Gold price drops millions of dong, experts say "don't rush to cut losses", why?

(NLDO) – In less than a week, the price of gold has dropped by 5-7 million VND/tael, causing many people who "hit the peak" of 89-90 million VND/tael to suffer heavy losses.

At the end of November 12, the price of SJC gold bars was listed by SJC Company at 80.6 million VND/tael for buying and 84.1 million VND/tael for selling, down about 1.4 million VND/tael. If calculated from the peak of SJC gold bars, each tael of gold has "evaporated" more than 6 million VND/tael.

The price of gold rings and jewelry of all kinds has continued to decrease. SJC Company traded 99.99 gold rings at 80 million VND/tael for purchase and 82.5 million VND/tael for sale, a decrease of nearly 2 million VND/tael and an "evaporation" of about 7 million VND if calculated from the historical peak.

Notably, those who buy SJC gold bars and gold rings at the price of 88-90 million VND/tael will lose 8-9 million VND/tael if they sell at this time, because the buying price of the companies is currently only 80-81 million VND/tael.

In the international market, the world gold price broke the 2,600 USD/ounce mark, falling to 2,596 USD/ounce at 4:00 p.m. Vietnam time, down a total of 80 USD/ounce compared to the previous session. The reporter had a quick talk with gold expert Tran Duy Phuong on the afternoon of November 2, analyzing the factors affecting the gold price.

Reporter: If calculated from the all-time peak of 2,790 USD/ounce, the world gold price has now "evaporated" about 200 USD/ounce, can the gold price decrease further?

Gold expert Tran Duy Phuong : Gold prices have plummeted since the results of the US presidential election, after a period of continuous increase in recent months. In my opinion, gold prices may fall further to around 2,500 - 2,550 USD/ounce before increasing again.

Giá vàng giảm hàng triệu đồng, chuyên gia nói — Gold expert Tran Duy Phuong

Gold prices have been sold off in recent days as the market expects the US to have a new President, Mr. Trump, and tensions in the Middle East to ease... Factors supporting the strong increase in gold prices have decreased.

But why do you think gold prices are unlikely to fall further?

Gold prices are adjusting after a period of rapid growth but it is difficult to fall further below the $2,500/ounce range. Because of the low interest rate environment when the US and many countries in Europe, Australia, Canada... are all on the path of reduction, which is a factor supporting the strong increase in gold prices. At the same time, Mr. Trump as US President is likely to impose tariffs on countries, including China, possibly triggering a trade war like in the previous term, also supporting the increase in gold prices.

At the same time, December is the time when Asian countries such as China, India, Thailand, Korea and even Vietnam enter the so-called wedding season, the demand for gold consumption is quite strong. When the price of gold decreased by about 200 USD/ounce in recent days, it will stimulate these countries to buy gold as in history.

Gold prices may rise again to $2,800, $2,900/ounce this year, but reaching $3,000/ounce is very difficult.

The domestic market has strange developments when trading demand suddenly quiets down, many people who "jumped to the peak" of gold prices at the 89-90 million VND/tael range will suffer heavy losses when selling at this time?

The domestic gold market has seen selling pressure overwhelm buying pressure in recent days since the world price plummeted on the day Donald Trump was elected President of the United States. This situation has continued until now, causing gold companies to continuously adjust the price of SJC gold bars and gold rings to decrease rapidly. At some points last week, gold companies had to stop buying gold when selling pressure became stronger, but now, customers can buy gold according to their needs at SJC Company instead of only being able to buy 1-2 taels as before.

Many people are worried that the gold price may drop further, so they rush to sell to take profits (after buying at 60-70 million VND/tael many months ago). There are also many people who sell at a loss when they are worried that the gold price will no longer shine.

However, at this time, if you do not really need money, you should not rush to sell, especially at a loss, because the probability of gold prices adjusting and then recovering is very high. On the contrary, at this price range of SJC gold bars and gold rings, investors can buy but do not put all the money in but divide it into many purchases to spread the risk.

Source: https://nld.com.vn/gia-vang-giam-hang-trieu-dong-chuyen-gia-noi-khoan-voi-cat-lo-vi-sao-196241112170238656.htm