Expert: Don't buy or sell when gold prices fluctuate unpredictably

Experts recommend that investors “fasten their seat belts” and limit their purchases, as December could be a bumpy and unpredictable month for this precious metal. According to economic expert, Dr. Nguyen Tri Hieu, domestic gold prices fluctuate according to world gold prices.

Mr. Hieu analyzed that the gold market has two segments: gold bar market and gold ring market. The gold bar market is being controlled in terms of price according to the stabilization program of the State Bank of Vietnam (SBV).

The State Bank of Vietnam has successfully pulled the price from the peak of VND92 million/tael in May down to VND78 million later, but there was a time when gold was nearly VND90 million/tael and has now fallen to over VND85 million/tael.

Gold prices fluctuate unpredictably, experts recommend limiting buying and selling. (Illustration photo).

“The reason for the recent fluctuations in gold prices is due to scarcity and geopolitical fluctuations in the Middle East, especially the US presidential election, which has had a strong impact on the gold market.

Domestically, both gold bars and gold rings are scarce, while gold rings have not been included in the price stabilization program, and the lack of supply has led to unpredictable prices," said Mr. Hieu.

According to this expert, the world gold price fell to 2,683 USD/ounce on the morning of November 10 when Mr. Donald Trump won the US presidential election and the US Federal Reserve (Fed) cut interest rates by 25 basis points.

"Currently, gold prices are subject to many unpredictable fluctuations. Therefore, gold investors should be careful and "fasten their seat belts". They should not buy or sell at this time because it will pose many risks," said expert Nguyen Tri Hieu.

Meanwhile, Vice President of the Gold Association Dinh Nho Bang said that it is very difficult to predict how gold prices will develop in the coming time, because domestic gold prices are affected by fluctuations in world gold prices.

The turmoil in Gaza will affect the price of gold. Therefore, in the coming days, the price of gold in the world will continue to fluctuate.

The domestic gold market will also fluctuate and the state cannot intervene in the gold price nor can it use the gold reserve fund to stabilize the market. The state only regulates the gold market through mechanisms and policies, not by material means such as pumping gold into the market.

"We cannot confirm when the gold price will be adjusted down or up, because we are affected by the world gold price. Therefore, investing in gold at this time will have many potential risks. Therefore, investors need to be very calm and cautious, and should not buy and sell much at this time. Besides, we also do not have a source of gold to buy," said Mr. Bang.

According to Mr. Dinh Nho Bang, our gold market currently has two basic needs. The first is the need to buy gold for speculation and storage. The second is to buy gold as gifts and jewelry during the wedding season.

“The demand for speculation, hoarding, and surfing is endless. Buying gold for jewelry and gifts during the wedding season is not really much. Therefore, when the price of gold is still fluctuating strongly like now, investors should not buy and sell gold. If you buy and sell gold, there is a potential risk of loss,” Mr. Bang warned.

Last week, the price of gold bars increased to over 5 million VND/tael/week, this week it has decreased by more than 2 million VND/tael/week. With this adjustment, investors will find it difficult to find profit, and may even suffer losses if they keep chasing buying and selling.

The world spot gold price ended the week at around 2,650 USD/ounce. Compared to the previous week, the world gold price has dropped sharply by nearly 66 USD/ounce.

Last week, the world gold price witnessed a sharp decline in the first session of the week, losing more than 91 USD/ounce. The world gold price fell freely from above 2,716 USD/ounce, at times reaching 2,619 USD/ounce.

In the domestic market, gold bars are sold by gold and gemstone companies at VND85.8 million/tael. In the buying direction, gold prices of brands are listed at VND83.3 million/tael.

For gold rings, the listed price of SJC 9999 gold is 82.8 million VND/tael for buying and 84.7 million VND/tael for selling.

DOJI brand in Hanoi and Ho Chi Minh City kept the buying and selling prices the same as yesterday morning at 83.8 million VND/tael and 84.8 million VND/tael.

The buying and selling price of PNJ brand gold rings is anchored at 83.6 million VND/tael for buying and 84.7 million VND/tael for selling.

Bao Tin Minh Chau listed the price of plain round rings at 83.68 million VND/tael for buying and 84.78 million VND/tael for selling.

PHAM DUY

Source: https://vtcnews.vn/chuyen-gia-khong-nen-mua-ban-khi-gia-vang-bien-dong-kho-luong-ar910740.html