Buyers lose 3 million VND/tael
In the first week of 2024, the gold market fluctuated violently at the beginning of the week but was quiet at the end of the week. At the end of the week, the price of SJC gold "stabilized" at a common level of 72 million VND/tael - 75 million VND/tael, down more than 5 million VND/tael compared to the "peak" set on December 26, 2023.
Entering the second week of the new year, right after opening hours, the price of SJC gold was simultaneously adjusted down sharply by all "gold shops", from 400,000 VND to 600,000 VND/tael, causing buyers last weekend to suffer heavy losses.
Specifically, the price of SJC gold at Phu Nhuan Jewelry Company - PNJ was adjusted the most, down 500,000 VND/tael for buying, down 600,000 VND/tael for selling to 72 million VND/tael - 74.60 million VND/tael. If buying at the end of the week and selling at the beginning of this week, investors would have lost 3.2 million VND/tael.
Right after the opening hours of the new week, the price of SJC gold dropped by about half a million VND/tael, causing buyers last weekend to lose more than 3 million VND/tael. Illustrative photo
The price of SJC gold at Doji Group and Saigon Jewelry Company – SJC was also listed at: 71.50 million VND/tael – 74.50 million VND/tael, down 500,000 VND/tael in both buying and selling directions. Buyers lost 3.5 million VND/tael after just the weekend.
Bao Tin Minh Chau Gold and Gemstone Company adjusted the price of SJC gold down by VND400,000/tael in both buying and selling directions to VND71.40 million/tael - VND74.40 million/tael.
Meanwhile, the price of non-SJC gold remained unchanged. At Bao Tin Minh Chau, the price of Thang Long Dragon gold was traded at 62.69 million VND/tael - 63.69 million VND/tael. At PNJ Company, the price of PNJ gold was traded at: 62 million VND/tael - 63.10 million VND/tael, unchanged from the end of last week.
It can be seen that currently, the difference between the selling price and the buying price of SJC gold, although adjusted down, is still very high, up to 3 million VND/tael. This is a huge risk for buyers. According to experts, this difference is only about 5 million VND/tael, which is reasonable.
Meanwhile, the difference between the selling and buying prices of non-SJC gold is lower, about 1 million VND/tael.
SJC gold price is 13.5 million VND/tael more expensive than world gold price
SJC gold price fell sharply despite the slight decline in world gold price. At the moment, in the Asian market, the world gold price is trading at 2,043.6 USD/ounce, down about 2.7 USD/ounce. At this level of world gold, the converted SJC gold price is about 61 million VND/tael. Thus, the SJC gold price is about 13.5 million VND/tael more expensive than the world gold price.
It can be seen that gold is going against previous forecasts of experts and investors.
SJC gold price is about 13.5 million VND/tael more expensive than world gold price. Illustrative photo
Kitco News’ latest weekly gold survey shows that exactly half of retail investors are expecting gold prices to rise this week, while two-thirds of market analysts are bullish on the yellow metal’s near-term prospects.
Last week, nine Wall Street analysts took part in the Kitco News Gold Survey, and they remained as bullish as ever. Six, or 66%, predicted gold prices would rise this week, while just one analyst, or 11%, predicted prices would fall. The remaining two, or 22%, were neutral on gold.
Meanwhile, 301 votes were cast in Kitco’s online poll, with market participants more cautious than experts about a change. 149 retail investors, or 50%, expect gold to rise this week. Another 79, or 26%, predict lower prices, while 73 respondents, or 24%, are neutral on the precious metal’s near-term outlook.
The latest survey shows that retail investors expect gold prices to trade around $2,049 an ounce this week.
James Stanley, senior market strategist at Forex.com, sees gold falling this week. “We are at a long-term resistance point and while I don’t doubt that gold can break through it at some point this year, I question when that will happen now with core CPI expected to be at 4,” commented James Stanley.
Adrian Day, president of Adrian Day Asset Management, has turned his short-term view on gold to bullish. “The U.S. jobs report surprised the market, but gold seems to have shrugged it off,” he said. “The Federal Reserve is not going to change course, just maybe move a little slower than the market had previously thought, which was a bit optimistic.”
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