Bidding
On the morning of April 21, closing the trading session last week, the price of gold continued to increase slightly. Specifically, gold bars were bought by Saigon Jewelry Company - SJC for 82 million VND/tael and sold for 84 million VND/tael. Compared to the end of last week, each tael of SJC gold bar increased by 1.4 million VND in the buying direction and increased by 900,000 VND in the selling direction. The uneven increase mentioned above caused the difference between the buying and selling price of SJC gold bars to decrease to 2 million VND/tael instead of 2.5 million VND as last week.
Similarly, SJC bought 9999 gold rings for VND74.6 million and sold for VND76.7 million, an increase of VND300,000 for buying and VND500,000 for selling. This pushed the difference between the buying and selling prices of SJC gold rings to VND2.1 million/tael instead of only VND1.9 million/tael as at the end of last week.
In Nghe An, for the past 3 consecutive days, many gold shops have not posted gold prices on electronic boards, but only announced prices when customers asked for transactions. At some reputable gold and silver businesses, the listed prices on the morning of April 21 were as follows: SJC gold bars were bought at VND81.7 million/tael and sold at VND84.3 million/tael; plain gold rings were VND73.5 million/tael bought and VND78 million/tael sold.
According to records, in recent days, gold transactions in Nghe An have been quite quiet in both buying and selling directions, especially after the information that the State Bank will organize a gold bar auction tomorrow (April 22). The State's organization of gold bar auctions is said to have two purposes: to supplement the market supply, stabilize the market and cool down the gold price.
At the same time, the gap between domestic gold prices and world gold prices has been narrowed. Many people predicted that the price of gold bars would decrease when the State Bank organized an auction, but in fact, at the end of this week's trading session, the price of gold bars still increased sharply.
Mr. Tran Tu Hai, a long-time gold investor in Vinh city, said: “At this time, I am not selling or buying gold for investment. I am waiting to see the developments after tomorrow's auction. However, I think the price of gold bars will hardly decrease significantly when the State Bank organizes an auction. Therefore, those who are investing in gold bars or hoarding gold bars should not worry about the fluctuating gold prices.”
At gold shops in recent days, people mainly come to consult gold prices or buy a few taels when needed. The number of people buying gold for investment and storage at this time is almost non-existent.
Ms. Trinh Ngoc Anh, an employee of a gold and silver business on Cao Thang Street (Vinh City) said: “Up to now, gold has had its 5th consecutive week of price increase. Although, at one point, the gold price plummeted, it quickly recovered to its high level. Even with the price of SJC gold bars, despite the information that the State Bank is about to auction 16,800 taels of gold to increase supply to the market early next week, the gold price still increased sharply.
Domestic gold prices increased due to the influence of world gold prices. During the week, there was a time when gold prices exceeded 2,400 USD/ounce. And the current gold price is also at the highest level in history. This is a sensitive time for the gold market, so both people and gold and silver businesses are "holding their breath" to monitor gold developments, all transactions seem to have stopped.
On April 22, the State Bank will bid for 16,800 taels of SJC gold bars with a deposit price of VND81.8 million/tael. Many predict that businesses will bid and win at VND82 million/tael. This will not cool down the market immediately because the number of gold auctioned is not large, not to mention the bidding price is close to the market price. If the gold price is to decrease further, the State Bank must organize about 10 auctions with the same amount of gold. Accordingly, the domestic SJC gold price will gradually fall to VND76-77 million/tael. When the difference with the world price is about VND4-5 million/tael, the State Bank will not need to intervene.
Source
Comment (0)