Deep decrease, SJC gold price still becomes expensive

SJC gold price becomes expensive again

In the first few sessions of November, the price of SJC gold suddenly became "cheaper" when the price of SJC gold fell deeper than the world gold price, causing the gap between the two prices to fall to its lowest level in 2023. The price of SJC gold is only about 10.5 million VND/tael more expensive than the world gold price. Previously, this gap was commonly at 14 million VND/tael.

However, in the session of November 9, although the price of SJC gold decreased quite sharply, the speed of its “fall” was still much more modest than the world price, so the gap between the two markets widened. In other words, SJC gold became more expensive.

Specifically, on the morning of November 9, at Doji Group, SJC gold price was listed at: 69.05 million VND/tael - 70.15 million VND/tael, down 200,000 VND/tael, equivalent to 0.28% compared to the end of yesterday.

discount after gold price sjc support land use right image 1 — After a few days of being “cheap”, the price of SJC gold has become “expensive” again despite a sharp drop. The reason is that the world gold price has “plummeted” too sharply. Illustrative photo

SJC gold price at Bao Tin Minh Chau Jewelry Company is being bought and sold at: 69.13 million VND/tael - 70.08 million VND/tael, down 320,000 VND/tael for buying (equivalent to 0.46%) and down 200,000 VND/tael (equivalent to 0.28%) for selling.

SJC gold price at Phu Nhuan Jewelry Company - PNJ and Saigon Jewelry Company - SJC respectively traded at: 69.20 million VND/tael - 70.20 million VND/tael and 69.10 million VND/tael - 70.10 million VND/tael.

It can be seen that at some companies, the difference between the buying and selling price of SJC gold is pushed to a very high level, 1 million VND/tael.

Meanwhile, the price of non-SJC gold decreased at a slower rate than SJC gold.

At Bao Tin Minh Chau, the price of Thang Long Dragon gold was traded at: 58.93 million VND/tael - 59.88 million VND/tael, down 100,000 VND/tael. The price of PNJ gold at PNJ Company dropped more shockingly, falling to: 58.50 million VND/tael - 59.50 million VND/tael.

World gold price drops 3.6 times faster than SJC gold

SJC gold price is falling quite strongly but the "regression" speed is still much more modest than world gold price.

Last night, in the US market, the world gold price recorded a third consecutive decline as investors looked for new signals on the US central bank's interest rate stance, while palladium hit a five-year low.

Spot gold fell 1% to $1,947.89 an ounce, its biggest daily drop since Oct. 2. U.S. gold futures fell 0.8% to $1,957.80. Silver fell 0.5% to $22.52 an ounce.

It can be seen that the world gold price has a sharp decrease rate 3.6 times that of SJC gold. At the gold price level, SJC gold price is about 12.55 million VND/tael. The common figure in the last few sessions is only 10.50 million VND/tael. Thus, the price of SJC gold is noticeably "more expensive" compared to the world gold price.

“Traders will start looking at economic data and potential actions from the U.S. central bank,” said Daniel Ghali, commodity strategist at TD Securities, adding that gold will react based on whatever market data comes out.

“It is difficult to find a catalyst for further gold gains without a significant deterioration in the data.”

A series of US Federal Reserve (FED) officials on Tuesday maintained a balanced view on the central bank's next decision, but noted that they will focus on more economic data and the impact of higher long-term bond yields.

Fed Chairman Jerome Powell will speak at 2 p.m. on Thursday.

Gold is highly sensitive to rising US interest rates, as they increase the opportunity cost of holding non-yielding assets.

“Gold is at risk of the gains from the Israel-Hamas war being eroded,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago, adding that if you see the conflict escalate, gold could get some momentum.

Bullion has risen more than 7% in October as conflict in the Middle East boosted safe-haven demand.

Elsewhere, palladium hit its lowest since 2018 at $1,007.73 earlier in the session and fell 0.5% to $1,050.06. Platinum fell 2.8% to $866.31.

In the palladium market, “demand is falling at a fairly rapid pace due to smaller internal combustion engine production and it is also being replaced by platinum in automotive catalyst components,” Ghali added.

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