SJC gold bar price "dances", world gold hits 2-week bottom, what's happening?

Gold price today November 8, 2023, SJC gold bar price suddenly increased sharply to nearly 70 million VND/tael, after continuous fluctuations. World gold price fell to the lowest level in 2 weeks due to the increase of USD, while demand for safe assets seemed to slow down.

LIVE UPDATE TABLE OF GOLD PRICE TODAY 11/8 AND EXCHANGE RATE TODAY 11/8

1. PNJ - Updated: November 7, 2023 10:30 PM - Website supply time - ▼ / ▲ Compared to yesterday.
Type	Buy	Sell out
HCMC - PNJ	58,950	59,950
HCMC - SJC	68,900 ▲300K	69,900 ▼100K
Hanoi - PNJ	58,950	59,950
Hanoi - SJC	68,900 ▲300K	69,900 ▼100K
Da Nang - PNJ	58,950	59,950
Da Nang - SJC	68,900 ▲300K	69,900 ▼100K
Western Region - PNJ	58,950	59,950
Western Region - SJC	68,800 ▲400K	69,850 ▲50K
Jewelry gold price - PNJ rings (24K)	58,950	59,950
Jewelry gold price - 24K jewelry	58,800	59,600
Jewelry gold price - 18K jewelry	43,450	44,850
Jewelry Gold Price - 14K Jewelry	33,620	35,020
Jewelry gold price - 10K jewelry	23,540	24,940

Domestic gold prices have been continuously adjusted up and down in the past two days with large amplitudes within the session. Yesterday, November 6, each tael of SJC gold bar lost up to 2 million VND at one point before bouncing back.

On the morning of November 7, the price of SJC gold bars decreased by half a million VND compared to the closing price yesterday afternoon, but by the end of the session, it suddenly increased again to 600,000 VND/tael, returning to nearly 70 million VND per tael.

Specifically, the price of SJC gold bars traded at Saigon Jewelry Company and Bao Tin Minh Chau system both increased by VND500,000/tael for selling, while the price of buying increased by VND500,000/tael and VND550,000/tael, respectively.

At Doji Group, domestic gold price at the end of the session increased by 600,000 VND/tael for buying and 400,000 VND/tael for selling compared to the beginning of the session on November 7.

This unusual movement in gold bar prices occurred at a time when there were concerns that gold bar trading would be restricted under the new regulations of Circular 12 issued by the State Bank in mid-October. This Circular stipulates that the Foreign Exchange Reserve Management Department participates in gold bar bidding processes between the State Bank and credit institutions.

Unlike gold bars, the price of gold rings fluctuates less, trading in the range of 58.65 - 59.85 million VND/tael.

According to the World & Vietnam Newspaper , at 8:00 p.m. on November 7 (Vietnam time), the world gold price traded on Kitco floor was at 1,966.2 - 1,967.2 USD/ounce, continuing to decrease by 11.3 USD/ounce compared to the previous session.

Gold prices continued to fall due to the pressure of the recovery of US stocks and the conflict in the Middle East seemed to ease, as the United Nations is looking for ways to make the involved parties implement a ceasefire in the Gaza Strip. In addition, the US dollar increased 0.3% after hitting a 6-week low in the previous session, making gold more expensive for buyers with other currencies.

Gold price today November 8, 2023: SJC gold bar price 'dances', world gold hits 2-week bottom, what's happening? (Source: Bloomberg)

Summary of SJC gold prices at major domestic trading brands at the closing time of November 7:

Saigon Jewelry Company listed the price of SJC gold at 68.90 - 69.92 million VND/tael.

Doji Group currently lists SJC gold price at: 68.85 - 69.85 million VND/tael.

Phu Quy Group listed at: 68.85 - 69.85 million VND/tael.

PNJ system listed at: 68.90 - 69.90 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at: 69.00 - 69.90 million VND/tael; Rong Thang Long gold brand is traded at 59.13 - 60.08 million VND/tael; jewelry gold price is traded at 58.65 - 59.85 million VND/tael.

Converted according to the bank USD exchange rate, the world gold price is equivalent to 58.33 million VND/tael (excluding taxes and fees), lower than the domestic gold price by about 11.09 million VND/tael. The difference between the domestic ring price and the world price is nearly 1.6 million VND/tael.

Gold price facing disadvantage?

World gold prices are facing a disadvantage when the market believes that the Fed will keep interest rates unchanged for the second consecutive time in this tightening cycle, but Fed Chairman Jerome Powell still maintains a hawkish stance, leaving open the possibility of another interest rate hike in the near future.

The story is still about geopolitical risk and the risk appetite seems to have come down a bit for gold and the price action is reflecting that, said Kyle Rodda, financial markets analyst at Capital.com .

Prime Minister Benjamin Netanyahu said Israel would consider a tactical pause in fighting in Gaza to facilitate aid or the release of hostages, but again rejected calls for a general ceasefire despite growing international pressure.

David Morrison, Senior Market Analyst at Trade Nation , said the gold market is looking for a new catalyst, following quiet trading late last week.

Meanwhile, Saxo Bank commodity strategist Ole Hansen said that after a strong increase in a short period of time, the gold market is showing signs of slowing down. Investors are cautious, so the market needs to be consolidated.

Forexlive currency strategist Adam Button said Friday's weak US non-farm payrolls report was a sign that the Fed's rate-hike cycle appears to be over. So rather than worrying about the Israel-Hamas conflict, the gold market is now looking at when the Fed will cut rates. The catalyst for gold's multi-year rally is lower interest rates and a weak dollar, he said.

However, for gold to move sustainably above $2,000 an ounce, it may require a clearer signal from the Fed that a cut is imminent and a return of investors to ETFs, which have seen outflows of more than 200 tonnes so far this year. In addition, increased and sustained central bank gold purchases are another factor supporting gold prices.

Central banks are expected to be on a buying spree this year, although they are not expected to reach last year’s record levels, commodity analysts at Heraeus Precious Metals said. However, if the fourth quarter is as strong as the previous one, global central bank net purchases could easily surpass last year’s record of 1,082 tonnes.

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