Investing based on rumors can lead to bitter consequences.

Rumors about currency exchange caused many people to withdraw money to buy gold and USD. When the Ministry of Public Security arrested the group of people spreading false rumors on social media, public panic and suspicion subsided, and many people learned valuable lessons.

At the time the rumors surfaced in late November, the gold market was in turmoil, with the price difference between domestic and international gold continuously widening. At one point, the domestic gold price was as much as 4.4 million VND/ounce higher than the world price. Experts repeatedly warned investors about the potential risks.

Recently, the US Federal Reserve's (Fed) interest rate hike meeting is considered the main catalyst for the gold market. In the early sessions of this week, the domestic gold market continuously fluctuated up and down, not in proportion to the trend of world prices. Mid-week, after the Fed officially announced an interest rate hike, domestic gold prices only adjusted slightly downward compared to the downward adjustment of world prices. This mismatch in price movements widened the gap between domestic and world gold prices, at times reaching over 5 million VND per ounce.

Looking back at this week's trading sessions, gold prices fluctuated, rising and falling. The highest price recorded was 36.15-36.6 million VND/ounce, while the lowest was 35.58-36.1 million VND/ounce, corresponding to the buying and selling prices. On the afternoon of December 17th, the SJC gold price was listed by Saigon Jewelry Company at 35.7 – 36.3 million VND/ounce (buying price – selling price). Thus, compared to the highest and lowest points of the week, each ounce of gold decreased by approximately 500,000 VND.

Commenting on this development, Dr. Nguyen Tri Hieu, a financial expert, stated that the Fed's interest rate hike had been long awaited by financial investors. And although it had been predicted for a long time, when the Fed decided to raise interest rates, world gold prices were still significantly impacted, typically by a sharp decline. Domestic gold prices also reversed course and fell. Therefore, those who bought gold after rumors of currency exchange in the preceding days may be experiencing some losses.

Clearly, looking at the price of gold, anyone who bought gold when rumors of currency devaluation surfaced would have suffered heavy losses within just three weeks due to the sharp drop in the price of the precious metal. Analysts believe that the Fed's interest rate hikes are causing the US dollar to rise and pushing down world gold prices. In 2017, the Fed is expected to raise interest rates three more times, which will put pressure on gold prices in the short term. Therefore, investing in gold during this period carries high risks.

Gold traders also believe that the unpredictable fluctuations in world prices towards the end of the year, combined with domestic supply and demand, remain a difficult challenge in accurately predicting the trend for the precious metal.

From the perspective of the regulators, the State Bank of Vietnam affirmed that it will continue to strictly manage the gold market to preserve the achievements in combating the "goldization" of the economy that have been attained after a long period of effort. Mr. Nguyen Ngoc Canh, Director of the Foreign Exchange Management Department, affirmed that the State Bank of Vietnam will closely monitor market developments and is ready with various options and sufficient resources to intervene in the gold market when necessary. Intervention to stabilize the gold market will be carried out consistently with the policy of managing the gold market as directed by Government Decree 24/2012/ND-CP.

"The State Bank of Vietnam continues to closely manage the gold bullion market, creating conditions for the healthy development of the gold jewelry and handicraft market, ensuring the legitimate rights of both citizens and businesses," the head of the Foreign Exchange Management Department affirmed.

From the perspective of the public, buying, selling, or making investment decisions based on rumors is a costly lesson. Once again, this proves that transactions yield the best results when based on economic indicators, market developments, and officially announced economic policies from regulatory bodies.

Do Huyen/baotintuc