Gold price increased far beyond the 38 million VND/tael mark

On the morning of August 16, domestic gold prices increased sharply and exceeded the 38 million VND/tael mark. The buying-selling margin was widened to 400,000 VND.

Gold price increased by more than 200,000 VND per tael. Illustrative photo

At the market opening, each tael of SJC gold bar was listed by Saigon Jewelry Company at 37.75 million VND - 38.15 million VND (buy-sell), up 120,000 VND and 220,000 VND respectively compared to the closing price yesterday. After that, the price was raised to 37.80 million VND - 38.20 million VND but quickly returned to the level at the market opening. In addition to the price increase, this company widened the buying-selling margin to 400,000 VND instead of 300,000 VND the day before.

In line with the market trend, Doji Group also listed prices far exceeding the 38 million VND/tael mark, with retail gold bars trading at 37.80 million VND/tael - 38.16 million VND/tael and wholesale at 37.81 million VND/tael - 38.15 million VND/tael. These levels are 30,000 VND and 230,000 VND/tael more expensive than the previous day. The buying and selling margin here is more than 2 times wider than on August 15, at 360,000 VND.

The reason why domestic gold trading enterprises widened the buying and selling margin was to avoid risks because the world gold price fluctuated strongly last night and this morning the State Bank is organizing an auction to sell 26,000 taels of gold.

Although the domestic gold price has increased sharply, it is still “insignificant” compared to the increase in world prices. Therefore, the price difference between the two markets has reached 3.3 million VND/tael. The previous day, this difference was 3.7 million VND/tael.

In the world market, at the close of yesterday's session, the price of gold for December delivery increased by more than 29 USD/ounce, to 1,362.7 USD/ounce; during the session, the price reached its highest level since June 19, 1,369.6 USD/ounce. The spot price of gold reached 1,363.75 USD/ounce after recording 26.8 USD/ounce. By this morning, the Asian market continued its upward trend, trading at 1,367.6 USD/ounce.

The world gold price increased sharply due to the purchase of SPDR Gold Trust in the previous session and the depreciation of the USD. In addition, investors also sought gold more as a safe investment channel when the political crisis in Egypt escalated.

According to technical analysis, the immediate resistance level of gold is 1,367.9 USD/ounce followed by 1,375 USD/ounce. The first support level is 1,350 USD/ounce, followed by 1,345 USD/ounce.

According to HNMO -TH