Gold bar price "dancing"

At 2:00 p.m. this afternoon, the price of gold bars at Saigon Jewelry Company (SJC) was anchored at 87.5 - 90 million VND, down 500,000 VND compared to the price list at noon today.

Previously, the opening price of SJC gold bars had dropped by 3.3 million VND for buying and 2.8 million VND for selling, down to 85.5 - 88.5 million VND per tael. The buying pressure then pushed the price of gold bars up by 12 noon today, quickly increasing by 2 million VND, up to 88 - 90.5 million VND. Compared to the peak set on May 10, each tael of gold bars this morning at times decreased by nearly 4 million VND, after the Government requested an immediate inspection of the gold market.

Meanwhile, the price of plain gold rings and jewelry at businesses this morning remained stable around 76.5 million VND, following the development of precious metals on the international market.

At the opening session of the week, the world gold price moved sideways around 2,360 USD per ounce, converted according to Vietcombank's selling rate, equivalent to 72.5 million VND per tael.

The plunge in gold bars this morning has narrowed the gap with world prices from nearly 20 million VND at the end of last week to 16-18 million VND per tael.

For a long time, the price of SJC gold bars has fluctuated unpredictably and often out of sync with the world. A constant supply of gold bars has been circulating on the market for the past decade, in people's safes or being bought and sold. Only recently, through bidding, has the supply been increased, but not significantly.

How much more expensive gold bars are compared to the world price, according to experts, depends on two factors: domestic supply and demand. The supply side depends on how much the State Bank increases supply to the market. The demand side depends on people's psychology and expectations. Gold bars are an investment channel with a strong psychological factor due to the scarcity of supply.

Yesterday, the State Bank said it will continue to bid to supply volume and frequency appropriate to market demand, and at the same time advised people to be cautious when trading to avoid risks.

HA (according to VnE)

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