Prices continuously 'dance', gold market in Nghe An stagnates

Opening the trading session this morning, February 12, on the international market, the gold price plummeted after a sharp increase. According to statistics, within just 1 week, gold increased by 170 USD/ounce. The peak was at noon on February 11, the world gold price broke out sharply and reached a historical high, above the threshold of 2,940 USD/ounce (equivalent to 91 million VND/tael).

By this morning, the world gold price had turned around and plummeted, falling sharply by 40 USD/ounce compared to its historical peak amid soaring profit-taking pressure. Accordingly, according to the conversion, the world gold price is currently at 90.2 million VND/tael, including taxes and fees.

In line with the developments in the world gold market, the price of gold of domestic brands has been adjusted down. Currently, the price of gold bars of brands is buying at 88 million VND/tael and selling at 90.45 million VND/tael.

In Nghe An, if on the morning of February 11, the gold price was at 88 - 91.5 million VND/tael (buy - sell), then by the early afternoon of February 11, the gold price jumped to 92 - 92.5 million VND/tael (sell), while the buying price increased slightly to 88.2 - 88.5 million VND/tael.

However, by the evening of February 11, the gold price turned around and dropped sharply, the listed prices of gold and silver businesses simultaneously adjusted down, specifically, the selling price of 9999 gold rings was 90.1 - 90.5 million VND/tael, buying price was 87.50 - 88 million VND/tael. That price remained the same in the morning trading session of February 12. Thus, in just 1 day, the gold price "freely fell" losing 2 million VND/tael.

Faced with such unpredictable fluctuations, the gold market in Nghe An has been quite quiet in both buying and selling directions. Ms. Ho Loan, in charge of the gold counter of a gold shop on Cao Thang Street (Vinh City) said: "The world gold price has dropped sharply due to the pressure of selling to take profits. However, when the gold price fluctuates continuously, the buying and selling atmosphere at our shop is very quiet. Like yesterday, the number of customers coming to the shop was large but they only consulted the prices, very few customers transacted. Only a few individual customers bought wedding rings, rings, bracelets as wedding gifts in small quantities."

According to gold shop owners, the reason why the Nghe An gold market is quiet is due to many factors. Firstly, having just passed the God of Wealth Day, people who have the habit and need to buy gold for luck at the beginning of the year all bought on the 10th of January; secondly, at this time, although the gold price has decreased, it is still at a high level (90.5 million VND/tael), so buyers still do not dare to "jump to the top" when the gold price is unpredictable.

Meanwhile, the gold buying price has barely increased, only slightly increasing, and the difference between buying and selling is high (over 3 million VND/tael), so people are hesitant to take profits.

Besides, some other investment fields such as real estate, stocks... are also choices for many people to shelter their money, so gold is not the only choice.

Mr. Hoang Van Nghia (Vinh City), a gold investor, said: “In February 2024, I bought 10 taels of gold bars at 78.5 million VND/tael. Now, if I sell it at 88 million VND/tael, I will make a profit of nearly 100 million VND after 1 year of investment. That profit is quite good. However, due to the high difference between buying and selling; moreover, according to forecasts, the gold price this year will reach a new peak, so I am not in a hurry to sell.”

Although the price of gold has fallen sharply, experts predict that the price of gold will soon increase sharply due to the tariff policies of US President Donald Trump. On Kitco, Tobina Kahn, President of House of Kahn Estate Jewelers, said that the spot price of gold will soon reach 3,000 USD/ounce in the current world context, and many people have even thought of the price of 4,000-6,000 USD/ounce. Citigroup predicts that the price of gold will reach 3,000 USD next month.

Therefore, at this time, buyers still do not dare to spend money because the gold price is high, the gap between buying and selling is large; while sellers are still waiting for gold to increase again, waiting for the time when gold sets a new record to sell for profit. Currently, the gold market in Nghe An is quiet in both buying and selling directions.