Strange sight on Hanoi's 'gold street'

TPO - Contrary to the usual crowds and long queues that occurred whenever gold prices fluctuated sharply, Tran Nhan Tong gold street (Hanoi) was unusually deserted on the afternoon of May 22nd, even though gold prices had fallen to their lowest level since the beginning of the year. Gone was the rush to buy; many people now appeared cautious, even indifferent, to the precious metal.

This afternoon, gold trading businesses simultaneously adjusted the price of gold bars and gold rings sharply downwards to 162 million VND/ounce. Compared to the beginning of the year, the price of gold has "evaporated" by nearly 29 million VND/ounce, marking the deepest drop so far this year.

However, surprisingly, the number of customers on Hanoi's most famous "gold street" was quite sparse. At many large stores on Tran Nhan Tong Street, there was no longer the scene of people crowding the sidewalks or taking numbers to wait in line to buy gold like during previous price surges. Inside the stores, employees mainly sat advising a few individual customers or arranging goods.

Gold shops no longer have long lines of people waiting to buy gold.

An employee at a gold shop on Tran Nhan Tong Street said that the number of customers has decreased significantly compared to the period when gold prices were soaring last month.

"Previously, whenever prices fluctuated, there would be a huge influx of customers; on some days, we had to issue numbered tickets and limit the number of items sold each day. But these past few days, even though prices have dropped sharply, the number of buyers hasn't increased as expected," said a gold shop employee.

According to observations, most customers visiting the store today were primarily inquiring about prices and checking market trends rather than rushing to make a purchase. Many said they were still waiting for prices to fall further after the recent series of consecutive drops in gold prices.

Ms. Minh Anh (Hai Ba Trung ward, Hanoi) shared that she has been monitoring gold prices for the past week but hasn't decided to buy yet. "Previously, I would rush to buy whenever I saw gold prices drop because I was afraid they would rise again. But now the price is fluctuating so erratically, I want to wait and see," Ms. Minh Anh said.

The jewelry store had no customers.

Many investors are also showing caution after the period when gold prices rose too sharply and then reversed rapidly. Many who bought gold at high prices are still holding onto their losses, making the market sentiment more cautious.

One gold business suggested that weak purchasing power also stems from the relatively high spread between buying and selling prices, increasing the risk for short-term speculators. Amidst the volatile gold prices driven by global market trends, many are choosing to observe from the sidelines rather than rush in to buy at the bottom.

Furthermore, the availability of more attractive interest rates on savings accounts recently has also caused money to be dispersed instead of concentrated in gold as before. After a long period of gold continuously reaching record highs, the "buy now, win" mentality seems to have disappeared from the market.

Nevertheless, according to gold dealers, the demand for long-term gold hoarding among the public remains high. However, buyers now tend to consider their options more carefully, no longer following the crowd mentality whenever prices fluctuate.

The unexpected quietness on Tran Nhan Tong gold street amidst the sharp drop in gold prices shows that investor sentiment has changed significantly after the erratic fluctuations of the market in recent times. For many, gold is no longer the "surefire safe haven" it once was, but has become an asset that requires careful consideration before investing.

Source: https://tienphong.vn/canh-tuong-la-tren-pho-vang-ha-noi-post1845454.tpo