Gold buyers lost more than 2 million VND after one week
Affected by world prices, domestic gold bar prices dropped below VND55 million/tael, causing gold buyers this week to suffer large losses.
The world gold market last night (Vietnam time) continued to witness a sell-off by investors, causing the price to fall below the $1,790/ounce range.
Closing session this week,gold priceOn the New York Stock Exchange, it closed at $1,787.7/ounce, down $20.4 from the previous session. Compared to the end of last week, the price of precious metals here is now $85/ounce lower, equivalent to a decrease of nearly 4.5% in a week.
Similarly, the spot gold price on the Kitco floor last night continued to fall sharply, also closing the week at $1,787.7/ounce. Compared to the end of last week, the spot gold price here is now 4% lower in market price. On the Comex floor, the price of gold futures for December delivery last night decreased by nearly 1.3% in value, last trading at $1,782.7/ounce.
Buying domestic gold loses 2.2 million VND/week
The sharp drop in world precious metal prices has also caused domestic gold bars to continuously decrease this week. Currently, the price of gold bars has decreased for the 6th consecutive session and is commonly sold at 54.5 million VND/tael.
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Also this morning, the selling price of SJC gold at stores in Hanoi decreased to 54.57 million VND/tael, this is the 6th consecutive decrease of SJC gold bars. During this whole week (November 23-28), the gold price only maintained a downward trend.
The sharp decline in precious metals in both the world and domestic markets is causing the price of this commodity to fall to a 4-month low.Gold falls for third consecutive week
Closing at a low price range has caused domestic and world gold prices to have a third consecutive week of decline. This week, world gold prices started with many expectations as they still maintained the important mark from the end of last week.
However, positive news related to Covid-19 vaccines and strong stock market growth have put pressure on the precious metal. In particular, data shows that investors withdrawing money from the gold market to pour into stocks is the main reason for the sharp price drop.
Gold's drop below $1,790 an ounce last night also marked the third decline in the commodity in the past week.
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| Gold buyers this week are suffering a loss of more than 2 million VND/tael. Photo: Chi Hung. |
According to Alain Corbani, portfolio manager at Finance SA, gold has broken through key support levels this week (1,850 USD, 1,800 USD) but there is not much negative left. He predicts that gold prices will rise back to the 2,500 USD/ounce mark from the current price range.
“The next leg of the bull cycle will be based on a lower US dollar and that is the key factor to push gold higher from here,” said Corbani.
Some other experts say the macro environment is still supportive for gold to rise, but expectations of record high prices have been delayed until next year.
“Gold prices are not rising because of the pandemic, but because of the policy response to the pandemic. Economic stimulus packages, a weak US dollar, low interest rates are the reasons why gold has risen to record levels. These reasons will not go away and gold will rise strongly next year,” said Kevin Grady, president of Phoenix Futures & Options LLC.
However, Mr. Grady does not expect gold to reach $2,000/ounce by the end of this year, but the precious metal will close this year below $1,900/ounce.
