Gold Surges Amid Supply-Demand Imbalance
Phu Quy Gold and Silver Company listed gold ring prices at VND 87.9 – 89 million per tael for buyers and sellers.
Doji Group listed gold ring prices at VND 88 – 89 million per tael for buyers and sellers.
Bao Tin Minh Chau Company listed gold ring prices at VND 87.48 – 88.98 million per tael.
Saigon Jewelry Company (SJC) listed gold ring prices at VND 87 – 88.5 million per tael for buyers and sellers, an increase of VND 300,000 per tael compared to yesterday.
SJC gold bar prices were listed by state-owned banks (Vietcombank, Vietinbank, BIDV, Agribank) at VND 89 million per tael. Enterprises listed SJC gold bar prices at VND 87 – 89 million per tael for buyers and sellers.
SJC gold bars have seen a significant increase in the past four months.
At the same time, world gold prices were listed at $2,747 per ounce, an increase of $13 per ounce compared to yesterday. World gold prices are equivalent to VND 83 million per tael.
According to experts, domestic gold prices have surged in the past two weeks following world prices and the year-end gold demand.
These days, at many shops, people find it difficult to buy gold rings as the sellers are always out of stock. Meanwhile, it has been difficult to place online orders for SJC gold bars for many months now.
Dr. Can Van Luc, Chief Economist at BIDV, stated that the high gold prices are due to supply and demand. Accordingly, allowing a number of enterprises that meet the criteria to import gold will help balance supply and demand and bring down prices.
USD Self-employed Rates Rise, Banks Hit Ceiling
In the monetary market, the State Bank of Vietnam listed the central exchange rate at VND 24,255 per USD, down VND 5 from the previous day.
At commercial banks, the exchange rate was at VND 25,197 – 25,467 per USD for buyers and sellers.
Foreign exchange trading spots on the black market bought USD at VND 25,700 per USD and sold at VND 25,800 per USD.
In reality, the exchange rate has been stirring up a new cycle of increases since the end of September. However, it was not until mid-October that the rate really started to “soar”.
Since the beginning of October, the USD bank rate has increased by more than VND 800. Compared to the beginning of the year, each USD at commercial banks has increased by more than VND 1,000.
USD/VND exchange rate is making waves again.
The VND/USD exchange rate is facing a double impact from both global and domestic factors. The DXY index (measuring the fluctuation of the US dollar against six major currencies) increased by 2.4% since the beginning of October, reaching 104 points.
Mr. Nguyen Minh Tuan, CEO of AFA Capital, stated that the exchange rate has become a concern in the past two weeks and the DXY index is at a very tense level for Vietnam’s exchange rate.
“Previously, many believed that the first interest rate cut of 2024 in the US meant that the most worrying situation had passed, the exchange rate would gradually stabilize, and domestic interest rates could be further reduced to support the economy. However, it is clear that there is much to discuss, and we must observe the exchange rate in a ‘bigger picture’,” said Mr. Tuan.
Although the US Federal Reserve (Fed) cut interest rates in September, other countries are also cutting rates faster and more frequently. For example, while the Fed cut rates by 50 basis points, the European Central Bank (ECB) has cut rates three times since the beginning of the year, totaling 110 basis points, bringing the rate to 3.4%/year. As a result, the value of the US dollar, although decreased, remains higher than the euro. The same goes for the Chinese yuan.
Meanwhile, although the monetary policy of the Bank of Japan is to raise interest rates, the pace of interest rate hikes by this bank is not fast. The value of the Japanese yen against the US dollar has also not increased as expected earlier.
“This shows that even though the US cuts interest rates, the strength of the US dollar against the currencies in the DXY basket and other currencies has not diminished. The pressure on the USD/VND exchange rate will, therefore, remain an issue,” said Mr. Tuan.
Commenting on the exchange rate in the coming time, Mr. Tuan said that the pressure on the USD/VND exchange rate would be a long-term issue for Vietnam. Additionally, when the exchange rate is under pressure, interest rates will also be difficult to reduce further.
Is It Worth Investing In Gold Rings At Their All-Time High Price?
The domestic gold ring price has been on a record-breaking streak over the past week, with gold ring prices matching those of gold bars for the first time ever at the 89 million VND per tael mark.
The Surprising Rise in Gold Prices: Are Buyers at Risk of Losing Out?
Despite gold prices reaching record highs, there are underlying risk factors that could cause a dramatic shift, leading to a potential downward spiral in the near future.
The Golden Opportunity: Rising Prices and a Shining Future
The price of gold on the global market, as observed on the Kitco exchange this 27th of October, stood at $2,747 per ounce, marking a notable increase of $7.84 from the previous day’s rates.
The Golden Challenge: Navigating the Complex World of Buying and Selling Gold
The SJC gold bar and gold ring prices have reached new heights, yet very few jewelry stores are willing to buy.
The Golden Opportunity: Unveiling the Latest SJC Gold Prices and Beyond
On its opening day on the 24th of October, domestic gold prices remained relatively unchanged from the previous day’s close, despite a sharp downturn in the global gold market.
