No 'dump' in Nghe An market as gold price 'plummets'
Opening the new trading session of the week, today (November 11), the world gold price continued to slide, the domestic gold price "plummeted"... In the face of strong fluctuations, the gold market in Nghe An was quite quiet, there was no situation of people rushing to "dump" gold...
On the morning of November 11, on the world market, the spot gold price is currently at 2,672 USD/ounce, 11 USD lower than the closing price on November 8. Converted according to the current exchange rate at Vietcombank, the world gold price is about 81.9 million VND/tael (excluding taxes and fees).
In the domestic market, the price of SJC gold bars is listed at 81.9 million VND/tael for buying and 85.4 million VND/tael for selling, down 100,000 VND/tael for buying and 400,000 VND/tael for selling compared to the end of last week. The price of domestic gold rings is currently trading around 83 - 85 million VND/tael (buying - selling).
In Nghe An, the price of SJC gold bars has not been publicly listed yet, while the price of 9999 gold rings is listed at 81-82.4 million VND/tael (buy) and 84.50-85.20 million VND/tael (sell), depending on the business. This is the first time since the beginning of the year that the price of gold has dropped so sharply. At the same time, this is also the first time since the State Bank intervened in the market that the price of gold has fallen without brakes.
What is noteworthy is that the difference between buying and selling prices has doubled compared to before. Accordingly, the difference between buying and selling prices is up to 4-5 million VND/tael.
If in big cities, in recent days, when gold prices plummeted, people rushed to sell gold, in Nghe An, the market was quite quiet.
Ms. Nguyen Thi My Linh, an employee at a gold shop on Tran Phu Street (Vinh City) said: "For nearly a week now, the number of customers in both buying and selling has decreased. In buying, customers are mainly those who bought gold when the price was at 65-70 million VND/tael. Now, taking advantage of "taking profit" before the gold price drops deeply will affect the profit margin. There are no cases of selling gold at a "loss" like in big cities."
As analyzed in other articles, in Nghe An, there are very few gold investors, mainly people buying assets. Gold is considered a type of asset for protection, only sold when there is a real need for cash. Therefore, if there is no real need for money, people will not rush to sell. Therefore, the situation of people "dumping" gold is almost non-existent.
On the selling side, it is the peak wedding season so gold shops are quite busy. They mainly sell retail gold jewelry and wedding rings, very few people buy gold to store and invest at this time.
“Although the price of gold has dropped sharply compared to the previous month, the difference between the selling and buying prices is quite high, so even though I have a need, I have not spent any money at this time. I plan to buy about 5 taels of gold to store, but I just went to check the price and wait for the gold price to drop further before buying,” said Ms. Phan Kim Lien, a resident.
According to gold experts, people should stay calm at this time, if not really necessary, wait for the price to recover and then sell gold. For those who want to buy gold, the expert noted that they can consider buying now or wait 1-2 weeks for a better price.
According to the assessment, US interest rates are entering a downward cycle. The US Federal Reserve (Fed) has reduced interest rates twice, once in September and on November 7. There are expected to be more reductions, interest rates from the current level of nearly 5% may fall to below 3%/year in 2026. At that time, the USD may decrease in value, pushing gold up.
Not to mention that world inflation may enter a new record-breaking cycle as countries compete to lower interest rates and pump money to revive the economy, and inflation has not yet reached the expected level. A series of forecasts from reputable organizations still believe that gold prices will increase in the medium and long term, possibly reaching 3,000 USD/ounce in 2025.
Therefore, people should not buy and sell gold according to trends, following the crowd mentality will face the risk of loss.
“Remember, gold always increases in price over time. Today’s drop in gold price is only temporary, maybe next month or after Tet the price will increase. People should avoid buying and selling gold following trends,” economic expert Tran Duy Phuong emphasized.
On the morning of November 11, at the question-and-answer session at the National Assembly meeting, State Bank Governor Nguyen Thi Hong said that, regarding solutions to manage the gold market, in the coming time, they will consider intervening in the gold market (if necessary) with appropriate volume and frequency to stabilize the market and monetary policy goals.
At the same time, coordinate with relevant ministries and branches to carry out inspection and examination of the activities of gold trading enterprises, stores, gold bar distribution and trading agents and other entities participating in the market. Timely detect loopholes and shortcomings to proactively, actively and effectively handle them according to authority and report to competent authorities for appropriate and proper handling measures in accordance with regulations for issues beyond authority.
Conduct a full review of the implementation of Decree 24/2012/ND-CP, propose amendments and supplements in accordance with the practical situation, contribute to preventing the goldification of the economy, not letting gold price fluctuations affect exchange rates, inflation and macroeconomic stability...
