Gold prices increase sharply in the first quarter of 2024, experts explain the reason

According to a survey by Cong Thuong Newspaper at 4:00 p.m. on March 31, 2024, the price of SJC gold bars was fixed at 78.3 million VND/tael for buying and 80.8 million VND/tael for selling. Compared to the beginning of the week, each tael of SJC gold bar increased by 300,000 VND for buying and increased by 500,000 VND for selling.

Compared to the beginning of the year, the price of SJC gold has increased by 7.8 million VND/tael for buying and 7.3 million VND/tael for selling. The difference between the buying and selling prices of SJC gold bars has increased to 2.5 million VND/tael, 200,000 VND/tael higher than last week.

Compared to the early morning of the same day, the selling price of SJC gold bars at SJC remained the same and the buying price remained the same. If converted according to Vietcombank exchange rate (excluding taxes and fees), the difference between domestic and world gold prices is about 14 million VND/tael.

Gold price of Saigon Jewelry Company Limited - SJC at 2:00 p.m. on March 31, 2024

At 4 p.m. the same day, the price of 9999 SJC gold rings was bought at 69.2 million VND and sold at 70.45 million VND, an increase of 1.4 million VND for buying and 1.35 million VND for selling after a week. In the first 3 months of this year, each tael of 9999 SJC gold rings increased by 7.4 - 7.45 million VND.

Explaining the strong increase in gold prices in recent times, economic experts analyzed that for the gold market, prices will increase sharply if the market has low liquidity, meaning there is a lot of demand and little supply. In the recent period, the strong fluctuations in gold prices were determined by the sudden increase in demand but the liquidity and transactions of SJC gold in the market were low.

"When managing the gold market, it is necessary to manage the psychology of buyers, from which we will know how to behave towards gold prices," an expert commented.

According to the assessment, the current gold price in Vietnam, especially gold bars, is quite far from the world gold price due to the scarcity of gold bars. Abolishing the monopoly on gold bars may help the gold production and trading activities become more orderly and the price of gold bars in Vietnam will be closer to the average price of the world.

In the first quarter of 2024, domestic and world gold prices both tend to increase.

Meanwhile, the world gold price also fluctuated strongly, continuously setting new all-time highs. The gold price on the Kitco floor closed the week at 2,233 USD/ounce. The gold futures price for delivery in April 2024 on the Comex floor in New York traded at 2,234 USD/ounce. The world gold market in some countries is on holiday. In March, the world gold price continuously set new records. The world gold price increased by 9% in March and increased by 8% in the first quarter of 2024.

Gold is arguably the ultimate safe haven asset in times of uncertainty. Its recent surge to an all-time high has excited longtime holders of the precious metal as their faith in the asset has been validated. As younger investors start to see their wealth grow, it is increasingly important to understand why gold is a strategic asset, especially its role as a safe haven in times of economic uncertainty.

Gold prices could rise further if the market expects a deeper Fed rate cut cycle, said Daniel Ghali, an expert at investment bank TD Securities.

“Gold prices are rising due to continued geopolitical tensions globally, which could prompt investors to turn to gold as a safe haven,” said Everett Millman, chief market analyst at precious metals trading firm Gainesville Coins.

Source: https://congthuong.vn/gia-vang-tang-manh-trong-quy-12024-chuyen-gia-ly-giai-nguyen-nhan-311973.html