Gold price increases sharply, Nghe An people trade cautiously

At the end of the week, March 30, the price of SJC gold bars was maintained at a peak of around 98.4 million VND/tael for buying and 100.7 million VND/tael for selling by SJC, DOJI, and PNJ businesses, an increase of 3.3 million VND/tael compared to the end of last week.

Similarly, the price of 99.99 gold rings and jewelry gold of all kinds also remained high, up to 98.2 million VND/tael for buying and 100.4 million VND/tael for selling - an increase of 3.4 million VND/tael compared to the end of last week.

In Nghe An, at the end of the last trading session of March, the price of gold rings was listed by private gold and silver businesses at 97 - 97.50 million VND/tael (buy) and 100.8 - 101.5 million VND/tael (sell). This price is also not consistent among businesses. Specifically, the price of 9999 gold at Kim Thanh Huy is 97 - 101.5 million VND/tael (buy - sell); and at Nhu Trinh gold shop (Yen Thanh) it is 96.70 - 100.2 million VND/tael (buy - sell); Ngoc Huong (Thanh Chuong) is 96.80 - 100.3 million VND/tael (buy - sell).

At the end of March, the price of gold rings in Nghe An increased by 10.5 million VND/tael, bringing the total increase in the first 3 months of the year to 16.5 million VND/tael. Thus, in just the first 3 months of the year, the price of 9999 gold rings increased by half the increase in 2024.

Gold prices have been increasing continuously, with some periods of crazy increases causing the gold market to fluctuate continuously. If in early March, when gold increased to 92 - 95 million VND/tael (buy - sell), people rushed to sell to take profits, then immediately after that, gold skyrocketed to 100 million VND/tael. At this time, many people with idle money wanted to buy gold but were afraid of risks, so they waited for the gold price to "cool down" to buy.

Therefore, when gold dropped to 97.5 million VND/tael, the selling price at gold shops was very active. This price only "stuck" for 3 days, then continuously increased, reaching 100 million VND/tael and is currently reaching a new level of 101 million VND/tael.

Although buying when the gold price cooled down, after 1 week, the gold price increased vertically, gold buyers still could not make a profit, even still lost if selling at this time. Mr. Trinh Xuan B. (residing in Ben Thuy, Vinh City) said: "I bought gold on March 23, when the price dropped to 97.8 million VND/tael, then gold continuously increased sharply. After 1 week, the gold price has now reached a new peak, up to 101.50 million VND/tael, but the gold price at the store is only 97 million VND/tael, the difference between buying and selling prices is too high, causing buyers to still lose, like me, losing up to 800 thousand VND/tael".

Although gold is still an attractive investment channel and a safe haven in the current context, the number of people who want to buy gold is quite large, but most people do not dare to buy at the peak at this time, when the price of gold is increasing crazily. "Buying gold at this time is quite risky. If you invest long-term, you do not know what the future of gold will be; and if you invest short-term, the difference between buying and selling is too high, so buyers are sure to lose money if they buy at the peak," said Ms. Tran Hong Lam, a resident.

As a result, the gold market in Nghe An has fallen into a "frozen" state. Mr. Hoang Manh Tin, in charge of the gold counter on Cao Thang Street, said: "Unlike in big cities, when the gold price skyrockets, people rush to buy gold, wait in line and the shop sells out slowly, but in Nghe An, when the gold price increases without stopping, the market is quiet. People who want to sell have not sold at this time because they think the gold price will increase sharply; and buyers do not dare to buy at this time because they are afraid that if they rush to the top when the gold price increases sharply, they will be at risk."

Despite the hot increase in gold prices, both analysts and investors predict that the precious metal will continue to increase strongly in the short term, even in April. Specifically, the next target is the highest level of the week, 3,042 USD/ounce, followed by 3,050 USD. The strong resistance level is 3,100 USD/ounce.

On the other hand, some experts still warn that gold prices have increased too much and the risk of a downward reversal is very high./.