Gold prices began the new trading week with little fluctuation, but SJC gold bars continued to plummet compared to the previous Friday, currently trading around 5 million VND lower per tael than the record high set last week. As a result, the gap between domestic and international gold prices has also narrowed significantly from the 20 million VND per tael mark.
At nearly 10 am today (May 13), Phu Quy Group listed the buying and selling prices of SJC gold bars in Hanoi at 85.5 million VND per tael and 87.5 million VND per tael, respectively, a decrease of 1.5 million VND and 1.9 million VND per tael, respectively, from the last update on Sunday.
In Ho Chi Minh City, SJC Company quoted the same brand of gold bars at 85.5 million VND per tael (buying) and 88.5 million VND per tael (selling).
Last Friday, retail prices of SJC gold bars surged abnormally to 92.4-92.5 million VND per tael, an all-time high, and a staggering 20 million VND per tael higher than international gold prices, also a record-breaking difference. Long queues of people and investors buying gold reappeared, while gold prices jumped erratically on the boards of major jewelry companies.
However, following the government’s directive for the State Bank to “immediately address the issue of the significant gap between domestic and international gold prices and ensure the stable and efficient operation of the gold market,” gold prices plummeted over the weekend and continued to adjust downward when the market opened this Monday.
Up to now, retail prices of SJC gold bars have dropped by 4-5 million VND per tael from the record high. Those who bought gold bars at the peak and sell at this moment will incur a loss of about 7 million VND per tael.
Prices of gold products also witnessed a decline this morning. Phu Quy reported the prices of Phu Quy gold rings at 75.45 million VND per tael and 76.85 million VND per tael, down 200,000 VND and 250,000 VND per tael, respectively, from Sunday’s closing prices.
The Rong Thang Long gold rings, offered by Bao Tin Minh Chau Company, were priced at 75.33 million VND per tael and 76.83 million VND per tael.
In the Ho Chi Minh market, SJC Company quoted gold ring prices at 74.9 million VND per tael (buying) and 76.6-76.7 million VND per tael (selling).
At the same time, around 10 am, spot gold prices in the Asian market stood at $2,360 per ounce, down $0.07 per ounce from the previous Friday’s close in New York, according to data from the Kitco exchange. This price is equivalent to about VND 72.4 million per tael if converted according to Vietcombank’s selling exchange rate.
Compared to international gold prices, SJC gold bars are currently trading at a premium of about VND 15-16 million per tael, while gold rings are VND 4.3-4.5 million per tael higher.
According to analysts, gold investors in the international market are being cautious as important US inflation data is expected to be released this week, including the Producer Price Index (PPI) scheduled for Tuesday and the Consumer Price Index (CPI) for Wednesday. On Tuesday, the Chairman of the Federal Reserve will deliver a speech in Amsterdam, the Netherlands.
All this information and data could influence the Fed’s interest rate outlook, the US dollar exchange rate, and gold prices. According to experts, gold prices are unlikely to break out and set new records in the short term without new catalysts, such as data indicating weakening growth and falling inflation in the US.
In an interview with Kitco News, Naeem Aslam, Chief Investment Officer of Zaye Capital Markets, said that the rapid rise in gold prices last week could lead to short-term profit-taking.
“Traders have not received a clear signal from the Fed regarding monetary policy. Employment data and other economic indicators suggest the economy is slowing down, but the Fed remains committed to keeping interest rates higher for longer. All of this is strengthening the US dollar and making gold less appealing,” Aslam remarked.
Analyzing the technical outlook for gold prices, Alex Kuptsikevich, a senior market analyst at FxPro, argued that new upward momentum has emerged after gold prices held crucial support levels. However, he also stated that to surpass the all-time high of $2,400 per ounce, gold prices would require additional supportive factors.
