Gold price peaked and then reversed, should we buy or sell now?

However, the gold price is still hovering around VND102 million/tael. Many forecasts show that after a strong increase, the domestic gold price will turn down in April and May, possibly falling to around VND90 million/tael.

Gold prices peak and then fall

At 4:30 p.m., Saigon Jewelry Company listed the price of SJC gold bars at VND99.4 - 102.1 million/tael, down half a million VND/tael compared to late morning after reaching a peak of VND102.6 million/tael.

Businesses also adjusted the price of SJC gold bars down to 102.1 million VND/tael. The difference between buying and selling prices of SJC gold bars widened to 2.7 million VND/tael.

The price of gold rings was also adjusted down accordingly. Specifically, Bao Tin Minh Chau Company Limited, after increasing to the peak of 102.7 million VND/tael in the morning, also adjusted to 99.8 - 102.3 million VND/tael, down 400,000 VND/tael compared to the morning. The difference between buying and selling prices widened to 2.5 million VND/tael.

Phu Quy Gold and Gemstone Group listed the price of gold rings at 99.4 - 102.1 million VND/tael for buying and selling.

At the same time, the world gold price was listed at 3,131 USD/ounce, down 9 USD/ounce compared to the morning trading session. The world gold price is equivalent to 97.5 million VND/tael.

When the gold price turned down, many investors instead of buying quickly took profits because they were afraid that the gold price would drop further. The proof is that today, Tran Nhan Tong gold street (Hai Ba Trung district, Hanoi) no longer has the phenomenon of people lining up to buy, only customers coming to sell.

People came to take profits at a gold shop on Tran Nhan Tong Street (Hanoi) instead of buying on April 1 when the gold price exceeded 102 million VND/tael (photo: NM).

Ms. Thu Phuong (in Dong Da, Hanoi) sold 10 taels of gold bought at the beginning of the year. "In just 3 months, I made a profit of nearly 200 million VND with an initial capital of nearly 800 million VND. This profit was more than I expected, so I took the profit. Although many predictions said that the gold price would continue to increase to 150 million VND/tael, I still waited for a decrease to turn around."

Gold price may drop to 90 million VND/tael?

Gold expert Tran Duy Phuong analyzed that the domestic gold price increased sharply because the world gold price was supported to reach its peak, due to factors such as concerns about tariff risks, high inflation, instability in the world financial market; the fact that central banks and gold investment funds increased their gold reserves...

"When the gold price is high, investors have a profit-taking mentality, the gold price needs a necessary adjustment step, but this period is not like before. It is forecasted that the price decline will only take place in April and May, with a total decrease of about 300 USD/ounce, bringing the gold price from the peak down to about more than 2,700 USD/ounce. If divided into proportions, in the period of 2011 - 2015, the gold price decreased from about over 1,900 USD/ounce to about 1,000 USD/ounce, a decrease of nearly 50%; currently it has decreased from over 3,000 USD/ounce to more than 2,700 USD/ounce, a decrease of only about 10-12%", Mr. Phuong said.

Mr. Phuong predicted that the gold price will gradually decrease and fall below 2,900/ounce in April and below 2,800 USD/ounce in May. "Along with the downward trend of world gold prices, domestic gold prices are expected to fall to around 90 million VND/tael for sale," Mr. Phuong said.

However, in the long term, Mr. Phuong said there are still many factors supporting gold prices. After the necessary adjustment, gold prices are forecast to move sideways and gradually increase again, possibly even surpassing the $3,000/ounce mark, reaching around $3,200/ounce. However, in the medium and long term, there are still many factors supporting gold prices.

Also discussing the price of gold, an expert said that investors selling gold at the current price is good when transferring cash flow. Those who still "hold gold as good" should review the history of gold prices. Gold often has quite strong price fluctuations when the world economy is in difficulty or in crisis. In 2008, the financial crisis occurred, gold prices continuously increased, then reached a historical high in 2011 at nearly 1,900 USD/ounce.

Thus, compared to the current price, the price of gold has increased by 1,200 USD/ounce, an increase of 63%. Meanwhile, if saving money in a bank with an average interest rate of about 7%/year, over the past 15 years, the depositor has received about 100% interest. Therefore, in the long term, the profit from the increase in gold price is not equal to the profit from saving money. That is the reality that people who rush into gold regardless need to consider carefully.

According to Ngoc Mai (TPO)

Source: https://baogialai.com.vn/gia-vang-lap-dinh-roi-quay-dau-nen-mua-hay-ban-luc-nay-post317216.html