SJC gold price is 14.6 million/tael higher than world price: What should you pay attention to when investing in gold?

Domestic gold prices this morning increased sharply by 2 million VND per tael as soon as the market opened, despite the rapid decline in world gold prices. SJC gold bars soared to a peak of 120 million VND per tael, while gold rings rose to 117 million VND. With the current price of 3,329 USD per ounce, the converted world gold price is 105.4 million VND per tael.

Thus, the price of SJC gold is 14.6 million VND/tael higher than the world price.

In the context of soaring gold prices, people are still rushing to buy, financial expert Nguyen Tri Hieu commented that there is currently no specific ceiling limit for gold prices.

“In the coming days, domestic gold prices may increase. World gold prices may reach $3,500/ounce,” Mr. Hieu predicted.

However, he also warned that when gold prices increase as much as they do now, the market will be fraught with many risks, especially in the context of scarce supply, causing prices to become "hot" and at risk of plummeting when reaching saturation point.

“In addition to risks from market fluctuations, investors also face risks from the difference between buying and selling prices. Therefore, buyers need to carefully calculate to control these risks,” Mr. Hieu recommended.

In particular, he emphasized that investors should not buy and sell gold in a "surfing" style because it would be very dangerous. Instead, they should allocate financial resources reasonably into many different investment channels.

Investors should not buy and sell gold in a "surfing" style. Illustration: Chi Hieu

“At this time, investors need to maintain a stable mentality, avoid being influenced by the crowd effect and control FOMO syndrome - the fear of missing out on opportunities,” Mr. Hieu added.

Mr. Truong Hien Phuong - Senior Director of KIS Vietnam Securities - explained that the "dizzying" increase in gold prices in recent days mainly stems from the violent fluctuations in the international financial market, especially the escalating trade tensions between the world's two leading economies, the US and China.

According to Mr. Phuong, the scarcity of domestic supply has created great pressure, causing domestic gold prices to increase faster and stronger than world gold prices. Meanwhile, the market currently lacks effective regulatory measures to ensure stable supply in the short term.

Another factor that has added fuel to the rally is the weakening of the US dollar against major currencies. As the greenback loses value, gold, which is priced in US dollars, becomes more attractive to international investors.

In addition, the market is also expecting the US Federal Reserve (Fed) to continue cutting interest rates to deal with the risk of slowing growth due to global trade instability. “Lowering interest rates will reduce the attractiveness of assets such as government bonds, thereby encouraging investors to seek gold,” Mr. Phuong commented.

According to this expert, gold prices are benefiting from concerns about US tariff policies towards other countries. The market is closely monitoring the moves of US President Donald Trump as well as the reaction from China.

“If in the near future, the two sides make progress in negotiations or reach an agreement on tariffs, gold prices may fall sharply,” Mr. Phuong warned.

Experts also warn that due to the strong fluctuations in gold prices, many businesses have pushed the risk onto buyers by widening the buying and selling price range to 2.5-3 million VND/tael.

Therefore, those who are holding gold, gold investors should consider taking profits when the profit reaches about 30% to preserve the investment results. In case they want to buy at the present time, investors need to carefully assess whether there is still much room for price increase or not.

Vietnamnet.vn

Source: https://vietnamnet.vn/gia-vang-sjc-cao-hon-the-gioi-14-6-trieu-luong-dau-tu-vang-can-luu-y-gi-2392304.html