The difference between domestic and foreign gold prices has widened to nearly 5 million VND.

The sharp drop in world gold prices while domestic prices have been falling "drop by drop" has caused the price gap between the two markets to widen to 4.9 million VND/tael.

Gold prices go down. Illustration photo

At the end of the trading session on August 6, the spot gold price on the world market decreased by 15 USD/ounce, down to 1,283.6 USD/ounce. The price of gold for December delivery decreased by nearly 20 USD/ounce, down to 1,282.6 USD/ounce; during the session, the price dropped to 1,279.24 USD - the lowest level since July 18. This morning, on the Asian market, the price of this precious metal continued its downward trend. At 9:00 a.m., the current price on the Kitco.com website was 1,276.7 USD/ounce, a decrease of 5.9 USD/ounce.

Gold prices fell sharply because US economic data continued to show positive signs. This will prompt the Fed to cut its economic stimulus package soon - a factor that has supported gold's continuous rise for the past few years. According to the data just released, the US economy grew faster than expected in the quarter. Moreover, the country's labor market is also recovering well.

Since the beginning of the year, gold prices have fallen about 25%, mainly because the Fed said it could cut its economic stimulus package.

In the domestic market, at the opening of today's session, each tael of SJC gold bar was listed by Saigon Jewelry Company at 37.15 million VND - 37.45 million VND (buy - sell), keeping the buying price the same but decreasing the selling price by 100,000 VND compared to the end of the previous day. After that, this company further reduced it to 37.10 million VND - 37.40 million VND.

Doji Group adjusted down 260,000 VND and 160,000 VND, down to 37.20 million VND/tael - 37.40 million VND/tael for retail transactions and 37.21 million VND/tael - 37.39 million VND/tael for wholesale transactions.

Although the domestic gold bar price has been adjusted down following signals from the world market, the decrease is still not as much as the world price, so the difference between the two prices has widened to 4.9 million VND/tael instead of 4.4 million VND/tael the day before.

If you pay close attention, you will see that after June 30, when the State Bank held three consecutive gold auctions, the difference between domestic and international gold prices changed little. However, when the agency moved to postpone the auctions, the price difference immediately widened.

According to HNMO - TH