Gold price jumps to record level, trading market in Nghe An remains quiet

Today (July 22), gold price reached its peak, the highest ever, surpassing 52 million VND/tael. Photo: Thanh Phuc

The listed prices at major gold shops on Cao Thang Street (Vinh City) on the morning of July 22 were VND 5,280,000/tael (sell) and VND 5,170,000/tael (buy) for SJC gold bars and VND 5,250,000/tael (sell) and VND 5,090,000/tael (buy) for round rings, the highest ever, an increase of nearly VND 800,000/tael compared to the previous trading session.

It is worth mentioning that, while in the past, when gold prices increased sharply, people rushed to sell to make a profit, causing the market to be bustling, now customers are not very interested in the record increase in gold prices. The proof is that the number of customers coming to trade at gold shops is quite sparse.

Ms. M. Anh - owner of a large gold shop on Cao Thang Street said: "The price of gold has increased continuously in the first two days of the week and today it has reached its peak, but the number of customers coming to trade has decreased significantly in both buying and selling directions. The amount of gold bought and sold has decreased by about 50% compared to the time when the price of gold reached 49 million VND/tael at the end of June."

The domestic gold price opened this morning, July 22, and increased sharply from 710,000 to 950,000 VND/tael. Meanwhile, the world gold price last night also skyrocketed by nearly 24 USD/ounce. Since the beginning of the year, the gold price has increased by 21%; compared to the beginning of 2019, the gold price has increased by about 43.5%.

Since the Covid pandemic and political upheavals in the world, gold prices have been continuously increasing. According to the explanation of gold shop owners, the reason why the gold market is quiet despite the unprecedented high price is because before, seeing the high price, many people brought gold to sell to make a profit, so now there are very few people who have gold to sell or if there is, they are holding gold waiting for the price to rise. Meanwhile, the high and fluctuating gold price makes people not dare to risk investing, only a few come to buy gold as wedding gifts.

Gold prices hit a record high, but the gold market in Nghe An was quite quiet, with both buying and selling prices decreasing. On the morning of July 22, very few people came to trade at gold shops in Vinh city. Photo: Thanh Phuc

According to financial experts, the gold market currently has many supporting factors, including the uncertain outlook of many major economies in the world due to the ongoing Covid-19 pandemic; the US-China trade war, geopolitical tensions in many regions and the money pumping policies of countries...

Many forecasts say that the world gold price will soon reach a new peak, surpassing the threshold of 1,900 USD/ounce in 2011 and is likely to reach 2,000/ounce within the next few months due to the super-loose monetary policies of many countries. If this trend continues, the domestic gold price is likely to reach a record of 55 million VND/tael. However, according to recommendations, people should not risk investing in gold at this time because it will contain many risks when the gold price reverses and goes down...