World plummets, domestic fluctuations slight

Domestic gold price today

Early this morning, domestic gold prices continued their series of quiet days when prices fluctuated within a narrow range. Currently, the domestic precious metal prices are listed specifically as follows:

SJC gold price in Hanoi and Da Nang is currently being bought at 66.55 million VND/tael and sold at 67.17 million VND/tael. In Ho Chi Minh City, SJC gold is still being bought at the same price as in Hanoi and Da Nang but sold at 20,000 VND lower.

DOJI brand gold price in Hanoi is listed at 66.55 million VND/tael for buying and 67.15 million VND/tael for selling. In Ho Chi Minh City, this brand gold is being bought and sold at the same price as in Hanoi.

Phu Quy SJC gold price is listed at 66.5 million VND/tael for buying and 67.1 million VND/tael for selling. PNJ gold is listed at 66.65 million VND/tael for buying and 67.25 million VND/tael for selling. Bao Tin Bao Tin Minh Chau gold is listed at 66.55 million VND/tael for buying and 67.08 million VND/tael for selling.

Domestic gold price updated at 5:30 am on May 17 as follows:

Yellow	Area	Early morning 16-5		Early morning 17-5			Difference
		Buy	Sell	Buy	Sell		Buy	Sell
		Unit of measure: Million VND/tael					Unit of measure: Thousand dong/tael
DOJI	Hanoi	66.6	67.2	66.55		67.15	-50	-50
DOJI	Ho Chi Minh City	66.6	67.2	66.55		67.15	-50	-50
Phu Quy SJC	Hanoi	66.55	67.15	66.5		67.1	-50	-50
PNJ	Ho Chi Minh City	66.6	67.2	66.65		67.25	+50	+50
PNJ	Hanoi	66.6	67.2	66.65		67.25	+50	+50
SJC	Ho Chi Minh City	66.65	66.25	66.55		67.15	-100	-100
	Hanoi	66.65	67.27	66.55		67.17	-100	-100
	Danang	66.65	67.27	66.55		67.17	-100	-100
Bao Tin Minh Chau	Nationwide	66.6	67.13	66.55		67.08	-50	-50

World gold price today

World gold prices fell sharply early this morning with spot gold falling $27.1 to $1,988.9/ounce. June gold futures last traded at $1,992.6/ounce, down $28.7 compared to early the previous day.

The world's yellow metal fell as recent data showed a weaker Chinese economy. This has increased concerns about consumer and commercial demand for the precious metal. Specifically, industrial output in April increased 5.6% compared to the same period last year. This is lower than economists' expectations of 10.9%. Retail sales increased 18.4%, lower than economists' forecast of 21%. Fixed asset investment increased 4.7% compared to expectations of 5.2%. The index increased 5.1% last month.

Gold was also under pressure as markets awaited news on the US debt ceiling negotiations. Speaking at a conference on Tuesday, US Treasury Secretary Janet Yellen said a default in the US would create an economic and financial disaster. "A default would destroy the foundation on which our financial system is built. It is very possible that we would see a breakdown in financial markets."

The US Treasury Secretary described the recession as potentially as severe as the Great Depression. More than 8 million Americans are at risk of losing their jobs. Business and consumer confidence has been significantly affected. The value of the stock market has fallen by about 45%. She also said that the US is paying a heavy price for not raising the debt ceiling.

All eyes are now on a second meeting between US President Joe Biden and House Speaker Kevin McCarthy to see if there is any new progress in trying to raise the US government's $31.4 trillion debt ceiling to prevent a catastrophic default.

Despite the fall in gold prices, experts say the metal is being supported by safe-haven demand in the long term. There are clear signs that investors are turning to gold as a hedge against debt defaults, according to a new Bloomberg survey. Gold is the top choice for investors, with more than half of those surveyed choosing the precious metal as a hedge against debt-ceiling turmoil.

The view that gold is the best long-term investment has increased from 15% in 2022 to 26% - the highest level since 2012. Gold has surpassed stocks to become the second most popular investment and is close to the number one spot, with more than a quarter of Americans considering gold the best long-term asset.

A key new driver for gold this year has been demand from exchange-traded funds as they finally recognise the value of the precious metal amid renewed recession fears, according to Australia and New Zealand Banking Group (ANZ).

ANZ forecasts gold will hit $2,100 an ounce by the end of this year and $2,200 in the second half of next year. Any dip in prices would be seen as a buying opportunity, the bank said.

With domestic gold prices fluctuating slightly and world gold prices listed at Kitco at 1,988.9 USD/ounce (equivalent to nearly 56.6 million VND/tael if converted at Vietcombank exchange rate, excluding taxes and fees), the difference between domestic and world gold prices is currently over 10 million VND/tael.

TRAN HOAI

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