(CPV) - In the context of a volatile global economy and the prospect of a US recession in 2024, gold has emerged as a safe haven investment channel. However, recent sharp increases and sudden drops have made domestic investors more cautious about this precious metal. Regulatory flexibility and a reasonable investment strategy are the keys to dealing with the gold market during this volatile period.
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| Illustration photo (Photo: MP) |
After a sharp drop of VND5 million/tael on November 7, the gold market recovered on the morning of November 8. On the morning of November 8, Saigon Jewelry Company (SJC) listed the buying price at VND82 million/tael; the selling price at VND86.5 million/tael, an increase of VND1 million/tael for both buying and selling prices compared to the end of November 7. The difference between the selling price of gold and the buying price is VND4.5 million/tael higher.
At 8:33 a.m. on November 8, DOJI Group listed the buying and selling price of gold at VND82 - 86.5 million/tael, equal to the buying and selling price compared to the end of November 7. The difference between DOJI gold buying and selling prices is VND4.5 million/tael.
The price of gold rings of some gold brands also increased compared to the previous session. The price of Hung Thinh Vuong 9999 round gold rings at DOJI is listed at 82.10 - 84.40 million VND/tael (buy - sell). SJC Company listed the price of gold rings of type 1-5 at only 82 - 84.8 million VND/tael (buy - sell). Bao Tin Minh Chau listed the price of plain round rings at 81.28 - 84.08 million VND/tael (buy - sell).
On the world market, the gold price on Kitco is listed at 2,701.7 USD/oz. Converted according to foreign exchange rates, the world gold price is equivalent to 82.95 million VND/tael, 3.55 million VND/tael lower than the SJC gold selling price this morning.
Gold prices in the past two sessions have dropped sharply compared to previous record levels, because at the end of October, the price of SJC gold bars reached 90 million VND per tael, while the price of 9999 gold rings also recorded 89 million VND per tael.
The main reason came from the impact of the international market when the global gold price plummeted due to concerns about the US fiscal policy after Donald Trump won the election. However, within 24 hours, the gold price recovered slightly, creating large fluctuations in the short term. This caused confusion for many investors, causing a large amount of gold to be sold on the market and leading to a situation where gold businesses had to temporarily stop purchasing.
Associate Professor Dr. Nguyen Huu Huan (Ho Chi Minh City University of Economics) said that the large fluctuations in gold prices may continue in the coming time, as investors continue to monitor the market's reaction to US economic policy, the Fed's moves and the de-dollarization of the BRICS bloc. Any change in these factors could push gold prices up or down significantly.
Currently, gold is strongly influenced by two major factors: Expectations that the US may cut interest rates in 2024 and the trend of increasing gold reserves in many countries. The BRICS bloc, in an effort to reduce dependence on the USD, has increased gold purchases to strengthen its domestic currency, creating a significant purchasing force in the world market. Experts say that this will make it difficult for gold prices to cool down in the short term, and may even create strong increases, putting pressure on domestic gold prices.
The continuous increase in gold prices not only attracts the attention of investors but also poses challenges for management agencies. Mr. Huynh Trung Khanh, Vice President of the Vietnam Gold Trading Association (VGTA), said that market management needs to be flexible and sensitive to the international situation, to ensure that the domestic gold market is not too affected by external factors. Meanwhile, monitoring measures also need to be tightened to prevent speculation and protect people's rights, avoiding the situation where some people hoard gold to push up prices and make profits.
For investors looking to profit from gold, it is important to carefully assess the short-term and long-term factors. Although gold is a safe investment channel, experts also warn that this precious metal cannot increase in price forever. After a rise of more than 40% since the beginning of the year - the highest increase in history - gold prices are likely to correct in the coming time. According to experts, the gold fluctuation cycle is usually not linear but will have short-term increases and decreases to adjust the value.
Experts advise that if investors want to participate in the gold market at this time, they should only transfer 10%-15% of their idle money into gold and focus on highly liquid products such as SJC gold bars or 9999 gold rings. In addition, if investing in gold to maintain the value of assets in the medium and long term, they should consider buying during deeper price drops instead of chasing hot price increases.
Dealing with the risks of gold price fluctuations requires investors to have a good understanding of the market and to constantly update international fluctuations. While gold prices are strongly affected by US economic policy, changes in exchange rates, geopolitical tensions or new economic trends can cause gold prices to fluctuate suddenly. It is difficult to predict the exact timing of buying and selling in the short term, but long-term investment can be a safer choice if investors allocate the proportion appropriately.
On the part of the management agency, it is very important to closely monitor and control the domestic gold market to avoid speculation and hoarding. At the same time, solutions are needed to ensure that gold businesses do not manipulate selling and buying prices, ensuring fairness for consumers. In fact, the large difference in selling and buying prices is a barrier that makes it difficult for investors to make a profit from gold in the short term.
Gold prices are currently in a period of strong and unpredictable volatility, but the potential of gold is still very large in the context of the global economic recession. If the Fed continues to cut interest rates and the BRICS increase their gold reserves, the possibility of gold prices rising again in 2024 is very high. However, investing in gold also comes with many challenges as the market can change suddenly due to US fiscal policy and other geopolitical factors.
It can be said that gold is a safe investment channel for those who want to protect their assets from economic fluctuations. However, to achieve optimal profits, investors need to understand the influencing factors and have a flexible investment strategy. For those who seek short-term profits, market instability can be an opportunity but also a great risk. On the contrary, for long-term investors, gold is still a reliable asset but requires patience and careful analysis.
Source: https://dangcongsan.vn/kinh-te/buoc-di-nao-cho-nha-dau-tu-trong-bien-dong-gia-vang-682719.html
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