Gold prices fluctuate unpredictably

Quite unexpected developments occurred in the domestic gold market amid sharp declines in the prices of SJC gold bars and gold rings.

At the end of November 12, the price of SJC gold bars was listed by Saigon Jewelry Company (SJC) at 80.6 million VND/tael for buying and 84.1 million VND/tael for selling, down about 1.4 million VND/tael compared to 1 day ago. From the peak of over 90 million VND 2 weeks ago, each tael of gold bar has "evaporated" more than 6 million VND/tael.

No more sell-offs

The price of gold rings and 24-karat gold jewelry of all kinds also plummeted, to only 80 - 82.5 million VND/tael (buy - sell), down nearly 2 million VND/tael and "evaporated" more than 7 million VND from the peak of nearly 90 million VND.

Notably, although the price of gold has dropped sharply, the market is no longer seeing people rushing to sell gold like in previous days. Instead, gold companies and shops are quite deserted, with very few buyers. Most people are anxiously awaiting the upcoming developments of world gold prices.

At the headquarters of SJC Gold Company in District 3, Ho Chi Minh City, there were a few customers coming to buy and sell gold. The transactions took place quite quickly, without queuing or having to wait for their turn like in previous days. Customers can buy SJC gold bars or gold rings according to their needs at the counter, in addition to registering online on the company's website.

Some customers who came to sell gold said that they saw the gold price drop rapidly and had urgent family needs, but did not intend to sell at a loss. On the other hand, some people went to "probe" buying from a few taels to 1-2 taels when they saw the gold price drop. "When the gold price was 90 million VND/tael, I thought it was too high so I did not buy. After more than a week, the gold price dropped to 84.5 million VND/tael, so I decided to buy to save" - ​​Ms. Thanh held a tael of gold she had just bought at the counter of SJC Company, shared.

Deserted scene at SJC Gold Company headquarters on the day gold prices plummeted

At the Phu Nhuan Jewelry Company (PNJ) branch on Hai Ba Trung Street (District 1, Ho Chi Minh City), transaction staff said the number of customers transacting was normal as usual, without any sudden changes. There was also no situation of customers rushing to sell or buy gold.

Not only at gold companies, the trading situation is quiet. Walking around the gold street area at Ben Thanh market, Le Thanh Ton street (District 1); Tan Dinh market area (District 1), the reporter noted that the shops were quite empty. When the staff of a gold company saw us coming to ask about the trading situation, they jokingly said: "The price of gold has decreased, no one is going to buy; when the price increases sharply, customers will come to line up"...

Need to control the mind

Talking to reporters of Nguoi Lao Dong Newspaper, gold expert Tran Duy Phuong said that the domestic gold market in the past few days has seen overwhelming selling pressure after the world gold price plummeted on the day Donald Trump was elected President of the United States. The large selling pressure forced gold companies to continuously adjust the prices of SJC gold bars and gold rings. At some point, gold shops and companies had to stop buying when the selling pressure was too strong, but now, customers can buy gold according to their needs instead of only being able to buy 1-2 taels like before.

"The world gold price is forecast to fall further to 2,500 - 2,550 USD/ounce according to the cycle after the shocking increase in the past few months. If this forecast happens, the domestic gold price will continue to fall. However, I predict that the adjustment may be in the short term, but in the long term, the low interest rate environment when the US Federal Reserve (FED) and many central banks of other countries adjust to lower long-term interest rates will push the gold price to increase again," Mr. Phuong predicted.

Economist - Dr. Nguyen Tri Hieu said that after Mr. Donald Trump won the US presidential election, the USD index increased sharply, exceeding 105 points, the financial market improved. Next, the FED reduced interest rates by 0.25%, to 4.5% - 4.75%. Normally, when the FED reduces interest rates, the USD index will decrease, but the market is moving in the opposite direction. This affects the gold price. The world gold price decreased immediately after the FED lowered interest rates. "The price of SJC gold bars and gold rings also decreased following the world, but it was only a short-term adjustment, the medium and long-term trend of gold is still positive" - ​​Dr. Nguyen Tri Hieu said.

This expert predicts that the world gold price from now until the end of the year may increase again to 2,800 USD/ounce in the context of the FED reducing interest rates and the USD cooling down. However, the specific fluctuations of the gold price will depend on Mr. Trump's policies towards the US and global economy.

"Gold prices are very unpredictable under Trump, but before he officially enters the White House in January 2025, gold prices may increase again. In the domestic market, gold bar and ring prices are affected by world prices and gold supply. If gold supply is limited and demand remains, gold prices will increase, but people need to control their psychology and avoid being disturbed during times of strong price fluctuations," said Dr. Hieu.

Source: https://nld.com.vn/gia-vang-bien-dong-kho-luong-19624111221103135.htm