Nghe An gold market 'froze' due to price fever
Last week, the market witnessed a record increase in gold prices. In contrast to the price fever, the gold market in Nghe An fell into a "frozen" state...
At the end of the weekend trading session, this morning (April 13), the price of 9999 round gold rings of domestic brands was listed at 101.2 - 101.6 million VND/tael (buy) and 104.8 - 105.1 million VND/tael (sell); an increase of 4.5 million VND/tael for buying and 4.7 million VND/tael for selling compared to the closing session of last week. The difference between buying and selling was at 3.6 million VND/tael.
In Nghe An, the gold price as of 11:30 am on April 13 was listed at 99 - 99.3 million VND/tael (buy) and 103 - 103.8 million VND/tael (sell). Accordingly, the gold price in Nghe An is being listed by businesses at 200,000 VND/tael lower than the domestic gold price in both buying and selling directions. In the past week, the gold price in Nghe An only increased by about 2 million VND/tael, lower than the domestic increase of 2.5 million VND/tael.
Although the gold price has increased sharply, in Nghe An, the gold market is not as vibrant as expected. Records at large gold shops in Vinh City and neighboring districts show that the gold market is quite gloomy. Because currently, people who intend to buy gold to store or prevent economic risks are hesitant because the price has exceeded the psychological mark of 100 million VND/tael. They are afraid that after buying, the price will drop and they will suffer losses.
Furthermore, many people expect that after a period of rapid increase, the price will adjust down. Therefore, they temporarily stay out, "watching the market". Some people are afraid that if they do not buy now, the price will increase further, leading to a feeling of "uncertainty". However, they are still cautious, do not dare to "put money down" immediately, only buy very small quantities.
Meanwhile, on the other hand, gold owners are not interested in selling, they expect the price to continue to increase in the near future, so they consider "hoarding" and waiting for the next peak. Some people, even though they are making a profit, still do not want to sell because they consider gold a safe haven amid signs of global economic instability (geopolitical conflicts, risk of recession...). Therefore, the gold market in Nghe An at this time seems to be in a "frozen" state in both buying and selling.
Ms. Tran Dieu Linh, in charge of the gold counter of a gold shop on Tran Phu Street (Vinh City) said: "Customers come to ask a lot, but there are very few real transactions. The number of customers coming to the shop increased by 30% last week, but transactions did not increase accordingly. Many people came 2-3 times just to ask for prices, compare and hesitate. Buyers are afraid of chasing the peak, sellers only sell sporadically. Everyone is waiting to see if the price will go up again. The gold shop itself does not dare to import a lot of goods because the price fluctuates every second. If we sell and the price goes back up, we will lose money immediately."
Meanwhile, individual investors are temporarily withdrawing due to the rapid fluctuations in gold prices, and surfing is facing many risks. Mr. Nguyen Phu H. (Quan Bau Ward, Vinh City) said: "I often "catch the wave" to buy and make a profit, not much, only about 30-50 million VND/time thanks to quickly buying and selling gold rings. But this time, the difference between buying and selling prices is too big, fluctuating continuously, so the risk is high. I temporarily switched to another channel, which is safer."
In rural areas, the gold market is somewhat more stable as transactions are still taking place normally. Ms. Nguyen Huong, owner of a gold shop in Thanh Chuong, said: "Unlike in the city, most gold buyers in the countryside buy to save, buying 1-2 taels, not much. Therefore, when they have extra money, they buy to save, not to buy for the moment. The high price of gold has caused some people to sell old gold, selling only a few taels, mainly to make a profit of a few million VND. The number of customers selling is also quite small."
In the context of the current record high gold price, buyers are afraid of "catching the peak", sellers are regretful if the price continues to increase. Everyone is in a state of careful consideration, this hesitation is slowing down the gold market.
According to the latest Kitco News weekly gold survey, industry experts are more bullish on gold than ever. Wall Street is almost unanimous in its view that gold prices will continue to rise in the near term, while investors in Kitco’s online survey also see higher prices next week.