At 9:30 AM on May 1, Vietnamese time, the world gold price continued to drop sharply to $2,287/ounce, “evaporating” a total of about $40/ounce compared to the beginning of the week.
The volatility of the world gold price also caused the domestic gold price to drop sharply. Consequently, because the gold market is still on holiday, the SJC gold and ring gold prices have a large gap between businesses. Many large gold companies and commercial banks have not resumed trading yet. Bao Tin Minh Chau Company traded SJC gold bars for purchase at VND 82.6 million/tael, and sale at VND 84.65 million/tael.
Meanwhile, the SJC gold bar price on the open market is traded around VND 82.7 million/tael for buying, and VND 83.4 million/tael for selling, down by another VND 500,000 per tael compared to yesterday.
The price of ring gold dropped sharply this morning
The price of ring gold and 24K jewelry of all kinds has been adjusted down more sharply. Mi Hong Company traded plain ring gold for purchase at VND 71.8 million, and sale at VND 73.2 million. Meanwhile, gold shops in Ho Chi Minh City this morning listed the price of 24K ring gold for purchase at only VND 71.6 million/tael, and sale at VND 72.4 million/tael. The difference in the price of plain ring gold at gold shops and major gold brands has reached VND 2-3 million/tael.
If calculated over several days of the holiday, gold shops have adjusted the price of plain ring gold down by about VND 1.5 million/tael.
Domestic gold prices have dropped due to the downward trend in world gold prices. From the historical peak of $2,410/ounce reached in mid-April, to date, the gold price has “evaporated” by about $120/ounce (VND 3.8 million/tael). Meanwhile, the current price of SJC gold bars is only more than VND 85.4 million lower than the peak, more than VND 1 million/tael.
This situation has caused the gap between domestic and world gold prices to remain high. The current world gold price converted at the listed exchange rate is about VND 70.2 million/tael, which is lower than ring gold by about VND 2-3 million and lower than SJC gold bars by about VND 14 million/tael.
According to analysts, the world gold price is awaiting information from the US Federal Reserve’s (FED) policy meeting in early May. The market is still predicting the possibility of the FED deciding to raise interest rates or postponing it due to the volatility of US economic data. If the FED decides to cut interest rates, the gold price will continue to rise. On the contrary, if the agency does not rush to cut interest rates and maintains the peak as in the past, the gold price could drop sharply.
