World surges
Gold price movements in the past month are showing a noteworthy paradox: The world market is increasing sharply, but domestic gold prices are going in the opposite direction.
On July 11, the world gold price was at 4,119.4 USD/ounce. By August 11, the price increased to 4,417.9 USD/ounce, an increase of 298.5 USD/ounce, equivalent to about 7.25%.
To compare on the same level, applying Vietcombank's exchange rate on August 11 as 26,350 VND/USD for both times, and converting from ounce to volume, the world gold price on July 11 is equivalent to about 130.87 million VND/tael.
By August 11, the converted world gold price was equivalent to about 140.35 million VND/tael.
Thus, after only one month, the converted world gold price increased by about 9.48 million VND/tael.
Meanwhile, the domestic market decreased.
Domestic gold prices plummet, the gap between the two markets narrows
On July 11, Phu Quy sold SJC gold bars at 149.9 million VND/tael, buying at 146.3 million VND/tael. By August 11, Phu Quy and DOJI both listed gold bars at 142.5-145.5 million VND/tael.
In Phu Quy, the buying price after a month decreased by 3.8 million VND/tael, and the selling price decreased by 4.4 million VND/tael.
At DOJI, from 146.9-149.9 million VND/tael on July 11, both buying and selling directions decreased by 4.4 million VND/tael after a month.
Thus, while world gold increased equivalent to nearly 9.5 million VND/tael, domestic gold bar prices decreased by 4.4 million VND/tael.
Sideways fluctuations have caused the gap between domestic and world gold prices to narrow at a very strong pace.
On July 11, with the selling price of SJC gold bars at Phu Quy and DOJI at 149.9 million VND/tael, while world gold converted is about 130.87 million VND/tael, domestic gold bars are about 19.03 million VND/tael higher than the world price.
By August 11, gold bars were sold at 145.5 million VND/tael, while world gold converted was about 140.35 million VND/tael.
The gap at this time is only about 5.15 million VND/tael.
Thus, in just one month, the difference between domestic and world gold bar selling prices has narrowed to about 13.88 million VND/tael, equivalent to a decrease of more than 70% compared to the difference at the beginning of the period.
A similar trend appears in gold rings.
On July 11, Phu Quy gold rings were sold for 148.8 million VND/tael, about 17.93 million VND/tael higher than the converted world price. By August 11, the selling price was 145.5 million VND/tael, about 5.15 million VND/tael higher than the world price.
This gap has narrowed to about 12.78 million VND/tael.
At DOJI, gold rings sold on July 11 were at 149 million VND/tael, about 18.13 million VND/tael higher than the world price. By August 11, the selling price was 145.8 million VND/tael, the difference with the world price was only about 5.45 million VND/tael.
The difference accordingly decreased by about 12.68 million VND/tael.
The fact that world prices went up, while domestic prices adjusted down, has brought the difference from the 18-19 million VND/tael range down to only around 5 million VND/tael on the selling side.
This is also a factor that investors need to pay special attention to. When the domestic - world gap changes rapidly, domestic gold may not move at the same amplitude, even in the same direction as the world in each period. Therefore, just looking at international gold prices increasing to expect domestic prices to definitely increase correspondingly may lead to wrong buying and selling decisions.
The data and content in the article are only intended to reflect and analyze the developments of the gold market at the mentioned times, not to recommend investment. Gold prices can fluctuate rapidly and be affected by many domestic and international factors. People need to be cautious and consider their financial capacity and risk acceptance before making a transaction.
