The world gold price has recovered quite strongly from the bottom of the past 8 months, but is still about 7.5 million VND/tael lower than the domestic gold bar price this morning (March 1). The free USD price is heading towards the 24,000 VND mark, while the bank USD price is at the 23,100 VND range.

At nearly 10:00 a.m. today, gold and silver corporations listed the price of SJC gold bars for the Hanoi market at 55.85 million VND/tael (buy) and 56.25 million VND/tael (sell). Compared to the weekend, the price of gold bars has increased by 350,000 VND/tael for buying and by 150,000 VND/tael for selling.

Domestic gold price is 7.5 million VND/tael higher than world price. Photo: Internet

In the Ho Chi Minh City market, SJC Company announced the price of gold bars of the same brand at 55.95 million VND/tael and 56.35 million VND/tael.

Compared to the converted world gold price, the retail price of SJC gold bars is 7.5 million VND/tael higher. This gap has narrowed compared to the difference of over 8 million VND/tael at the weekend, because the domestic gold price this morning increased more slowly than the world price.

According to the trend of recent years, domestic gold prices increase and decrease more slowly than international prices, so the difference between domestic and international gold prices often narrows when international gold prices decrease and widens when international prices increase.

In a recent exchange, Vice President and General Secretary of the Vietnam Gold Trading Association (VGTA) Dinh Nho Bang said that the current large gap between domestic and world gold prices reflects a shortage of gold supply compared to demand.

Prices of other 999.9 gold products fluctuated above the threshold of 53-53.5 million VND/tael for buying and around the threshold of 54 million VND/tael for selling.

The spot gold price in the Asian market at 10:00 a.m. today, Vietnam time, stood at 1,749.6 USD/oz, up 13 USD/oz, equivalent to an increase of nearly 0.8%, compared to the closing price last weekend in New York. This price is equivalent to about 48.7 million VND/tael if converted according to the USD selling price at Vietcombank and excluding related costs.

During Friday's session in New York,gold priceGold fell nearly 2%, to its lowest level since June 2020. Under pressure from rising US Treasury yields, the price of gold fell 2.7% for the week, and 6.6% for the month - marking the sharpest monthly decline since November 2016.

Regarding the gold price outlook this week, TD Securities' Head of Global Strategy, Mr. Bart Melek, said that gold prices are very likely to slide to 1,660 USD/oz.

According to Mr. Melek, the overall market sentiment is becoming more optimistic thanks to the stimulus plan and the accelerated progress of the vaccine deployment. The only major concern at the moment is that the economic recovery will push up inflation, pushing up bond yields. Last week, the yield on the 10-year US Treasury bond rose to 1.6%, the highest in more than a year. Until the US Federal Reserve (Fed) reassures the market that interest rates will not rise soon and that the Fed will consider yield curve control, this concern will remain and continue to be detrimental to gold prices.

"Gold investors will have to worry about the possibility that the Fed will not commit to maintaining its ultra-loose monetary policy," Mr. Melek said. "That is why gold prices will fall further before rising again."

The USD/VND exchange rate on the free market increased sharply following the difference between domestic and international gold prices. Last weekend, the free USD price increased by about 130 VND compared to the beginning of the week, surpassing the 23,900 VND mark.

On Monday morning, the free exchange rate in Hanoi showed no signs of cooling down, remaining at 23,890 VND (buy) and 23,940 VND (sell).

At Vietcombank, USD is listed at 22,930 VND and 23,110 VND.