Riding the peak in the gold price "storm", investors lost 1.9 million VND

Investors lost 1.9 million VND/tael after a few hours

It has been a long time since the gold market had such a “crazy” week. Last weekend, the price of SJC gold had just surpassed the 74 million VND/tael mark, but this week, after many consecutive sessions of shocking increases, there was a time when the precious metal headed towards the 78 million VND/tael mark.

Specifically, after surpassing the 75 million VND, 76 million VND and then 77 million VND/tael mark, SJC gold price has many opportunities to reach the 78 million VND/tael mark this week when on December 22, SJC gold climbed to the "peak" of 77.60 million VND/tael.

The overheating of gold prices has spurred investors to buy. According to the reporter's observations, in recent sessions at jewelry stores, customers have mainly come to buy.

gold price prediction for investors: 19 million dong, picture 1 — Riding the peak in the gold "storm", investors lost 1.9 million VND/tael in a few hours of trading. Illustrative photo

Sharing the reason for buying gold with reporters, Ms. Ngoc Thanh (Hoang Mai, Hanoi) said: “Many forecasts show that in 2024, the economy will be even more difficult. And now I have seen many difficulties. Therefore, my family decided to buy gold with the belief that in the long term, gold will increase sharply.”

However, not long after Ms. Thanh bought, the gold price reversed and dropped sharply, down to 600,000 VND/tael, back to 77 million VND/tael. In addition, the difference between the buying and selling price increased from 1 million VND/tael to 1.3 million VND/tael, so Ms. Thanh immediately suffered a huge loss of 1.9 million VND/tael.

By the morning of December 23, despite the world gold price continuing to increase sharply, the domestic gold price either remained stable or decreased slightly. Some places lost the 77 million VND/tael mark.

Currently, Doji Group is the only "gold house" that maintains the 77 million VND/tael mark when listing the price of SJC gold at: 75.70 million VND/tael - 77 million VND/tael, unchanged from the end of yesterday.

At other units, SJC gold price decreased by tens of thousands of VND/tael and lost the mark of 77 million VND/tael.

Phu Nhuan Jewelry Company – PNJ listed the price of SJC gold at: 75.75 million VND/tael – 76.95 million VND/tael. The price of SJC gold at Saigon Jewelry Company – SJC and Bao Tin Minh Chau traded at: 75.70 million VND/tael – 76.90 million VND/tael, respectively.

Non-SJC gold prices are more stable as they continue to increase slightly. The price of Thang Long Dragon gold of Bao Tin Minh Chau is listed at: 62.43 million VND/tael - 63.38 million VND/tael. The price of PNJ gold at PNJ Company is bought and sold at: 61.90 million VND/tael - 62.95 million VND/tael.

However, if they had bought gold since last weekend, investors would have reaped huge profits. After 1 week of trading, the price of SJC gold increased by 2.6 million VND/tael, equivalent to 3.5%. Minus the difference of 1.3 million VND/tael between the buying and selling prices, investors would have made a profit of 1.3 million VND/tael.

SJC gold price is record expensive compared to world gold

This week, although the world gold price increased sharply, it was still much more modest than SJC gold.

Specifically, in the last trading session of the week in the US market, gold prices increased to the highest level in more than two weeks when the dollar and US Treasury bond yields decreased due to increasing expectations that the US Federal Reserve (FED) will cut interest rates early next year.

Spot gold rose 0.4% to $2,053.14 an ounce, putting it on track for a 2% weekly gain. U.S. gold futures rose 0.7% to $2,065.0.

gold price prediction for investors worth 19 million dong image 2 — SJC gold price is about 15.8 million VND/tael more expensive than world gold. This is a record high difference during this period. Illustrative photo

At this world gold price, the converted SJC gold price is about 61.2 million VND/tael. Thus, the SJC gold price is about 15.8 million VND/tael more expensive than the world gold price. This is a record high difference during this period.

“Precious metals, including gold, are being driven higher by very strong rate cut expectations with the market pricing in a Fed rate cut in March and a total of 150 basis points by 2024,” said Tai Wong, an independent metals trader based in New York.

Traders on Friday remained bullish on the U.S. central bank starting to cut interest rates in March after government data showed price pressures continued to ease last month.

US annual inflation slowed below 3% in November and underlying price pressures continued to ease.

The dollar index hit a five-month low, making gold more attractive to foreign buyers. The benchmark 10-year bond yield was also near its lowest since July.

Gold will continue to be supported by weaker Treasury yields and the U.S. dollar index as well as concerns about an economic slowdown, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

“The technical breakout now could really push the price up to that $2,100 level. It could retest the recent contract highs,” commented Phillip Streible.

On the physical front, gold demand in India has fallen sharply due to high domestic prices.

Among other metals, silver fell 1% to $24.15 an ounce. Platinum rose 0.75% to $970.25 and palladium fell 0.9% to $1,203.11. All three metals were headed for a second straight weekly gain.

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