Gold price skyrocketed to over 85.5 million VND/tael

On April 15, domestic gold prices reversed and increased after 2 sessions of decline. Early this afternoon, Saigon Jewelry Company listed the price of SJC gold at 83.3 - 85.52 million VND/tael (buy - sell), an increase of 3 million VND/tael for buying and 2.6 million VND for selling compared to the closing price yesterday.

Gold price skyrocketed to over 85.5 million VND/tael (Source: SJC)

Doji Gold and Gemstone Group listed the price of SJC gold bars at 83-85.4 million VND/tael (buy - sell), an increase of 2.4 million VND/tael for buying and 2.3 million VND/tael for selling compared to yesterday's closing price.

At the same time, Bao Tin Minh Chau Gold and Silver Company listed the price of gold rings at 75.48 - 77.18 million VND/tael (buy - sell), an increase of 1 million VND/tael for buying and an increase of 800 thousand VND/tael for selling compared to the closing price yesterday.

Doji Gold and Gemstone Group listed the price of gold rings at 75.55 - 77.45 million VND/tael (buy - sell), an increase of 1 million VND/tael for buying and an increase of 800 thousand VND/tael for selling compared to the closing price yesterday.

At the same time, the world gold price on Kitco was trading around 2,358 USD/ounce. Compared to the converted world gold price, the retail price of SJC gold bars is 12.2 million VND/tael higher, while the price of gold rings is 5.2 million VND/tael higher.

Gold's rally is being somewhat hampered by the prospect of the US Federal Reserve keeping interest rates higher for longer as US inflation is hotter than expected, as well as the rising trend of the US dollar and US Treasury yields.

Along with gold, the US dollar is being bought by investors to hedge against geopolitical risks. Last week, the Dollar Index increased by 1.7%, the strongest weekly increase since September 2022.

Although gold failed to hold above $2,400 an ounce, analysts noted that gold remained relatively strong. Specifically, the market began to price in the possibility of a rate cut in June after inflation was higher than expected in March. According to CME, the market sees only a 27% chance of a Fed rate cut in June, down from 50% last week and 68% a month ago.

However, analysts note that while the Fed may delay the start of its easing cycle, it is unlikely to raise rates again, meaning real interest rates could still fall – a positive environment for gold.

Last weekend, the State Bank announced that it would increase the supply of gold bars to address the high difference between domestic prices and world prices. Previously, the Prime Minister also requested the State Bank of Vietnam to preside over and coordinate with relevant agencies to promptly implement measures and tools in accordance with legal regulations, especially Decree 24, to closely, effectively and promptly manage and operate the supply for the production of gold bars and gold jewelry, in accordance with market developments, ensuring that activities and transactions on the market are strictly managed and controlled with existing tools, without affecting the exchange rate, state foreign exchange reserves, and without allowing profiteering or speculation.

Experts say that the State Bank's actions will cause domestic gold prices to cool down quickly, after a long period of sharp increases, continuously breaking historical records. However, domestic gold prices will still increase if world gold prices increase and vice versa. Because world gold prices affect about 80% of domestic gold prices. The rest are other factors such as policies, market characteristics, market psychology.../.

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