Gold buyers lost nearly 1 million VND/tael overnight

Loss of nearly 1 million VND/tael

October 12 was a memorable session for the domestic gold market when the price of SJC gold increased sharply, increasing by about 500,000 VND/tael, surpassing the 70 million VND/tael mark and setting a record for 2023. At some stores, the selling price reached 70.35 million VND/tael.

However, on October 13, although the world gold price remained unchanged, the SJC gold price suddenly dropped sharply, causing those who bought gold yesterday to lose nearly 1 million VND/tael.

Specifically, from the early morning of October 13, Doji Group adjusted the price of SJC gold down by about VND150,000/tael to VND69.35 million/tael - VND70.20 million/tael. The VND70 million/tael mark is still maintained for selling.

Gold buyer loses nearly 1 million dong after 1 night photo 1 — After just one night, gold buyers lost nearly 1 million VND/tael when the price of SJC gold suddenly dropped sharply. Illustrative photo

Bao Tin Minh Chau Gold and Gemstone Company adjusted the price of SJC gold down by 180,000 VND/tael compared to the end of yesterday. The price of SJC gold is currently being traded at: 69.42 million VND/tael - 70.15 million VND/tael.

At Saigon Jewelry Company - SJC and Phu Nhuan Jewelry Company - PNJ, SJC gold price has a stronger decline rate when it decreased by 250,000 VND/tael to only 69.40 million VND/tael - 70.10 million VND/tael.

It can be seen that the price of SJC gold has decreased from 150,000 VND/tael to 250,000 VND/tael. In addition, the difference between buying and selling prices is up to 800,000 VND/tael - 900,000 VND/tael, after just one night, gold buyers have lost about 1 million VND/tael.

Meanwhile, the price of non-SJC gold decreased at a slower rate. At Bao Tin Minh Chau, the price of Thang Long Dragon gold decreased by more than VND100,000/tael to VND56.68 million/tael - VND57.58 million/tael. PNJ Company listed the price of PNJ gold at: VND56.60 million/tael - VND57.60 million/tael.

Gold prices recover after correction

SJC gold price fell sharply in the context of world gold price regaining momentum after a slight adjustment.

Specifically, last night, in the US market, gold prices fell as dollar interest rates and treasury bonds rose after US consumer prices rose more than expected in September and raised concerns that the US Federal Reserve (FED) could keep interest rates higher for a while.

Spot gold fell 0.3% to $1,868.59 an ounce, after hitting its highest since Sept. 27 earlier in the session. U.S. gold futures settled 0.2% lower at $1,883.

The Labor Department said its consumer price index rose 0.4% last month after rising 0.3% in August. However, year-over-year consumer prices have fallen from a peak of 9.1% in June 2022.

“A lukewarm CPI reading could be enough to slow gold’s strong rally into consolidation but it won’t trigger a serious sell-off in itself, especially amid heightened geopolitical tensions,” said Tai Wong, an independent metals trader based in New York.

Traders now see a 38% chance of a Fed rate hike in December, compared with about a 28% chance seen before the report, according to the CME Fedwatch tool. The benchmark 10-year U.S. Treasury yield and the dollar index rose following the data.

Supporting safe-haven gold, the escalating conflict between Israel and the Palestinian Islamist militant group Hamas has kept investors on the sidelines.

Gold is used as a safe investment in times of political and financial uncertainty, but higher interest rates increase the opportunity cost of holding non-yielding bullion.

“There are still some signs of a slowing US economy, which will be positive for gold. I expect prices to trade in the $1,860-$1,920 range in the near term,” said Edward Moya, senior market analyst at OANDA.

Meanwhile, spot silver fell 1.2% to $21.79 an ounce, platinum fell 2.2% to $865.87, while palladium fell 2.9% to $1,132.75.

By the morning trading session of October 13, in the Asian market, gold prices recovered simultaneously. Currently, gold prices are trading at 1,873.1 USD/ounce, up 4.6 USD/ounce.

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