World gold prices started the new trading week on an upward trend, but domestic gold prices this morning (February 19) decreased compared to the end of the week. Notably, domestic gold prices fell despite today being the day of the God of Wealth – a time of year that usually sees strong demand for gold and a sharp increase in domestic gold prices.
At just after 8am, Phu Quy Group listed SJC gold prices for the Hanoi market at VND 75.4 million per tael (buying) and VND 78 million per tael (selling). Compared to the end of Sunday afternoon, SJC gold prices at this company have now decreased by VND 400,000 per tael for the buying side and VND 100,000 per tael for the selling side.
The Phu Quy 999.9 round plain ring has prices of VND 64.6 million per tael and VND 65.8 million per tael, respectively, a decrease of VND 300,000 per tael and VND 200,000 per tael compared to yesterday afternoon.
The highest selling price per gram of gold at Phu Quy is currently the 0.1-ounce Phu Quy 999.9 Gold God of Wealth product. This is a small weight product that serves the demand for auspicious gold buying, with a selling price equivalent to VND 79.9 million per tael, while the buying price is equivalent to VND 64.6 million per tael.
The same product but with a weight of 0.2 ounces has a selling price of VND 74.95 million per tael. The 0.5-ounce type has a price of VND 65.9 million per tael, almost equal to the price of the Phu Quy 999.9 round plain ring.
At some other major jewelry companies in Hanoi, SJC gold prices are commonly below VND 76 million per tael for the buying side and around VND 78 million per tael for the selling side. The Phu Quy 999.9 round plain ring has prices around VND 64.5 million per tael and VND 66 million per tael, respectively, for the buying and selling sides.
In Ho Chi Minh City’s market, PNJ Company quotes SJC gold prices at VND 75.8 million per tael (buying) and VND 78.4 million per tael (selling). The Phu Quy 999.9 round plain ring has prices of VND 63.35 million per tael and VND 64.5 million per tael.
According to some major jewelry companies in Hanoi, gold buying demand for auspicious occasions after the lunar New Year this year has decreased compared to previous years. There were no long lines to buy gold in the early morning of the God of Wealth Day at Tran Nhan Tong “gold street,” partly due to decreased demand and partly because many people had already made their purchases in the days before.
Basically, the movement of domestic gold prices in the early hours of this morning reflected a slowdown in demand, with prices showing little volatility and even decreasing despite higher world gold prices. In previous years, domestic gold prices usually rose sharply on the God of Wealth Day, regardless of whether world gold prices were up or down.
Just after 8am Vietnam time, spot gold prices in the Asian market stood at USD 2,018.3 per ounce, an increase of USD 4.1 per ounce compared to the previous week’s close in New York – according to data from Kitco. This price is equivalent to about VND 60 million per tael if converted at the USD selling rate at Vietcombank.
Thus, compared to the converted world gold price, retail SJC gold prices are about VND 18 million per tael higher.
Experts are not optimistic about the possibility of an increase in world gold prices this week, believing that the precious metal continues to face downward pressure from the possibility of the US Federal Reserve (Fed) keeping interest rates higher for longer. Most of the US economic data released last week showed solid growth and slower-than-expected inflation. Therefore, the market believes that the Fed will not start cutting interest rates until at least June, and the number of interest rate cuts this year may not exceed 3 times.
New expectations about interest rates are pushing the yields of US Treasury bonds and the USD exchange rate to maintain an upward trend, putting downward pressure on gold prices. Since the beginning of the year to date, the Dollar Index measuring the strength of the USD against a basket of 6 major currencies has increased by more than 2.8%.
The Chairman of Adrian Day Asset Management, Adrian Day, predicts that world gold prices will continue to fluctuate within a narrow range this week. “Gold prices will continue to be dominated by US economic data until there is clear information that the Fed will cut interest rates. Now is not the time for that,” he said.
The US financial market will be closed for the Presidents’ Day holiday on Monday and there will not be any major US economic data released this week, apart from the weekly unemployment report. However, statements by Fed officials about monetary policy prospects will continue to attract investor attention. Last week, statements by Fed officials showed caution in the issue of interest rate cuts.
