Nghe An market is quiet as gold prices dance
(Baonghean.vn) - Gold prices hit a 7-year peak on January 8 and then fell by half a million VND/tael on January 9. In Nghe An, trading was quite quiet, even though this was the time close to Tet, when purchasing power usually increases.
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| The erratic fluctuations in gold prices have caused the number of customers at gold shops to slow down. Photo: Thanh Phuc |
Normally, the end of the year is the time when the amount of gold sold increases due to increased demand from people. However, due to the sharp increase in gold prices in the opening trading sessions of 2020, in Nghe An market, the number of people selling gold is larger than the number of people buying gold.
Ms. Manh My Duyen, a jewelry company on Tran Phu Street (Vinh City) said: “In the past week, the amount of gold bought at the store was twice as high as the amount of gold sold. This is the opposite trend compared to previous years when at the end of the year, the number of people buying gold would be much higher than the number of people selling gold.”
Usually, at the end of a business year, people often recalculate their spending, and if they have any surplus, they will buy gold to store. However, when the gold price reached a record high after 7 years, people were hesitant to invest in this precious metal. Especially after reaching a sky-high price of over 46 million VND/tael in yesterday's trading session (January 8), on January 9, the price suddenly dropped sharply, causing people and gold investors to have a wait-and-see mentality.
Mr. Trinh Huu Hung, a resident who is researching the gold market, said: “At the end of the year, after balancing expenses, there is still some money left, planning to buy gold bars to store as capital when needed. However, the price of gold is high so I don’t dare to buy. Maybe I will switch to buying foreign currency or investing in real estate.”
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| The number of customers buying gold jewelry, lucky gold, and Kim Ty mascots has also decreased compared to previous years due to the high price of gold. Photo: Thanh Phuc |
Besides, according to the rule, at the end of the year, the demand for buying gold jewelry, mascots, and lucky gold also increases, but this year, the price of gold has increased dramatically, causing the number of customers trading this item to decrease sharply.
On the contrary, when the gold price is high, many people are not in a hurry to sell even though they need capital to close business deals and pay off debts, but are waiting for market fluctuations, and will decide near Tet.
Therefore, currently, the gold market in Nghe An is trading moderately.
In the early days of 2020, the gold market experienced unprecedented volatility in many years after the geopolitical shock of the US using a drone to kill a powerful Iranian general. This was a major event and was considered to be able to change the situation in the Middle East. On CNBC, expert Jeffrey Currie from Goldman Sachs said that gold could increase even higher because history has shown that increasing geopolitical tensions often push the price of this precious metal very high.
