Gold cools down
At the end of February 20, the price of SJC gold bars was listed by large enterprises at 75.9-78.2 million VND/tael (buy - sell), an increase of 400,000 VND for selling and 500,000 VND for buying compared to the opening time of the session. The difference between buying and selling prices is currently 2.3 million VND per tael. Previously, on the trading session of God of Wealth Day (February 19), the difference between buying and selling prices at gold brands was up to 3 million VND.
Gold rings are listed at 63.2-64.6 million VND/tael (buy - sell), unchanged from yesterday but compared to the session on God of Wealth day, each afternoon has decreased by 200,000 VND/tael.
Gold is displayed for sale at a store in Hanoi (Photo: Manh Quan).
On the international market, gold is trading at around 2,023 USD/ounce. Converted at the exchange rate excluding taxes and fees, the precious metal is equivalent to 60 million VND/tael. Accordingly, each tael of domestic gold bars is about 1 million VND higher, while each tael of gold rings is 4.4 to 5 million VND higher than the world price.
The world gold price is currently significantly lower than the historical peak of 2,135 USD/ounce in December 2023, but analysts at Citi Bank believe that gold could reach 3,000 USD/ounce in the next 12-18 months.
Accelerating de-dollarization by emerging market central banks is expected to push gold prices to $3,000, potentially doubling central bank buying. Jewelry remains the main driver of gold demand. "This trend is happening, but it's slow. If it accelerates, it could trigger a crisis of confidence in the dollar," said Aakash Doshi, head of commodity analysis for North America at Citi.
A World Gold Council (WGC) report in January showed that central banks had net bought more than 1,000 tonnes of gold for the second consecutive year. “If that number doubles, we think it will be a big boost for gold prices,” said Aakash Doshi.
Under normal conditions, this unit forecasts that the average gold price will be around 2,000-2,150 USD/ounce in the second half of this year. Citi Bank even expects the price to reach a new peak by the end of the year.
Free USD price is still high
The USD-Index - an index measuring the greenback's strength against a basket of major currencies - remained at 104.2 points, up 2.83% from the beginning of the year.
The central exchange rate at the end of yesterday's session was listed by the State Bank at 23,988 VND/USD, up 9 VND compared to the previous session. With the current 5% band, the USD price at commercial banks is allowed to fluctuate from 22,637 VND to 25,187 VND.
Major banks listed the buying and selling rates at 24,330-24,700 VND/USD (buying and selling), up 20 VND each way compared to before. At joint stock banks, the price was 24,340-24,805 VND/USD.
In the free market, the USD price is at 24,970-25,070 VND/USD, up 70 VND for selling and 50 VND for buying compared to before.
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