Should you take profit or buy more as gold prices hits new highs before Tet?

Compared to the beginning of the year, investors holding SJC gold are making an average profit of 4 million dong per tael. Should investors take profits early or continue buying and wait for gold prices to rise even more?

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Gold prices fluctuate sharply on the eve of Tet

Since the beginning of the lunar year 2024 until now, domestic gold prices have been fluctuating strongly. In the first trading session of January, SJC gold was priced at 71.5 – 74.52 million VND per tael, but by the end of January, it reached 75.4 – 77.92 million VND per tael. Many trading sessions saw price fluctuations of up to one million VND per tael.

Entering February, domestic gold prices adjusted up and down in line with global trends, but remained high. Of note, on February 2nd, the price of gold soared to nearly 79 million VND per tael. However, by the end of the fourth week of February (i.e., on the 25th day of the last lunar month), SJC gold experienced a sharp decline to nearly 78 million VND per tael. Nevertheless, compared to the beginning of 2024, which is just over one month before the Lunar New Year, gold buyers still enjoyed an average profit of 4 million VND per tael.

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Should you buy or sell?

“Should you continue to buy or sell” is the question that gold investors are considering. Because compared to the beginning of the year, gold buyers have made a profit of 4 million VND per tael. However, many people still expect that in 2024, the price of gold could reach 85 million VND per tael. Or, on the day of the God of Wealth, the price of gold could experience a sudden increase.

Regarding the question of “whether to continue buying or selling gold,” Mr. Ngo Thanh Huan, CEO of FIDT Investment and Asset Management Consulting Joint Stock Company, predicts that the price of SJC gold will undergo significant adjustments in the near future. According to Mr. Huan, one factor that will influence the price of gold is that the State Bank and the Government have intervened in the irrational price increase of SJC gold in the past period. In particular, the amendment of Decree 24 will also affect the price of gold.

Regarding the timing of when to buy and sell gold, Mr. Huan stated that when gold suddenly increases by 10-15%, investors should sell. After that, they can buy when the price of gold goes down and the market and economic conditions support a trend of increasing gold prices again.