Regretfully accept losses despite strong gold price increase

The domestic gold price opening today's trading session (December 31) was listed by DOJI Group at 72 million VND/tael for buying and 75 million VND/tael for selling.

Compared to the closing price of last week's trading session, gold price at DOJI increased by 4 million VND/tael for buying and 1 million VND/tael for selling.

The difference between buying and selling gold prices at DOJI decreased from 6 million VND/tael last week to 3 million VND/tael.

Meanwhile, Saigon Jewelry Company listed the buying price of gold at 72 million VND/tael; the selling price is 75 million VND/tael.

Compared to the closing price of last week's trading session, the gold price at Saigon Jewelry Company SJC increased by 1 million VND/tael for both buying and selling.

The difference between buying and selling prices of SJC gold remains at 3 million VND/tael.

Gold prices are increasing, however the difference between buying and selling gold is at a very high level causing investors to suffer heavy losses after only 1 week of buying.

Specifically, if buying gold at DOJI Group on December 31, 2023 at VND 74 million/tael and selling it today (January 7, 2024), investors will lose VND 2 million/tael. Similarly, those who buy gold at Saigon Jewelry Company SJC will also lose VND 2 million/tael.

Currently, the difference between buying and selling gold in the country is considered too large. This can put buyers at risk of losing money when investing.

Domestic gold price movements last week. Unit: Million VND/tael. Graphics: Khuong Duy

The world gold price closed the trading session of the week listed on Kitco at 2,045.3 USD/ounce, down 16.9 USD/ounce compared to the closing price of the previous trading session.

World gold price developments. Unit: USD/ounce. Chart: Phan Anh

Gold Price Forecast

Gold prices stabilized above $2,000 an ounce in the first week of 2024, but continued to fluctuate as markets tried to adjust expectations about how long the US Federal Reserve (FED) would cut interest rates based on economic data releases.

After trading sideways on Monday and Tuesday, gold sold off sharply after the release of the December FOMC meeting minutes on Wednesday afternoon, which appeared to indicate the Fed was in no rush to cut interest rates. Then, on Friday morning, a stronger-than-expected U.S. Non-Farm Payrolls report sent gold to a session low below $2,025 an ounce, according to Kitco.

Kitco’s latest weekly gold survey shows that half of retail investors expect gold prices to rise next week, while two-thirds of market analysts are bullish on gold’s short-term prospects.

The survey showed that retail investors expect gold prices to trade around $2,049 an ounce next week.

However, some experts are less positive about the future of the precious metal. James Stanley, senior market strategist at Forex.com, said that gold prices will fall next week.

See more articles about gold prices on Lao Dong Newspaper here...

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