On March 12, the domestic gold price reached an all-time high with SJC gold trading at around 80.5-82.5 million VND per tael. The price of 24k gold rings is also at its highest point in history, with some places selling it for over 71.3 million VND per tael. The rising gold prices in recent weeks have led many investors to decide to lock in their profits. Observing on “gold street” Tran Nhan Tong on March 12, the number of people coming to trade increased significantly, creating a bustling trading atmosphere not unlike that of the God of Wealth’s Festival three weeks ago. In just over a week, many stores have been overloaded, and people have had to wait in long lines. The difference is that most of the transactions in recent days have been selling.
However, overnight, the market reversed in surprise as the domestic gold prices plummeted when the market opened on March 13. The price of SJC gold on March 13 dropped by 2-2.5 million VND per tael to 78-80.5 million VND per tael. Meanwhile, the price of 24k gold rings also dropped by 2 million VND per tael, falling below the 69 million VND per tael mark.
Within just one day, the fortunes of gold investors have changed drastically. Compared to selling yesterday, those who own gold have lost 2.5 million VND per tael by selling it today. For those who bought gold on March 12 but are selling it now, they are losing up to 5 million VND per tael (due to the difference between the purchase and sale prices).
Ms. Nguyen Hong (Hoang Mai) shared: “I have been continuously buying gold rings from 2022-2023, sometimes buying them for just over 5 million VND per tael, and the highest price was only 5.7 million VND per tael. I have accumulated 23 taels of gold rings after 2 years, estimating the cost price to be around 125 million VND. On the morning of March 12, I sold the gold at a price of 7 million VND per tael, making a profit of 35 million VND. Ms. Hong breathed a sigh of relief because just one day later, gold prices fell sharply. If she had hesitated and sold the gold only today, she would have made a profit of only about 20 million VND.
Many gold traders have also taken advantage of the recent days to lock in their profits. Mr. Tuan (Thanh Xuan, Hanoi) shared that at the beginning of the year, when the price of SJC gold dropped sharply, he saved money and bought about 4 taels of SJC gold at a price of 74 million VND per tael. In the past few days, when the price of SJC gold kept hitting new highs, he sold the gold and made a profit of about 6 million VND per tael, totaling about 24-25 million VND in profit. “Considering that I made an 8% profit in just over 2 months, it’s a pretty decent number. I’m not sure if the gold price will go up further or not, but an 8% profit in such a short time is good enough for me. I’ll take the profit and keep an eye on the market,” said Mr. Tuan.
The domestic gold price on March 13 decreased based on the world gold price. On the evening of March 12 (Vietnamese time), gold on the international market dropped by over $30 to $2,155 per ounce. However, the adjustment of the domestic gold price today is much larger than the world gold price.
The difference between the domestic gold price and the world gold price is also significant. Currently, international gold is equivalent to about 64.5 million VND per tael based on the bank’s USD exchange rate and 66.6 million VND per tael based on the free market USD exchange rate.
The sharp drop in the domestic gold price may be due to the high number of profit-taking trades in recent days. In addition, the amendment of Decree 24 on gold market management has also raised concerns and prompted many people to sell to reduce risks.
