SJC gold "crazy price"

Last week, the world gold price continuously decreased and recorded the worst week in 2 months. However, the gold price still maintained the important mark of 1,900 USD/ounce. However, despite the pessimism of the world gold price, the price of SJC gold still increased slightly.

This week, the paradox became stronger. While the world gold price continued to fall sharply and broke the important mark of 1,900 USD/ounce, the price of SJC gold increased quite strongly and headed towards the very high mark of 68 million VND/tael. SJC gold is "crazy".

SJC gold price 1 — SJC gold "crazy" price when it still increases despite the sharp decrease in world gold price. Illustrative photo

World gold price continuously "hits bottom"

Gold was little changed on Friday, but bullion was set for a third straight weekly decline as recent upbeat U.S. economic data raised the possibility that interest rates will stay higher for longer.

Spot gold was steady at $1,887.79 an ounce, down 1.4% for the week so far. U.S. gold futures were up 0.1% at $1,916.50.

“Gold has a problem competing with instruments that yield 4-5%, like bonds, while gold offers no yield by comparison,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

“It doesn't seem like an ideal asset class in the current environment,” commented Phillip Streible.

“Gold may continue to struggle to attract demand from investors until something happens, either through a credit event, a weaker dollar or a belief that the Federal Open Market Committee (FOMC) has shifted its focus to rate cuts,” commented Ole Hansen, head of commodity strategy at Saxo Bank.

Traders expect the US Federal Reserve (FED) to keep interest rates in the range of 5.25% - 5.5% until 2024, according to CME's Fedwatch tool, while awaiting guidance from the Jackson Hole summit next week.

Premiums for physical gold in China rose to their highest since December 2016 this week as economic concerns fueled renewed safe-haven demand.

“We still expect deflation and rising unemployment to lead to policy easing, which will support gold,” strategists at Macquarie said, adding that there was significant support around the $1,840/ounce level for gold.

SJC gold "crazy price"

While pessimism pervades the world gold market, domestically, SJC gold is "crazy" in price. After 1 week of trading, the world gold price decreased by about 1.4% while the SJC gold price increased by about 0.4%.

Currently, Bao Tin Minh Chau Jewelry Company is listing the price of SJC gold at: 67.10 million VND/tael - 67.70 million VND/tael, up 250,000 VND/tael, equivalent to 0.4% in the buying price, up 220,000 VND/tael, equivalent to 0.33% compared to the end of last week.

SJC gold prices at Phu Nhuan Jewelry Company - PNJ and Saigon Jewelry Company - SCJ closed the week at: 67.05 million VND/tael - 67.65 million VND/tael and 67 million VND/tael - 67.70 million VND/tael, respectively.

At Doji Group, SJC gold has the highest selling price (67.75 million VND/tael) but the lowest buying price (66.95 million VND/tael). The difference between buying and selling prices at Doji is up to 800,000 VND/tael.

The difference between the two markets makes SJC gold much more expensive than world gold. Currently, SJC gold is more than 13 million VND/tael more expensive than world gold. This figure in 2023 is commonly around 11 million VND/tael.

Meanwhile, non-SJC gold prices moved in line with world gold prices, decreasing slightly.

At PNJ company, PNJ gold price is trading at: 55.90 million VND/tael - 56.90 million VND/tael, down 100,000 VND/tael in both buying and selling directions compared to the end of last week.

At Bao Tinh Minh Chau, the price of Thang Long dragon gold closed the week at: 56.13 million VND/tael - 56.98 million VND/tael.

After 1 week of trading, Thang Long Dragon gold caused buyers to lose 830,000 VND/tael. The loss for PNJ gold was 1.1 million VND/tael.

Notably, the price of SJC gold increased significantly but this metal continued to cause losses for investors. If bought last weekend and sold this weekend, SJC gold buyers would lose about 400,000 VND/tael.

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