Price drops below 67 million VND

Báo Quân đội Nhân dânBáo Quân đội Nhân dân20/04/2023


Domestic gold price today

Early this morning, the domestic gold price dropped to 67 million VND/tael. Currently, the domestic precious metal price is listed specifically as follows:

The price of SJC gold in Hanoi and Da Nang is currently 66.35 million VND/tael for buying and 66.97 million VND/tael for selling. In Ho Chi Minh City, SJC gold is still being bought at the same price as in Hanoi and Da Nang but sold at 20,000 VND lower.

DOJI brand gold price in Hanoi is listed at 66.4 million VND/tael for buying and 66.95 million VND/tael for selling. In Ho Chi Minh City, this brand gold is being bought at 50,000 VND lower but sold at the same price as in Hanoi.

Phu Quy SJC gold price is listed at 66.3 million VND/tael for buying and 66.9 million VND/tael for selling. Vietinbank Gold is buying at 66.35 million VND/tael and selling at 66.97 million VND/tael.

Domestic gold price updated at 5:30 am on April 20 as follows:

Yellow

Purchase price

Selling price

DOJI Hanoi

66,400,000 VND/tael

66,950,000 VND/tael

DOJI Ho Chi Minh City

66,350,000 VND/tael

66,950,000 VND/tael

SJC Ho Chi Minh City

66,350,000 VND/tael

66,950,000 VND/tael

SJC Hanoi

66,350,000 VND/tael

66,970,000 VND/tael

SJC Danang

66,350,000 VND/tael

66,970,000 VND/tael

Phu Quy SJC

66,300,000 VND/tael

66,900,000 VND/tael

Vietinbank Gold

66,350,000 VND/tael

66,970,000 VND/tael

World gold price today

World gold prices fell early this morning, with spot gold falling $9.8 to $1,994.4 an ounce. Gold futures last traded at $2,006.5 an ounce, down $10.7 from early the previous day.

Precious metals reversed losses as US Federal Reserve officials spoke in favor of higher interest rates for longer. Specifically, Raphael Bostic, President of the Atlanta Fed, told CNBC that he would like to see one more rate hike and then keep rates above 5% for a period of time to cool inflation. Meanwhile, James Bullard, President of the St Louis Fed, told Reuters that recession fears are overblown and he supports US interest rates rising to 5.5% to 5.75% - up from the current 4.75% to 5%. The banking turmoil of the past few weeks has subsided in part due to the view that the Fed may be less hawkish due to concerns about banks and the risk of a US recession. The hawkish rhetoric from Fed officials could once again raise the specter of more banking problems along with higher interest rates.

In the long term, experts remain bullish on gold. In a recent report, Imaru Casanova, deputy fund manager, and Joe Foster, fund manager and strategist at VanEck's Gold Fund, said the precious metal's recovery above $2,000 an ounce after last month's banking crisis is a key reason investors should own some gold in their portfolios. They said the precious metal will remain a valuable safe-haven asset through 2023.

Analysts say gold’s volatility over the past month should serve as a wake-up call for those who haven’t yet bought gold. Despite the heightened risk profile in March, gold failed to break its all-time high target. They say the market is not fully pricing in the risks ahead.

The upbeat comments came as gold prices recovered from a sell-off late last week when the market rose to a 13-month high above $2,050 an ounce.

While tensions around the global banking crisis have eased in recent weeks, leading to a short-term correction in gold, fund managers say these risks remain elevated in an environment of persistently rising inflation and slowing economic activity.

They warned investors that the global economy has yet to feel the full impact of the Fed’s aggressive tightening of monetary policy, and they raised the possibility of more cracks in the system.

Casanova and Foster note that the Fed will be forced to pivot its monetary policy quickly as economic conditions worsen. After significant volatility over the past month, markets are now pricing in a 25 basis point rate hike next month before cutting rates later this year.

This is a positive sign for gold, the two experts say. They believe that the market has not yet priced in the negative impact of policy changes in the fight against inflation and the increasing possibility of a hard landing or recession. Gold's appeal increases in these scenarios. So far, investors have not returned to benefit from its role as an inflation hedge, as a safe haven in times of economic, financial and geopolitical volatility, and, importantly, as a portfolio diversifier.

Speaking about gold’s upside potential in the current environment, Casanova and Foster said that retail investors are just starting to pay attention to gold. March was the first month in 10 months that global gold-backed exchange-traded funds saw net inflows.

“The inflows in March certainly signaled improved sentiment in the gold market, but current holdings are well below historical levels. The last time gold was at $1,970 an ounce in April 2022, global exchange-traded fund holdings were 12% higher than they are today,” the analysts said. As of March 31, 2023, COMEX net long positions were around 482 tonnes, according to the World Gold Council, far below the 819 tonnes recorded in April 2022.

With the domestic gold price decreasing slightly and the world gold price listed at Kitco at 1,994.4 USD/ounce (equivalent to nearly 56.9 million VND/tael if converted according to Vietcombank exchange rate, excluding taxes and fees), the difference between domestic and world gold prices is currently about 10 million VND/tael.

TRAN HOAI



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