“Ignoring” the “fall” of world gold, SJC gold becomes expensive

SJC gold price is expensive again

At Bao Tin Minh Chau Jewelry Company, SJC gold price is traded at: 66.47 million VND/tael - 67.03 million VND/tael, down 100,000 VND/tael for buying and down 90,000 VND/tael compared to the end of yesterday.

Saigon Jewelry Company – SJC adjusted the price of SJC gold to decrease much more slowly. SJC gold price is traded at 66.50 million VND/tael – 67.10 million VND/tael, down 50,000 VND/tael.

Phu Nhuan Jewelry Company – PNJ also listed the price of SJC gold at: 66.50 million VND/tael – 67.10 million VND/tael. At Doji Group, the buying and selling price of SJC gold is: 66.45 million VND/tael – 67.05 million VND/tael.

The world's gold market has become a global gold market. SJC gold has become a global gold market. — Despite the sharp fall in world gold prices, SJC gold prices are slowly going down, causing the gap between the two markets to grow larger. Illustrative photo

Non-SJC gold prices have a much stronger decline. At Bao Tin Minh Chau, the price of Thang Long Dragon gold decreased by VND300,000/tael to VND55.77 million/tael - VND56.72 million/tael. At PNJ Company, the price of PNJ gold also decreased sharply to VND55.80 million/tael - VND56.95 million/tael.

SJC gold price slightly decreased while world gold price is going through “plummeting” days. In recent sessions, world gold price has continuously “fallen freely” and moved away from the 2,000 USD/ounce mark.

At the moment, in the Asian market, the world gold price is trading at 1,956.1 USD/ounce. At one point, this precious metal almost broke the 1,950 USD/ounce mark. Previously, last night, in the US market, the spot gold price fell sharply by 1.3%. The US gold futures contract was 1.2% lower at 1,959.4 USD.

At the world gold price of 1,956.1 USD/ounce, the converted SJC gold price is about 55.26 million VND/tael. Thus, the SJC gold price is 11.8 million VND/tael more expensive than the world gold price. This is the highest difference between the two markets during this time.

Gold may continue to “fall”

SJC gold price only decreased slightly in the context of world gold price continuously decreasing and still at risk of "falling" further.

The main reason for the recent decline in global gold prices was that stronger economic data from the US added to expectations that the US Federal Reserve (FED) could ease interest rate hikes, with bullion also pressured by optimism over a debt ceiling deal.

The number of new U.S. jobless claims fell less than expected last week, accompanied by a smaller decline in the Philadelphia Federal Reserve's business index.

Along with a relatively strong jobs market, some optimism about debt ceiling talks has also strengthened the dollar and supported stocks, reducing safe-haven demand a bit, said David Meger, director of metals trading at High Ridge Futures.

“We are not as bullish on the gold market as we have been in the last few months,” David Meger said, downplaying his optimism on the precious metal.

Pressured gold, Wall Street edged higher and the dollar and 10-year Treasury yields rose to multi-week highs on economic data.

Markets are now pricing in about a 20% chance of another rate hike in June, compared with 20% bets for a cut about a month ago.

Non-yielding gold bullion is hurt as higher interest rates boost returns from competing assets such as bonds.

Dallas Fed President Lorie Logan said inflation has not cooled fast enough to allow the Fed to pause rate hikes in June, while Fed Governor Philip Jefferson said it was too early to assess the full impact of the rapid rate hikes so far.

Both sit on the Fed which sets monetary policy.

“Gold’s failure to hold technical support at the 50-day moving average is likely to encourage further tests of the bearish trend,” said independent analyst Ross Norman.

Silver fell 1.3% to $23.4624 an ounce, platinum fell about 1.7% to $1,050.4442 while palladium also fell 1.4% to $1,466.1979.

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