Despite the world gold price "sinking deep", SJC gold price is still very expensive

SJC gold price is very expensive

In the first days of August, the world gold market continuously "sunk deep" but the domestic SJC gold price still increased.

At 10:30 a.m. on August 9, Bao Tin Minh Chau Jewelry Company listed the price of SJC gold at: 66.80 million VND/tael - 67.33 million VND/tael, an increase of 50,000 VND/tael in both buying and selling prices compared to early this morning.

Previously, during the opening hours, the price of SJC gold decreased by 20,000 VND/tael compared to the end of yesterday. Thus, currently, the price of SJC gold has increased by 70,000 VND/tael.

At other companies, gold prices also increased by less than 100,000 VND/tael. SJC gold prices at Saigon Jewelry Company – SJC and Phu Nhuan Jewelry Company – PNJ were both traded at: 66.75 million VND/tael – 67.35 million VND/tael.

Although the world gold price is "sinking deeply", the price of SJC gold is still very expensive, causing the gap between the two prices to widen. Illustrative photo

Doji Group has the most expensive SJC gold buying price, only 66.60 million VND/tael. Meanwhile, Doji's selling price is listed at 67.35 million VND/tael.

Meanwhile, the price of non-SJC gold surprisingly reversed and decreased quite sharply. At Bao Tin Minh Chau, the price of Thang Long Dragon gold was listed at: 56.21 million VND/tael - 57.06 million VND/tael, down 100,000 VND/tael in both buying and selling directions. At PNJ Company, the price of PNJ gold was bought and sold at: 56.10 million VND/tael - 57.10 million VND/tael.

Compared to the end of July, the price of non-SJC gold tends to go sideways while the price of SJC gold increases slightly. However, the demand for gold in Vietnam is decreasing significantly. One of the reasons why gold is less attractive is that savings interest rates have been increasing rapidly for a long time.

Until interest rates fell, the stock investment channel exploded again. Investors' "cheap" money poured into stocks, causing the trading value of each session to reach billions of dollars. And the money flow into stocks is still "hot", showing no signs of cooling down.

Another big reason why SJC gold price is attractive is the huge difference between SJC gold price and world gold price. In the first days of August, this difference was pushed higher.

SJC gold price is much more expensive than world gold price

In early August, when world gold prices continued to fall, SJC gold prices still increased slightly.

Specifically, last night in the US market, the world gold price dropped sharply, to a very low level, less than 1,930 USD/ounce. By this morning, despite a slight recovery, the world gold price still only reached 1,929.7 USD/ounce.

At the world gold price below 1,930 USD/ounce, the converted SJC gold price is about 55.28 million VND/tael. Thus, the SJC gold price is about 12 million VND/tael more expensive than the world gold price. Recently, this difference was only over 11 million VND/tael.

Gold prices fell to their lowest in nearly a month on Tuesday as investors sought refuge in the dollar following weak Chinese trade data.

“There’s a lot of concern about the global growth outlook and it’s likely to be a lot weaker than people are anticipating and that’s triggered a move into the dollar,” said Edward Moya, senior market analyst for the Americas at OANDA.

The dollar rose 0.5% against its rivals, making gold less attractive to holders of other currencies.

All eyes will be on U.S. consumer price index data due on Thursday. U.S. inflation likely rose slightly in July to an annual rate of 3.3 percent, while the core rate was likely to be unchanged at 4.8 percent, according to a Reuters poll of economists.

“The inflation report is important, but what’s more important is the report that we’re going to get next month and that could indicate that we’re going to see some price volatility in gold going forward,” Moya said.

Fed Governor Michelle Bowman on Monday outlined the need for additional interest rate hikes to bring inflation down to the Federal Reserve's 2% target, while New York Fed President John C. Williams projected rates could start falling next year.

Gold is highly sensitive to rising US interest rates, as these increase the opportunity cost of holding non-yielding bullion.

Reflecting the gold jitters, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell to a five-month low on Monday.

“While central banks saw record demand for gold in the first half of the year, traders and investors in futures and ETFs remain skeptical about the current upside potential,” said Ole Hansen, head of commodity strategy at Saxo Bank.

Source: https://www.congluan.vn/mac-gia-vang-the-gioi-chim-sau-gia-vang-sjc-lai-dat-khet-post259699.html