Gold prices in the world started the new trading week in a downward trend, but the price of gold in the country (Vietnam) this morning (March 11) still reached a new peak, with the price of a gold bar surpassing 71 million dong/tael. Precious metals prices on the international market are benefiting from the possibility of major central banks cutting interest rates, while domestic gold prices are being pushed up by the scarcity of supply.
At nearly 10 a.m. today, Phu Quy Group listed the SJC gold bar price for the Hanoi market at 80 million dong/tael (buying) and 82 million dong/tael (selling). Compared to Saturday, the SJC gold bar price at this company has increased by 400,000 dong/tael in the buying direction but remained unchanged in the selling direction.
The 999.9 pure gold Phu Quy brand round ring has a price of 69.85 million dong/tael and 71.15 million dong/tael, corresponding to the buying and selling prices, an increase of 450,000 dong/tael at each end of the price compared to the end of the week.
Bao Tin Minh Chau Company quotes the 999.9 pure gold Rong Thang Long round ring at 69.98 million dong/tael and 71.28 million dong/tael, an increase of 500,000 dong/tael compared to the end of the week.
In Ho Chi Minh City market, SJC Company quotes the gold bar of the same brand at 80 million dong/tael and 82 million dong/tael, corresponding to an increase of 500,000 dong/tael and remaining unchanged compared to Saturday.
SJC round rings have prices of 68.8 million dong/tael (buying) and 70.05-70.15 million dong/tael (selling), depending on the weight of the product, an increase of 500,000 dong/tael at each end of the price.
Spot gold prices in the Asian market at nearly 10 a.m. Vietnam time were at $2,177.7/oz, down $1.9/oz, equivalent to a decrease of nearly 0.1%, compared to the closing price of the Friday trading session on the Kitco exchange.
This price is equivalent to about 65 million dong/tael when converted at the selling exchange rate of USD at Vietcombank, a decrease of 200,000 dong/tael compared to the end of the week.
As international gold prices decreased while domestic gold prices increased, the price difference between domestic and international gold prices increased compared to the end of the week. Specifically, the retail SJC gold bar price is now more than 17 million dong/tael higher than the converted international price, up from more than 16.8 million dong/tael at the end of the week. Gold rings are nearly 6.2 million dong/tael higher than the international price.
According to gold business circles, the large price difference between domestic gold and international gold comes from the increasing demand for gold by people in recent months, while the State Bank has not yet granted permission to import gold raw materials.
Meanwhile, global gold prices are being supported by investors’ increasing bets on the possibility of large central banks such as the Federal Reserve (Fed), the Bank of England, the European Central Bank (ECB)… will start cutting interest rates this year. Of these, the Fed and ECB are expected to launch monetary easing in June.
Last week, global gold prices reached a record high in 4 consecutive sessions. On Friday, there was a time when spot gold prices surpassed $2,200/oz, an all-time high.
The February employment report from the U.S. did see an increase in unemployment rates, which reinforced the possibility of the Fed cutting interest rates in June. In fact, bets on the Fed cutting interest rates from May have also increased, although this possibility is still low, at about 30%.
“The February employment report confirms that the Fed will have to take some action on interest rates, and traders have increased bets on the decline of the U.S. dollar. This is beneficial for the price of gold,” said Naeem Aslam, chief investment officer at Zaye Capital Markets, said to Kitco News. He believes that it is very likely that the price of gold will reach $2,300/oz by the end of this year.
According to Nicky Shiels, head of precious metals strategy at MKS PAMP Group, although gold is benefiting from the prospect of Fed interest rate cuts, there is actually no specific catalyst for this surge in gold prices. She believes this is a good sign for the continued upward trend of gold prices.
“The underlying price of gold is increasing day by day. There is no specific catalyst, so it can be believed that there is a stable and hidden gold buying force behind this price increase. Public gold funds have still been sold in the past week, but it seems that they still cannot dominate the hidden buying force,” she commented.
However, some analysts note that the gold market may be sensitive to some profit-taking activities. “It is not ruled out that gold prices are being pushed up by speculators. These are people who do not intend to hold on to their gold for long and may quickly sell if things don’t go as planned,” warned Ole Hansen, Head of Strategy at Saxo Bank.
This week, gold prices are expected to be heavily influenced by the U.S. Consumer Price Index (CPI) report for February. If this report shows higher inflation than expected, selling pressure on gold will appear. The report will be released by the U.S. Labor Department on Tuesday.
