Experts say that the fluctuation trend of gold rings will still depend heavily on world price developments and may increase dramatically if world gold prices increase sharply.
For more than 3 weeks now, the price of SJC gold bars and gold rings has been continuously increasing; in which, the price of gold rings has adjusted faster and followed the world's increasing pace.
Experts say that the fluctuation trend of gold rings will still depend heavily on world price developments and may increase dramatically if world gold prices increase sharply.
Updated on the afternoon of October 25, the world gold price stood at 2,728 USD/ounce. After converting to the bank USD price, the world gold price is equivalent to about 83.7 million VND/tael, including taxes and fees, about 3.3 million VND/tael lower than the domestic gold price.
Meanwhile, in the domestic market, the price of SJC gold bars is being maintained at a stable level of 87-89 million VND/tael (buy-sell) at all suppliers such as Saigon Jewelry Company Limited (SJC), DOJI Jewelry Group, Bao Tin Minh Chau Company Limited...
The price of gold rings is closely following and still maintaining the same price as SJC gold bars. Updated at 3 p.m., Saigon Jewelry Company listed the price of gold rings at 87-88.5 million VND/tael (buy-sell), DOJI Jewelry Group listed the price of Hung Thinh Vuong gold rings at 87.9-88.9 million VND/tael... down 100,000 VND/tael compared to the trading session of gold rings in the early morning of the same day.
According to Mr. Truong Vi Tuan, expert at Giavang.net, the domestic gold market is affected by the price movements of the world gold market; however, it is mainly due to the psychological factor of buying by people in the country, at this time, most of them are worried about losing the opportunity to make a profit; especially when the gold supply to the market is gradually drying up.
Although the domestic gold ring price sometimes goes against the world gold price, it still maintains a relatively stable and reasonable distance compared to the world gold price. However, because gold rings are not subject to price stabilization policies like gold bars, gold ring transactions still follow the supply and demand rules of the domestic market. Currently, there is still a local shortage of goods in some places in the domestic gold market.
Mr. Tuan predicts that, in the immediate future, the fluctuation trend of gold rings will still depend heavily on the development of world prices and may increase dramatically if world gold prices increase sharply.
Mr. Truong Vi Tuan said that in the current situation, the world gold price will continue to increase due to many reasons such as the BRICS bloc led by China and Russia has met and made many important decisions affecting the market and investor psychology.
Although the USD has only increased in value compared to 6 currencies in the IMF's currency basket including: British Pound, Euro, Japanese Yen, Canadian Dollar, Swiss Franc and Swedish Krona, in some ways, investors around the world believe that this will be a threat to the USD in the future, so they are and will increase their gold purchases. Meanwhile, the International Monetary Fund (IMF) also met this week and commented that the global economy will grow lower than expected.
The IMF said in its updated World Economic Outlook released Tuesday that global economic growth next year is expected to reach 3.2%, down 0.1 percentage point from its July estimate. It kept its forecast for this year unchanged at 3.2%. Inflation will slow to 4.3% next year, from 5.8% in 2024.
Some other reasons can be listed as SPDR Gold Investment Fund is increasing the volume of gold purchases and has purchased more than 10.6 tons of gold last week. In addition, the world gold price has increased due to geopolitical tensions when Iran is worried about Israel's retaliation and it is not clear how it will be implemented. If Israel goes beyond the retaliation, the conflict will continue to be tense and even spread in the Middle East. The above factors have pushed gold to a high level and set a new peak at 2,759 USD/ounce, Mr. Tuan emphasized./
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