Gold prices have dropped by millions of dong, and experts say "don't rush to cut your losses." Why?

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

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

The price of gold rings and other gold jewelry continues to fall. SJC Company is trading 99.99% pure gold rings at 80 million VND/ounce for buying and 82.5 million VND/ounce for selling, a decrease of nearly 2 million VND/ounce and a drop of approximately 7 million VND from its historical peak.

Notably, those who bought SJC gold bars and gold rings at around 88-90 million VND/ounce would lose 8-9 million VND/ounce if they sold them now. This is because the buying price offered by companies is currently only 80-81 million VND/ounce.

On the international market, the price of gold broke below the $2,600/ounce mark, falling to $2,596/ounce at 4 PM Vietnam time, a total decrease of $80/ounce compared to the previous session. A reporter had a quick exchange with gold expert Tran Duy Phuong on the afternoon of November 2nd, analyzing the factors impacting gold prices.

Reporter: If we consider the all-time high of $2,790 per ounce, the current world gold price has "evaporated" by about $200 per ounce. Could the price of gold fall further?

Gold expert Tran Duy Phuong : Gold prices have plummeted since the results of the US presidential election, after a period of continuous rapid increases over the past several months. In my opinion, gold prices could fall further to around $2,500 – $2,550 per ounce before rising 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 anticipates a new US president, Donald Trump, and an easing of tensions in the Middle East… The factors supporting a sharp rise in gold prices have diminished.

But why does he think the price of gold is unlikely to fall much further?

Gold prices are correcting after a period of rapid increase, but are unlikely to fall much further below the $2,500/ounce mark. This is due to the low interest rate environment, with the US and many countries in Europe, Australia, Canada, etc., all on track to lower interest rates, which has been a factor supporting strong gold price increases. At the same time, the possibility of Trump imposing tariffs on countries, including China, potentially leading to a trade war similar to his previous term as US President, also supports the upward trend in gold prices.

At the same time, December each year is the wedding season in Asian countries such as China, India, Thailand, South Korea, and even Vietnam, when demand for gold is quite strong. The recent drop in gold prices by around $200 per ounce will likely stimulate these countries to buy gold, as has happened in history.

Gold prices could rebound to $2,800 or $2,900 per ounce this year, but reaching $3,000 per ounce will be very difficult.

The domestic market is experiencing unusual developments as trading demand has suddenly slowed down. Many people who bought gold at its peak, around 89-90 million VND/ounce, will suffer heavy losses if they sell now.

In recent days, the domestic gold market has seen selling pressure overwhelming buying pressure since global prices plummeted on the day Donald Trump was elected President of the United States. This trend has continued to the present, forcing gold companies to constantly adjust the prices of SJC gold bars and gold rings downwards. At times last week, gold companies had to stop buying gold due to strong selling pressure, but currently, customers can buy gold according to their needs at SJC Company instead of being limited to buying only 1-2 ounces as before.

Many people are worried that gold prices may fall further, so they are rushing to sell to lock in profits (after having bought at around 60-70 million VND/ounce months ago). There are also quite a few people selling to cut their losses, fearing that gold prices will no longer shine.

However, at this time, if you don't really need the money, you shouldn't rush to sell, especially at a loss, because the probability of gold prices correcting and then recovering is very high. Conversely, at this price range for SJC gold bars and gold rings, investors can buy, but not all at once; instead, they can divide their purchases into multiple installments to diversify risk.

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