Deep price drop, Nghe An gold market 'froze'
Gold prices have fallen sharply and fluctuated continuously, but the Nghe An gold market has fallen into a state of "immobility".
On the morning of May 31, the price of SJC gold bars decreased by another VND1.3 million/tael for buying and VND800,000/tael for selling, to VND88 million/tael (selling) and VND84.5 million/tael for buying. Compared to 2 days ago (May 29), the price of gold decreased by VND3.2 million/tael (selling) and VND3.5 million/tael (buying).
The price of gold rings also fluctuated, specifically, as of this morning (May 31), the domestic price of gold rings was trading at 74.68-76.08 million VND/tael (buy - sell). Compared to 2 days ago, the price of gold rings decreased by nearly 1 million VND/tael for buying and decreased by 800,000 VND/tael for selling.
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In Nghe An, a survey of some gold shops on the morning of May 31 showed that most private gold and silver businesses in Vinh city did not list the price of SJC gold bars on the electronic board, only announcing the price when there was a transaction. The price of gold bars at each shop also varied quite clearly, ranging from 500,000 to 700,000 VND/tael.
Accordingly, the price of gold bars given by gold shop staff is 88.5 million VND/tael (sell) and 83.73 million VND/tael (buy). A decrease of 2.7 million VND/tael (sell) and nearly 4.5 million VND/tael (buy) compared to 2 days ago.
The price of gold rings is updated by gold shops on the listing board, specifically, the selling price of gold rings is 77 million VND/tael (selling) and 73.5 million VND/tael (buying). Decreased by 500,000 VND/tael (buying) and 600,000 VND/tael (selling).
Gold prices plummeted freely, falling deeply in both directions, but the Nghe An gold market fell into a state of inactivity. On the morning of May 31, the weather was rainy, and gold shops were sparsely populated. Some shops and gold counters only had employees cleaning and rearranging gold, but no customers coming to trade.
Ms. Van Nhi, owner of a gold and silver shop on Cao Thang Street, said: “The price of gold has dropped sharply in the past two days, but the number of customers coming to trade is very low, both buying and selling have decreased sharply. Only individual customers come to buy wedding gold, gold for gifts and gold jewelry.”
According to the owner of this gold shop, the reason why gold prices have dropped sharply but people are not interested in buying and selling is due to many factors. Firstly, the State Bank announced that it will sell gold bars at a designated price to Agribank, Vietcombank, BIDV, VietinBank for them to distribute to people.
Therefore, those who want to buy gold will wait until June 3, when this plan is implemented, to see how the gold price fluctuates before making a decision.
In addition, a comprehensive inspection to make transactions in the gold market transparent is being implemented; the amendment of Decree 24 related to gold trading management is also being studied by regulators... Therefore, gold investors are waiting for moves to regulate the gold market before making buying and selling decisions.
Besides, since the beginning of May 2024, a series of banks have increased deposit interest rates, some banks have adjusted interest rates 4 times in a row, attracting idle money from people to save.
At the same time, the real estate market, especially land in some suburban areas, has shown signs of recovery. Many people choose to invest in real estate to “catch the wave” when the new cycle begins. Therefore, the cash flow into gold is also more limited.
“According to information from the State Bank, in the near future, there will be 4 banks selling gold directly to people at prices determined based on world prices. I hope that the gold price at that time will not be too different from the world gold price, gold will have a reasonable price. At this time, I will base on the situation and decide to buy gold for investment or choose another option,” said Mr. Dang Minh P., a gold investor.
On the other hand, due to the sharp drop in gold prices, people do not choose this time to sell gold. For long-term investors, the current price is not optimal for profit taking; and for those who have just bought gold, selling at this time will result in heavy losses. Therefore, gold transactions in both buying and selling directions have slowed down.
