Gold price drops nearly 400,000 VND, widening buying-selling margin

Today, August 6, the State Bank auctioned off an additional 1 ton of gold bars. In the market, businesses reduced the price by nearly 400,000 VND/tael and widened the buying-selling margin to 400,000 VND.

Gold prices drop sharply. Illustrative photo

Opening the market on August 6, Saigon Jewelry Company widened the buying-selling margin to 400,000 VND instead of 300,000 VND as the previous day by reducing only 130,000 VND/tael for selling but lowering 230,000 VND/tael for buying, listing at 37.25 million VND/tael - 37.65 million VND/tael. Then, this company reduced another 150,000 VND, down to 37.10 million VND/tael - 37.50 million VND/tael. Thus, compared to the previous day, the gold price here decreased by 380,000 VND and 280,000 VND/tael each way.

Doji Group adjusted down 300,000 VND and 250,000 VND, listing retail transactions at 37.15 million VND/tael - 37.50 million VND/tael and wholesale transactions at 37.17 million VND/tael - 37.49 million VND/tael. PNJ listed the price at 37.20 million VND/tael - 37.51 million VND/tael.

Thus, the buying and selling margin was simultaneously widened by businesses by sharply lowering the buying price. This is understandable when today the State Bank bid to sell an additional ton of gold through bidding. Businesses widened the margin to avoid risks, and at the same time sharply lowered the buying price as if they wanted the State Bank to set a low floor price.

In the world market, the gold price in the first session of the week moved in the direction of increasing first and decreasing later. The gold price adjusted down due to profit-taking pressure after the strong increase at the end of the week, in addition to positive economic information from the US and EU markets also creating pressure on the price. That is the recovery in the US service sector after adjusting down to the lowest level in 3 years, while businesses in the UK and EU companies showed growth in July, the first month of growth in 18 months. The recovery of the US economy is the premise for concerns about the narrowing of the economic stimulus package in the coming time. The price closed at 1,303.85 USD/ounce, down 8 USD/ounce.

This morning in the Asian market, the price of gold continued to decline. At 9:00 a.m., the current price on the Kitco.com website was 1,299.1 USD/ounce, a decrease of 4.7 USD/ounce.

According to technical analysis, the immediate resistance level of gold is 1,320.3 USD/ounce, followed by 1,325 USD/ounce. The first support level is 1,290 USD/ounce, followed by 1,282.4 USD/ounce.

The gap between domestic and world gold prices remains high, around VND4.4 million per tael.

According to HNMO - TH