On November 29, the price of gold broke the historical peak set in March last year in both buying and selling directions. Accordingly, the price of SJC gold bars was listed by large stores in Hanoi at 72.2 million VND/tael for buying and 73.7 million VND/tael for selling, an increase of 700,000 VND for buying and 1.1 million VND for selling.
Although not increasing as strongly as yesterday, the gold price on November 30 still maintained its peak when SJC gold bars were bought at 72.4 million VND/tael and sold at 73.6 million VND/tael. The difference in the selling price of gold is still 1.4 million VND/tael higher than the buying price.
The price of plain round gold rings remained at yesterday's peak when it was listed at VND61.3 million/tael for buying and VND62.4 million/tael for selling, up VND400,000 each way. The difference between the two directions was VND1.1 million. Last week, gold rings also increased for 7 consecutive sessions.
Compared to the price of about 54 million VND/tael for gold rings and more than 66 million VND/tael for SJC gold bars at the beginning of the year, currently SJC gold bars have increased by more than 10%, while gold rings have increased by up to 14%.
Gold prices continue to exceed peaks
In response to the positive developments in gold prices recently, two economic experts, Dr. Nguyen Tri Hieu and Associate Professor Dr. Dinh Trong Thinh, both said that due to the impact of the economy and stagnant production and business, people have chosen to buy gold with the mindset that they can “keep the price”. In addition, usually at the end of the year, the demand for buying and accumulating gold also increases.
Reasons for money flowing into precious metals
According to Dr. Nguyen Tri Hieu, many factors creating market uncertainty have pushed up gold prices, such as the Vietnamese economy facing many difficulties. Although the economic growth target has been lowered to 5%, it is very difficult to achieve.
Specifically, the economy's import and export decreased, public investment disbursement decreased, more and more businesses stopped operating and went bankrupt, while banks could not push capital into the economy.
In addition, the Van Thinh Phat scandal also caused panic among the people, creating a shock in the financial world. Since then, people have tended to buy gold with the mentality that they can still "keep the price", which is also the reason why gold prices have reached their peak.
Explaining the recent fluctuations in gold prices, Associate Professor Dr. Dinh Trong Thinh said that it was due to the influence of international gold prices surpassing the resistance level of 2,060 USD/ounce.
This is due to the fact that inflation remains high, the world economy is stagnant and many other factors are difficult to break through such as production not growing, the stock market is "fluctuating". Therefore, many countries buy gold to store as collateral such as China, India, Brazil, ... causing the general price of gold in the world to increase.
In the domestic market, Associate Professor Dr. Dinh Trong Thinh said that the international price will be affected but there will be a large difference. The reason is that Vietnam has stricter management of gold transactions.
Specifically, after the State Bank issued Circular 12 amending and supplementing a number of articles of legal documents regulating the implementation of the task of managing the State foreign exchange reserves, rumors appeared that gold bars would not be traded. This made many people think that buying gold bars would be difficult. Therefore, people rushed to buy gold, causing the price of this commodity to increase.
The second reason is that interest rates have been continuously decreasing recently, making investment difficult, so money tends to flow into precious metals. Finally, currently in the final stage of the year, the demand for buying gold jewelry for weddings and engagements has increased, which also affects the price of gold.
Should I buy or sell at this point?
Given the recent fluctuations in gold prices, Dr. Nguyen Tri Hieu said that the exchange rate may increase from now until the end of the year, economic activities are still slow, and the Vietnamese Dong may continue to depreciate in the coming time, which will push up gold prices.
However, it is difficult to predict whether the price of gold will go up or down in the near future, and gold buyers may face risks. Mr. Hieu said that investors should absolutely not borrow money to buy gold, and should only use 1/3 of the money they have to buy gold, and divide it into other investment channels such as savings, stock investment or real estate.
Meanwhile, Associate Professor Dr. Dinh Trong Thinh said that the erratic fluctuations in the USD/VND exchange rate will affect the world gold price, and people should not expect too much that the gold price will increase.
Currently, domestic gold prices are not in sync with world gold prices, but in the long term, prices will still fluctuate up and down according to world gold prices.
“Investors should be cautious with the current increase, avoid buying at high prices and selling at low prices. In the long term, prices will still fluctuate according to world gold prices, so they are likely to go down in the near future,” Mr. Thinh advised gold buyers.
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