Gold market in turmoil, gold rings overcome "storm" to increase shockingly

Gold rings "survive the storm"

This week, the focus of financial markets has been on the strength of the USD. The “heating up” of the USD has caused precious metals to fluctuate. The price of SJC gold and domestic gold has both decreased.

In the domestic market, at Saigon Jewelry Company - SJC, in the weekend session, SJC gold price was listed at: 73.80 million VND/tael - 76.80 million VND/tael, down 700,000 VND/tael in both buying and selling directions, equivalent to 0.9% compared to the end of last week.

Phu Nhuan Jewelry Company – PNJ adjusted the price of SJC gold down 200,000 VND/tael for buying and down 600,000 VND/tael for selling to 74.30 million VND/tael – 76.90 million VND/tael.

Gold market gold price shock surge picture 1 — Although the gold market is in turmoil, the world gold price and SJC gold price both decrease, the price of gold rings still overcomes the "storm" with a strong increase. Illustrative photo

At Doji Group, SJC gold price is traded at: 74.25 million VND/tael - 76.75 million VND/tael, down 200,000 VND/tael for buying and down 700,000 VND/tael for selling.

SJC gold price at Bao Tin Minh Chau Jewelry Company was traded at: 74.05 million VND/tael - 76.65 million VND/tael, down 70,000 VND/tael for buying, down 250,000 VND/tael for selling.

In the context of SJC gold price decreasing by 700,000 VND/tael after 1 week of trading, round plain gold rings were extremely successful with a strong increase.

At Bao Tin Minh Chau, the price of Thang Long dragon gold (gold bars) and smooth round gold rings - Thang Long dragon gold is listed at: 64.13 million VND/tael - 65.18 million VND/tael, an increase of 710,000 VND/tael for buying (equivalent to 1.12%) and an increase of 660,000 VND/tael for selling (equivalent to 1.02%).

At PNJ Company, PNJ gold price is traded at: 62.60 million VND/tael - 63.85 million VND/tael, an increase of 200,000 VND/tael for buying and an increase of 350,000 VND/tael for selling.

It can be seen that plain round gold rings are receiving great attention from investors. One of the main reasons is that the price of non-SJC gold is much lower than that of SJC gold. This difference at Bao Tin Minh Chau is 11.47 million VND/tael, at PNJ Company is 13.05 million VND/tael.

Although the price of gold rings increased sharply during the week, it still caused investors to suffer losses. The loss for Thang Long Dragon Gold was VND390,000/tael, and for PNJ Gold it was VND900,000/tael.

World gold price drops

World gold prices were steady in the final trading session of this week but still recorded a second weekly decline in three weeks as comments from US Federal Reserve (Fed) policymakers during the week reduced expectations of an early interest rate cut.

Spot gold rose nearly 0.3% to $2,027.98 an ounce on Friday but was down 1% for the week. U.S. gold futures rose about 0.5% to $2,030.60.

The dollar index fell 0.87% but was up nearly 1% for the week. A stronger dollar makes gold more expensive for holders of foreign currencies.

Markets have been speculating over the timing of a Fed rate cut this week, which has helped gold rebound after a string of declines. Gold is still down for the week, said Bart Melek, head of commodity strategy at TD Securities.

Chicago Fed President Austan Goolsbee said Friday that the Fed needs more inflation data before making any rate cut decisions. Atlanta Fed President Raphael Bostic said Thursday that the timing for rate cuts would be in the third quarter.

Based on 30-day interest rate futures prices, traders now see about a 53% chance of a rate cut in March, down from 71% last week, according to CME's Fed Watch Tool.

“The long-term price outlook is positive for gold,” said independent analyst Ross Norman, adding that gains will be delayed as the market tries to process the possibility of a U.S. interest rate cut and the likely trajectory of the dollar and gold. Lower interest rates reduce the opportunity cost of holding bullion.

On the physical front, gold buying in India was lackluster this week as domestic price correction failed to attract consumers.

Spot silver fell 0.7% to $22.58 an ounce but was down about 2.7% for the week. Spot platinum fell 1.1% to $897.67 and palladium rose 0.8% to $945.78.

Source