Gold prices fluctuate unpredictably.

A rather unexpected development occurred in the domestic gold market amidst a sharp decline in the price of SJC gold bars and gold rings.

At the end of November 12th, the price of SJC gold bars, as listed by Saigon Jewelry Company (SJC), was 80.6 million VND/ounce for buying and 84.1 million VND/ounce for selling, a decrease of approximately 1.4 million VND/ounce compared to the previous day. Since reaching its peak of over 90 million VND two weeks ago, each ounce of gold has "evaporated" by more than 6 million VND.

No more panic selling.

The price of 24-karat gold rings and jewelry also plummeted, falling to only 80-82.5 million VND/ounce (buy-sell), a decrease of nearly 2 million VND/ounce and a drop of over 7 million VND from its peak of nearly 90 million VND.

Notably, despite the sharp drop in gold prices, the market no longer sees the rush of people selling gold seen in previous days. Instead, gold companies and shops are quite deserted, with very few buyers. Most are anxiously awaiting further developments in world gold prices.

At the headquarters of SJC Gold Company in District 3, Ho Chi Minh City, there were only a few customers buying and selling gold. Transactions were quite quick, and there was no longer the queuing or waiting in line like in previous days. Customers could buy SJC gold bars or gold rings according to their needs at the counter, in addition to registering online on the company's website.

Some customers selling gold said they did so because they saw the price falling rapidly and needed money urgently for family matters, not because they intended to sell off their gold at a loss. Conversely, some people were buying "on the lookout," purchasing a few taels to 1-2 ounces of gold when they saw the price drop. "When the price was 90 million VND/ounce, I thought it was too high so I didn't buy. After more than a week, the price dropped to 84.5 million VND/ounce, so I decided to buy some to keep," said Ms. Thanh, holding an ounce of gold she had just bought at the SJC counter.

The SJC Gold Company headquarters was deserted on the day gold prices plummeted.

At the Phu Nhuan Jewelry Company (PNJ) branch on Hai Ba Trung Street (District 1, Ho Chi Minh City), staff reported that customer traffic was normal, with no unusual surges. There was also no rush of customers buying or selling gold.

Not only at gold companies, but also elsewhere, trading is sluggish. Walking around the gold shops in Ben Thanh Market, Le Thanh Ton Street (District 1); and Tan Dinh Market (District 1), reporters observed that the shops were quite empty. When we inquired about trading activity, an employee at a gold company jokingly said: "The price of gold is falling, nobody is buying; customers will only line up when the price rises sharply"…

It is necessary to control one's emotions.

Speaking to a reporter from the Nguoi Lao Dong newspaper, gold expert Tran Duy Phuong said that the domestic gold market experienced overwhelming selling pressure in the days leading up to the sharp drop in world gold prices on the day Donald Trump was elected President of the United States. This heavy selling pressure forced gold companies to continuously adjust the prices of SJC gold bars and gold rings downwards. At times, gold shops and companies had to stop buying due to the intense selling pressure. Currently, customers can buy gold according to their needs instead of being limited to buying only 1-2 ounces as before.

"World gold prices are predicted to fall sharply to $2,500-$2,550 per ounce following the dramatic surge of the past few months. If this prediction comes true, domestic gold prices will continue to fall. However, I predict that this correction may be short-term, while in the long term, the low interest rate environment, with the US Federal Reserve (FED) and many central banks lowering interest rates, will push gold prices back up," Mr. Phuong predicted.

Economist Dr. Nguyen Tri Hieu stated that after Donald Trump's victory in the US presidential election, the US dollar index surged, exceeding 105 points, and the financial market brightened. Following this, the Federal Reserve (FED) lowered interest rates by 0.25 percentage points to 4.5% - 4.75%. Normally, a Fed interest rate cut would lead to a decline in the US dollar index, but the market is currently experiencing the opposite trend. This is impacting gold prices. World gold prices fell immediately after the Fed lowered interest rates. "The price of SJC gold bars and gold rings also declined in line with the global trend, but this is only a short-term adjustment; the medium- to long-term trend for gold remains positive," Dr. Nguyen Tri Hieu said.

This expert predicts that world gold prices could rise back to $2,800 per ounce by the end of the year amid the Fed's interest rate cuts and the cooling of the US dollar. However, the specific fluctuations in gold prices will depend on President Trump's policies regarding the US and global economies.

"Gold prices are very difficult to predict under Mr. Trump, but before he officially enters the White House in January 2025, gold prices may rise again. In the domestic market, the price of gold bars and gold rings is influenced by world prices and gold supply. If gold supply is limited and demand remains, gold prices will continue to rise, but people need to control their emotions and avoid panicking during periods of strong price fluctuations," said Dr. Hieu.

Source: https://nld.com.vn/gia-vang-bien-dong-kho-luong-19624111221103135.htm