Gold prices fall - purchasing power remains weak.

(Baonghean.vn) - In recent days, the domestic gold market has experienced a week of strong fluctuations, with prices continuously falling. According to our reporter's observations, despite the sharp price drop, buying demand remains weak.

Mr. Nguyen Long Hung, Director of Agribank's North Central branch gold trading company, said that for nearly a month, the gold market has been continuously plummeting in price. On average, the price has dropped several times a day, notably 26 times on July 17th and 19 times on the 16th. However, because of the downward trend in gold prices, there are no significant fluctuations, making it unattractive to speculators. There are fewer sellers and more buyers.

In June, the branch bought 700 taels of gold and sold 550 taels. However, in July, the price of gold dropped sharply, resulting in fewer customers selling and more buying. Consequently, the branch bought less gold and sold more. Specifically, it bought 510 taels and sold 750 taels.

Transactions at the Agribank Gold Center, North Central Branch.

At the North Central Gold Branch at 9:00 AM on July 29th, the number of customers was sparse. The electronic price board showed: the international gold price was 1,095.74 USD/Oz. Retail prices at the branch: Round gold rings and 3A gold bars were bought at 30.25 million VND/ounce and sold at 31.4 million VND/ounce; SJC gold bars were bought at 32.89 million VND/ounce and sold at 33.19 million VND/ounce. In the afternoon, domestic and international gold prices remained unchanged.

The price difference between domestic and international gold remains high (nearly 4 million VND/ounce), and this is one of the reasons why buyers are hesitant, even though gold prices have fallen.

At private gold shops like Kim Thanh Huy and Phu Nguyen, there weren't many customers making transactions. Due to sharp price fluctuations, businesses have simultaneously widened their buy-sell margins considerably to mitigate risks.Mr. Tran Van Than, owner of Kim Thanh Huy gold business, said: Gold is falling but lacks significant momentum.Due to weak buying demand, the amount of gold sold is minimal. Customers are mainly inquiring about purchasing high-end 75% gold jewelry (from Italy and Korea).

According to our investigation, although gold prices have fallen sharply and continuously "evaporated," they lack appeal to investors, and people are not keen on buying gold because, even though domestic prices are low, the difference compared to world gold prices remains very high, reaching nearly 4 million VND per ounce.

As you can see, investing in gold is very risky. The price of the precious metal can rise sharply but can also fall quickly, and vice versa. Therefore, people are being cautious when participating in this market.

Thu Huyen