Gold prices drop across the board, Nghe An people increase purchases

At the end of the trading session of the week, the world gold price stood at 2,386 USD/ounce, down 14 USD/ounce compared to the closing session of the previous week.

Last week, the domestic price of SJC gold bars and gold rings were both adjusted down. SJC gold bars are being sold by Agribank, BIDV, Vietcombank and VietinBank at 79.5 million VND/tael. Gold and gemstone companies also maintain the selling price of gold bars at this level. Compared to the end of last week, the price of gold bars decreased by about 500,000 VND/tael.

The price of gold rings recorded the first slight decrease after many weeks of price increases in the context that the State Bank in conjunction with the police are actively inspecting and examining gold trading establishments and seizing many gold rings and jewelry.

Adjusting to the domestic and world gold market, the price of gold rings in Nghe An decreased by 150,000 - 200,000 VND/tael in both buying and selling directions. Specifically, on the morning of July 28, gold and silver businesses in Nghe An listed the price of gold rings as follows: 77.30 - 77.70 million VND/tael (selling) and 74.50 - 75.50 million VND/tael (buying).

Meanwhile, the price of gold bars in Nghe An has not been updated by gold and silver businesses, there are no products for sale and there is no demand to buy. Therefore, when people have demand, they all turn to buying gold rings.

Ms. Trinh Ngoc Anh, an employee of a gold shop on Cao Thang Street, said: “The price of gold rings has decreased slightly, closely following the world gold price and is more stable than gold bars. Currently, in Nghe An, gold rings are mainly traded. The price of gold rings has decreased slightly, and many people have bought gold rings. Last week, the amount of gold rings sold increased by about 10% compared to the previous week. In terms of buying, because people sold less, the gold shops in our system also bought less.”

With money sent back from her three children working abroad, every quarter, Ms. Nguyen Thi N. in Dong Van commune (Thanh Chuong) goes to Vinh city to buy gold to store as capital for her children.

By monitoring the gold price, Ms. N. noticed that the price of gold rings often fluctuates in the same direction as the world market. Therefore, before deciding to spend money to buy gold, she often consults the world market and the opinions of experts.

Ms. N. said: “On average, each quarter, my three children send home about 500-600 million VND. I use this money to buy gold for storage. Before, I bought gold bars for easy storage, and it is a national brand so I don’t have to worry about quality.

Since the price of gold bars fluctuated, buying and selling has tightened, in Thanh Chuong district or Vinh city, transactions are also limited, so I switched to buying gold rings. This time, the price of gold rings has decreased, while according to experts' forecasts, the price of gold will increase soon, so I decided to use all the money my child sent home to buy 7 taels of gold rings.

Not only people with large amounts of idle money invest in gold, but many people today also choose to buy gold rings to accumulate assets. The amount of purchase is not much, only 1-2 taels, but they consider it the safest investment channel.

“With a civil servant salary and a surplus of 5-7 million VND per month, buying 1 tael of gold to store is the most appropriate. Before, I would contribute to the savings association, and when it was my turn to receive it, I would buy 1 tael. Now, the savings association is also risky, and the price of gold bars is constantly fluctuating, so every month when I have surplus money, I save up to buy 1 tael of gold,” said Ms. Luu Thi Hong Phuong in Vinh Tan ward (Vinh city).

According to the latest Kitco News weekly gold survey, experts remain bullish on gold prices. Specifically, of the 16 analysts who participated in the Kitco News gold survey, 7 experts, or 44%, expect gold prices to rise next week, while only 4 people, or 25%, predict prices will fall; the remaining 5 analysts, or 31%, predict gold prices will be flat next week.

Meanwhile, 193 votes were cast in Kitco’s online poll, with Main Street investors more bullish than last week. 127 retail traders, or 66%, expect gold prices to rise next week. Another 37, or 19%, expect the yellow metal to trade lower, while 29 respondents, or the remaining 15%, see prices moving sideways next week.

The price of gold rings often fluctuates in the same direction as the world market. It is predicted that the increase in gold prices in the coming time will lead to the excitement of the gold ring market.