Early this morning (December 5), from 6:30 to 9:00, at gold and silver shops on Cao Thang Street (Vinh City), the gold price was listed at 72.9 million VND/tael (buy) and 74.49 million VND/tael (sell) for SJC gold bars; 6.1 million VND/chi (buy) and 6.34 million VND/chi (sell) for 9999 round rings.
However, at 9:30 a.m., the listed numbers were adjusted down sharply, the gold price dropped to 74 million VND/tael. Accordingly, the SJC gold price decreased, currently listed at 72.7-73.9 million VND/tael (two-way buying - selling); The price of 9999 plain gold rings is at 61.65-62.25 million VND/tael, down 800,000 VND/tael.
“After a series of days of high prices, by 9:30 a.m. on December 5, the gold price had fallen below the 74 million VND/tael mark. Domestic gold prices turned to decrease after world gold prices also plummeted due to investors' profit-taking. Currently, the spot gold price on the international market has dropped to 2,033 USD/ounce, down more than 100 USD/ounce compared to the all-time high reached on December 3. Converted according to the VND/USD exchange rate, the world gold price is currently equivalent to more than 60 million VND/tael, about 2.5 million VND lower than the domestic 24k gold price and nearly 14 million VND per tael lower than the SJC gold price,” said Mr. Quang Huy, manager of a gold shop on Cao Thang Street.
Although the price of gold has been constantly fluctuating and sometimes reaching new peaks, in Nghe An, the market has been very quiet in both buying and selling directions. According to observations, in recent days, the number of customers coming to transact at gold shops has been quite low; many gold shops have few people coming in and out. At reputable gold shops, the number of customers is higher, but mainly to buy wedding jewelry; to consult gold prices, but there are no large transactions.
With the foreign currency her children sent back, after conversion, it amounted to more than 1.5 billion VND. If in previous periods, Ms. Trinh Thi Hoa (Thanh Chuong) bought gold bars to store and keep capital for her children, this period, she decided to deposit it in the bank.
“Gold is too high, and I don’t understand the market rules so I don’t dare to take risks. At this time, even though the interest rate is low, I still choose to save money to be safe. I will wait until the gold price is more stable before I dare to buy or switch to buying real estate to make capital for my children,” said Ms. Hoa.
After learning about the high price of gold, up to 74.5 million VND/tael of SJC gold bars and 6.35 million VND/tael of 9999 round rings, Mr. Ho Huy Loi in Ha Huy Tap ward (Vinh city) also went directly to gold and silver shops many times to consult the prices.
According to Mr. Loi, after selling the land at a good price in 2021, he bought gold to store. At that time, the price of gold was 57 million VND/tael. Now, if he sold it, he would have made a profit of nearly 17 million VND/tael.
However, he is still hesitant to sell because it is predicted that the price of gold will increase sharply in the near future. “That is my wife and I’s asset for protection. When we make a profit, we want to sell it, but we heard that the price of gold will increase sharply, so we are not in a hurry,” Mr. Loi shared.
Having been in the gold and silver business for many years, Ms. Kim Dung - owner of a gold shop on Le Loi Street (Vinh City) said: "Although the price of gold has continuously increased and sometimes set new records, in our system alone, the number of customers has not increased but has tended to decrease."
The reason is that the gold price fluctuates constantly, so investors are afraid and do not dare to "put money down". In addition, at the end of the year, businesses and traders are saving money to stock up on Tet goods. The real estate market has shown signs of warming up, causing many people with idle money to turn to land investment. Therefore, in the shops, there are only small transactions, there are no large transactions on the selling side.
The buying side also increased slightly, some people have gold reserves, seeing the high gold price so they sell to make profit, while the majority still believe in the forecast that the gold price will increase in the near future so they are not in a hurry to sell. Moreover, unlike big cities, in Nghe An, the majority of people buy gold for savings, protection, real gold investors are quite few.
BMI - the market research division of data specialist Fitch Solutions - commented: "We believe that the main factors supporting gold prices in 2024 will be the US Federal Reserve (Fed) cutting interest rates, a weaker USD and high geopolitical tensions." Gold is often favored during times of economic and social turmoil because it does not lose value in all economies.
Bart Melek, head of commodity strategy at TD Securities, an investment bank, forecasts that gold prices will average $2,100 an ounce in the second quarter of 2024. He believes that strong buying by central banks will strengthen gold's upward momentum.
The latest survey by the World Gold Council (WGC) shows that 24% of global central banks plan to increase their gold reserves in the next 12 months. They are increasingly skeptical about the role of the US dollar as a reserve asset.
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