, down 102.1 USD compared to a week ago.
The sharp decrease in world gold prices has affected domestic market sentiment. In the context of strong fluctuations in international prices, the buying-selling spread in the country is still maintained at a high level.
In the current context, buyers should not follow FOMO psychology, that is, fear of missing opportunities when gold prices appear with rapid increases.
In addition, the world gold market is still fluctuating strongly, prices may reverse quickly in the face of economic information, monetary policy and risk-prevention sentiment of international investors.
Buyers need to carefully consider their holding targets, risk tolerance and especially monitor the buying-selling difference before depositing money.
The article only reflects the developments of the gold market, not a buy or sell recommendation.
