Non-SJC gold price is much stronger than SJC gold and world gold

Non-SJC gold price is exceptionally strong

Over the past time, the precious metals market has witnessed the outstanding heat of SJC gold. If the price of SJC gold increases, the price of non-SJC gold increases very strongly. If the price of SJC gold decreases, the price of non-SJC gold still maintains its upward momentum. In the week from July 17 to July 22, 2023, this scenario repeated itself.

At the end of the week, at Bao Tin Minh Chau Jewelry Company, the price of Thang Long Dragon gold stopped at 56.23 million VND/tael - 57.08 million VND/tael, an increase of 150,000 VND/tael for buying (equivalent to 0.27%) and an increase of 150,000 VND/tael for selling (equivalent to 0.26%) compared to the end of last week.

At the gold and silver "big guys", this optimistic situation also occurs with non-SJC gold.

At Phu Nhuan Jewelry Company, PNJ gold price closed the week at 56 million VND/tael - 57.1 million VND/tael. At Sacombank-SBJ Company, the price of 1-tael Gold Loc (God of Wealth, Lucky Bag, Gourd, Bodhi Leaf, Quy Linh, Gold Bar, Pisces, Trao Yeu Thuong...) traded at: 55.56 million VND/tael - 58.46 million VND/tael.

The price of non-SJC gold is much stronger than SJC gold and world gold, picture 1 — Despite the slight decrease in SJC gold price and world gold price, non-SJC gold price still maintained its upward momentum. Illustrative photo

Meanwhile, SJC gold decreased slightly.

Bao Tin Minh Chau listed the price of SJC gold at 66.55 million VND/tael - 67.15 million VND/tael, down 220,000 VND/tael for buying (equivalent to 0.33%), down 180,000 VND/tael for selling (equivalent to 0.27%) compared to the end of last week.

At the end of the week, the price of SJC gold at Saigon Jewelry Company – SJC stopped at 66.40 million VND/tael – 67.10 million VND/tael. At PNJ, the price of SJC gold “closed” the week at: 66.45 million VND/tael – 67.10 million VND/tael.

SJC gold prices fluctuated within a narrow range despite a week of ups and downs in world gold prices. In the middle of the week, the precious metal jumped to a 2-month high but then quickly declined to $1,960/ounce, down about $2/ounce compared to the end of last week.

At the world gold price of 1,960 USD/ounce, the converted SJC gold price is about 55.92 million VND/tael. Thus, the SJC gold price is more expensive than the world gold price by about 11.18 million VND/tael. It can be seen that the gap between the two markets is widening.

Experts and traders “divided” over gold

The world gold price had a week that brought many different emotions to investors, but ultimately ended in losses. In the new week, the picture of this precious metal is quite dim when experts and traders are "divided" about gold.

While retail traders continue to put their faith in gold's upward momentum, analysts are more cautious about the unpredictable moves of the US Federal Reserve (FED).

Specifically, in the gold surveys conducted by Kitco News, the panel of experts surveyed Wall Street and the panel of retail traders surveyed Main Street.

On Wall Street, 42% of experts predict gold prices will rise next week, 16% think it will be flat and 42% bet on a decline. On Main Street, the percentages are 60%, 26% and 14%, respectively.

In recent weeks, traders have been more optimistic about gold than experts.

Sean Lusk, co-director of commercial hedging at Walsh Trading, said he remains bullish on gold given the Fed’s inability to contain inflationary pressures while supply issues dominate the broader commodity market. However, he added that fighting the Fed in the short term is not worth it.

“Yes, gold could fall $50 next week if the Fed stays hawkish after the rate hike,” he said. “But there’s very little they can do about inflation. You have a bunch of commodities that can’t go up in price other than due to supply issues. There’s all kinds of scarcity in a lot of commodities. For that reason, I think gold should continue to be a buy on the dip.”

James Stanley, market strategist at StoneX, said he sees gold prices rising next week ahead of the Fed meeting and then all bets are off.

Gold's impressive ability to hold above $1,950 an ounce could lead to a retest of $2,000 an ounce ahead of the Fed's deadline, he added.

"Headline CPI has been well contained, but core inflation is still quite high and I don't think they should approach that lightly because the downside risk could be very high. So I think there's a chance of a reversal around mid-week after the FOMC rate decision," he said.

Source