Nghe An gold market slows down after Prime Minister's directive
(Baonghean.vn) - After increasing crazily and continuously setting new records, at the end of this week's trading session, gold prices turned around and dropped shockingly, each tael of gold decreased by nearly 3 million VND. Gold prices decreased but the market was quite quiet, gold trading slowed down...
At the end of the week's trading session, the world gold price stood at 2,344 USD/ounce. Compared to the highest point of the week on April 12 at 2,448.8 USD/ounce, the gold price turned down by 104 USD/ounce. Converted according to the current exchange rate at Vietcombank, the world gold price is about 69.848 million VND/tael (excluding taxes and fees), down nearly 3 million VND/tael compared to the peak price.
In the domestic market, after the Prime Minister requested the State Bank to immediately handle the situation of high difference between domestic gold bar prices and international gold prices, while ensuring the gold market operates stably, healthily and effectively, the gold price also turned around and dropped sharply by 2 million VND/tael.
On April 12, the price of SJC gold jumped to VND85.02 million/tael. At the end of the week, the price of SJC gold stood at VND83.1 million/tael. As for gold rings, they are currently listed at VND74.3 - 76.2 million/tael, down nearly VND3 million/tael compared to the peak price of VND79 million/tael last week.
In Nghe An, by the morning of April 14, gold also “evaporated” sharply when the price of SJC gold bars was listed at 80.3 million VND/tael (buy) and 83.5 million VND/tael (sell); plain gold rings were 72 million VND/tael (buy) and 76.5 million VND/tael (sell).
Ms. Ho Thi Tho, a gold shop employee on Cao Thang Street, said: “Last week, the gold price was extremely volatile, with both shocking increases and decreases. There were times when we continuously adjusted the selling price 3-5 times in one day.
A notable development recently is that the price of plain gold rings has increased faster than the price of SJC gold bars, following the world price jump. Although it turned down sharply at the end of this week, the overall price of 24K gold rings of all types has increased for the second consecutive week by a total of more than 7 million VND/tael.
The price of gold plummeted at the end of the week compared to when the price of gold peaked, but in general, the price of gold has been continuously increasing for 2 consecutive weeks. Due to many continuous fluctuations, the gold market in Nghe An has slowed down, people rarely trade at this time, only a few people, or need money for other jobs, or need gold for weddings or gifts, buy and sell at this sensitive time.
Ms. Dinh Thi My A., a customer, said: “I came here to consult the gold price, not to buy or sell. Because if I compare the time I bought SJC gold bars a week ago at VND84 million/tael, and now sell them at VND80.3 million/tael, I have lost more than VND3 million/tael. The price difference between buying and selling makes it difficult for short-term investors to make a profit, and they can even lose heavily if they do not carefully consider the time to put money in and the time to sell to take profit.”
Not only affected by the world gold price, but domestic and provincial gold prices also fell sharply after the Government Office issued Notice No. 160 on the Prime Minister's conclusion at the meeting on solutions to manage the gold market in the coming time on April 12.
Immediately afterwards, the State Bank also announced an increase in the supply of gold bars to handle price differences; requiring businesses to deploy the use of electronic invoices in gold buying and selling transactions to improve transparency and management efficiency.
At the same time, this agency also immediately carried out the work of grasping the situation, inspecting, examining, and supervising according to its assigned functions, tasks, and powers; strictly handling acts of gold smuggling across the border, profiteering, speculation, and manipulation of gold prices.
Discussing this issue, Mr. Nguyen Duy De - Director of Agribank North Central Gold Branch said: "In fact, it can be seen that the market reacted immediately after the direction of the Prime Minister and the State Bank. Accordingly, the domestic gold price turned down sharply despite the world gold price at times reaching a record high. The current market psychology is to wait for action from the State Bank, so transactions have slowed down; the gap between domestic and world gold prices has narrowed.
However, domestic gold prices will follow the fluctuations of world gold prices. According to analysts, although gold prices are warned to be in the overbought zone (meaning when prices have increased significantly in a certain period of time without many significant adjustments), the upward trend has not yet reversed. Factors related to ongoing geopolitical conflicts, increased demand for safe haven gold... are pushing gold prices to continue to increase.