How has the gold market in Nghe An province fluctuated after the US presidential election?

Following Donald Trump's victory in the US presidential election, the US dollar surged, putting significant pressure on gold prices. According to Kitco, the dollar rose sharply, while gold experienced a heavy sell-off after the announcement of Trump's victory. Furthermore, the precious metal is facing a crucial challenge regarding its support level ahead of the Federal Reserve's upcoming interest rate decision. This sell-off pushed the price of gold below $2,708.76 per ounce.

According to expert analysis, gold is likely to fall its 50-day moving average to $2,636.66 per ounce if the Fed signals a more cautious approach to future interest rate cuts. If yields continue to rise and the US dollar maintains its strength, gold may struggle to recover to recent support levels, potentially leading to further price declines in the coming days.

Following the downward trend of global gold prices, domestic gold prices have also fallen sharply over the past three days. Accordingly, on the morning of November 7th, domestic gold prices simultaneously dropped, specifically: SJC gold bars were listed by major brands at 85-87.5 million VND/ounce (buying price - selling price).

Compared to the beginning of the previous trading session, the price of gold bars decreased by 2 million VND/ounce for buying and 1.5 million VND/ounce for selling. Meanwhile, the price of 9999 Hung Thinh Vuong gold rings at DOJI was listed at 84.1-85.5 million VND/ounce (buying - selling); a decrease of 3.4 million VND/ounce for buying and 3 million VND/ounce for selling.

In Nghe An, according to a survey by reporters on the morning of November 7th, the listed prices at different gold shops varied. Accordingly, the price of SJC gold bars has not yet been publicly listed by gold and silver businesses in Nghe An; however, 9999 gold rings are listed at 82.5-83 million VND/ounce (buying price) and 86-87 million VND/ounce (selling price).

At this price, compared to yesterday, the price has decreased by nearly 2 million VND/ounce (selling price) and 1.5 million VND/ounce (buying price). The difference between the buying and selling prices is quite large, 3.5-4 million VND/ounce.

Ms. Mai Tho, an employee at a gold shop on Cao Thang Street (Vinh City), said: "Gold prices have fluctuated continuously in the last three days, falling sharply compared to the closing price of last week's trading session. This morning alone, the price has been adjusted downwards three times."

"While gold was listed at 87.20 million VND/ounce (selling price) and 83.50 million VND/ounce (buying price) at the beginning of the morning, by 11:30 AM, it had further decreased to 87 million VND/ounce (selling price) and 82.5 million VND/ounce (buying price)."

Generally speaking, during this period of volatile gold prices, gold shops are quite crowded and bustling. Most people are just checking prices and monitoring the market. Another factor is that it's currently the peak wedding season, so people are buying rings and jewelry as wedding gifts, and couples are buying wedding gold... However, most gold investment transactions are almost "frozen." Buyers are not in a hurry to buy because they expect gold prices to fall further; sellers are hesitant to sell because they see gold prices plummeting quickly and feel disappointed when prices fall so low.

“I’ve been reading the news and following the gold price forecast, and it’s predicted that the price will continue to fall in the near future, so I’m waiting for a drop to buy and hold. Now, even though it has fallen sharply, the price is still quite high, so I’m hesitant,” said Mr. Nguyen Phuong T., a gold investor from Duc Tho (Ha Tinh province) who came to Vinh City to check gold prices.

Meanwhile, needing money to pay off his house construction debt, Mr. Dinh Van M. (Hung Loc, Vinh City) planned to sell 10 taels of gold he had bought earlier to get cash. However, seeing the price of gold falling too quickly, selling it now would result in a loss of nearly 50 million VND compared to the previous week's price, so he decided to take the gold back, mortgage it with the bank to borrow money, and wait for the price to rise again before selling.

However, some people, fearing that gold prices would fall further, took advantage of the opportunity to lock in profits. “I bought gold when the price was only 71 million VND/ounce, and now selling it at 82.5 million VND/ounce, I still made a profit of nearly 12 million VND/ounce after 6 months of investment. Therefore, at this time, I decided to sell to lock in profits. If gold continues to fall, I will consider buying at the bottom to invest,” said Ms. Duong Viet Thuy Tram, a gold investor in Vinh.

Unlike in major cities where gold prices plummeted and people had to queue and jostle to buy, in Vinh City, the market was mostly stagnant. Only a few people were selling to take profits, while others were observing the market, hoping for further gold price drops before buying to hoard.