Just soaring, SJC gold price drops shockingly
December 26 was a crazy day for the domestic market. In the morning session, the price of SJC gold increased by the minute, reaching a peak of VND80.30 million/tael before the lunch break. Compared to yesterday's closing price, SJC gold increased by nearly VND1.9 million/tael.
However, by the afternoon, the price of gold had plummeted by the minute. By the end of the day, the price of gold had all moved away from the 80 million VND/tael mark. However, the heaviest loss that investors had to bear was not the sharp drop in the price of gold, but the gap between the selling and buying prices that the "gold shops" had widened to an unprecedented high in 2023.
Specifically, at Doji Group, the price of SJC gold is listed at: 77.20 million VND/tael - 79.20 million VND/tael, down 1.1 million VND/tael for selling but down 1.9 million VND/tael for buying. This move by Doji makes the selling price 2 million VND/tael higher than the buying price, double compared to this morning.
Investors lined up to trade gold on the day SJC gold price reached an all-time high of VND80.30 million/tael. Photo: Hoang Tu
Similarly, Saigon Jewelry Company - SJC and Saigon Jewelry Company - SJC also adjusted the gold price down by nearly 2 million VND/tael for buying but only down by more than 1 million VND/tael for selling.
SJC gold price at SJC and PNJ is currently trading at: 77.40 million VND/tael - 79.20 million VND/tael. The difference between the selling and buying price of SJC gold at SJC Company increased from 1 million VND/tael to 1.8 million VND/tael.
The lowest selling price of SJC gold in the market belongs to Bao Tin Minh Chau Company. The selling price at Bao Tin Minh Chau was adjusted down by 1.2 million VND/tael to 79.10 million VND/tael. The buying price at this "gold house" is 77.40 million VND/tael.
Meanwhile, the price of non-SJC gold has a much slower "falling" speed, only about 300,000 VND/tael.
At PNJ Company, PNJ gold price is being bought and sold at: 62.55 million VND/tael - 63.65 million VND/tael. At Bao Tin Minh Chau, Thang Long dragon gold price is being traded at: 63.33 million VND/tael - 64.38 million VND/tael.
Lost 3 million VND/tael before reaching home
Gold prices fluctuate by the minute, making investors "smile" in the morning session but "heartbroken" in the afternoon session.
Sharing with reporters of the Journalist and Public Opinion newspaper, Ms. Le Tam (Hang Bong, Hanoi) said that at noon she went to buy gold at the "peak" price of 80.30 million VND/tael. She bought 2 taels, then went to her daughter's house for a bit. In the afternoon, before she could get home, she saw the price of gold plummet and she suffered a huge loss in just a few hours.
“At first, when my daughter said the gold price had dropped by more than VND1 million per tael, I thought I had only lost a little bit. However, when I looked at the online trading board, I realized I had lost more than VND3 million per tael because the difference between the selling price and the selling price had been raised to VND2 million per tael, not VND1 million per tael like in the morning. After just a few hours of buying 2 taels of gold, I had lost nearly VND6 million,” Ms. Tam lamented about her unexpected loss.
Notably, not only investors who "hit the peak" on December 26 lost money, those who bought gold at the end of yesterday also shared the same "fate".
At the close of the session on December 25, the selling price of SJC gold was commonly listed by gold dealers at VND78.50 million/tael. Therefore, compared to the closing price at the beginning of the week, SJC gold still increased by VND700,000/tael. However, because the selling price is up to VND2 million/tael higher than the buying price, even though the price of SJC gold is still increasing, buyers still lose up to VND1.3 million/tael.
SJC gold price is 17.60 million VND/tael more expensive than world gold price
Despite the "free fall" on the afternoon of December 26, in the first two trading days of the new week, SJC gold price is still much higher than world gold price.
The price of SJC gold is 17.60 million VND/tael more expensive than the world gold price. This is a risky level for gold buyers. Illustrative photo
Specifically, after the holiday, the gold market restarted with gloom but the world gold price still increased due to the weakening of the US dollar and bond yields in the face of increasing prospects of a rate cut by the US Federal Reserve (FED) in early March next year.
Spot gold rose 0.5% to $2,063.78 an ounce after hitting a more than two-week high of $2,070.39 in the previous session. U.S. gold futures rose 0.3% to $2,074.90 an ounce.
At the world gold price of 2,063.78 USD/ounce, the converted SJC gold price is about 61.62 million VND/tael. Thus, the SJC gold price is 17.60 million VND/tael more expensive than the world gold price. This figure was 18 million VND/tael this morning. This is an extremely high level, potentially bringing many risks to investors.
“Gold prices continued to rise in the new week, after receiving weaker-than-expected US personal consumption expenditure data last Friday, which confirmed the dovish rate expectations that the market was pricing in,” said IG market strategist Yeap Jun Rong.
“As long as the economic data trend remains intact, gold prices could be headed for another breakout and above $2,080 an ounce,” Yeap added.
Data on Friday showed US prices fell in November for the first time in more than 3-1/2 years, pushing the annual inflation rate below 3%.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Traders are currently pricing in an 89% chance that the US central bank will cut interest rates in March, according to the CME FedWatch tool.
The dollar index fell 0.1%, making gold more attractive to holders of other currencies, while the yield on 10-year U.S. Treasuries fell to 3.8838%.
Meanwhile, the US military carried out precision airstrikes in retaliation in Iraq after a one-sided drone attack earlier on Monday by Iran-linked militants left three US soldiers injured.
Gold is considered a safe haven asset during times of geopolitical uncertainty.
Markets in Australia, New Zealand, Hong Kong and the Eurozone are closed on Tuesday for the Boxing Day holiday.
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