Nghe An gold market is quiet before 'G' hour

bidding

At the end of last week's trading session, gold prices continued to increase sharply. Photo: Thanh Phuc

On the morning of April 21, closing the trading session last week, the gold price continued to increase slightly. Specifically, gold bars were bought by Saigon Jewelry Company - SJC at 82 million VND/tael and sold at 84 million VND/tael. Compared to the end of last week, each tael of SJC gold bar increased by 1.4 million VND in buying price and increased by 900,000 VND in selling price. The above uneven increase caused the difference between buying and selling price of SJC gold bars to decrease to 2 million VND/tael instead of 2.5 million VND as last week.

Similarly, SJC bought 9999 gold rings for 74.6 million VND and sold for 76.7 million VND, an increase of 300,000 VND in buying price and 500,000 VND in selling price. This pushed the difference between buying and selling price of SJC gold rings to 2.1 million VND/tael instead of only 1.9 million VND/tael as at the end of last week.

In Nghe An , transactions are quite quiet. Photo: TP

In Nghe An, for the past 3 consecutive days, many gold shops have not posted gold prices on electronic boards, but only announced the prices when customers asked for transactions. At some reputable gold and silver businesses, the listed prices on the morning of April 21 were as follows: SJC gold bars were bought at 81.7 million VND/tael and sold at 84.3 million VND/tael; plain gold rings were 73.5 million VND/tael for buying and 78 million VND/tael for selling.

According to records, in recent days, gold transactions in Nghe An have been quite quiet in both buying and selling directions, especially after the information that the State Bank will organize a gold bar auction tomorrow (April 22). The State's organization of gold bar auctions is said to have two purposes: to supplement the market supply, stabilize the market and cool down the gold price.

Many people came to check the gold price before the information that the State Bank will organize a gold bar auction tomorrow, April 22. Photo: TP

At the same time, the gap between domestic gold prices and world gold prices is narrowed. Many people predict that the price of gold bars will decrease when the State Bank organizes an auction, but in fact, at the end of this week's trading session, the price of gold bars still increased sharply.

Mr. Tran Tu Hai, a long-time gold investor in Vinh city, said: “At this time, I am not selling or buying gold for investment. I am waiting to see the developments after tomorrow's auction. However, I think it is difficult for the price of gold bars to decrease significantly when the State Bank organizes an auction. Therefore, those who are investing in gold bars or hoarding gold bars should not worry about the fluctuation of gold prices.”

At gold shops in recent days, people mainly come to consult gold prices or buy a few taels when needed. The number of people buying gold for investment or storage at this time is almost non-existent.

Gold transactions have almost stopped in both buying and selling directions. Photo: TP

Ms. Trinh Ngoc Anh, an employee of a gold and silver business on Cao Thang Street (Vinh City) said: "Up to now, gold has had its 5th consecutive week of price increase. Although, at one point, the gold price plummeted, it quickly recovered to its high level. Even with the price of SJC gold bars, despite the information that the State Bank is about to auction 16,800 taels of gold to increase supply to the market early next week, the gold price still increased sharply.

Domestic gold prices increased due to the influence of world gold prices. During the week, there was a time when gold prices exceeded 2,400 USD/ounce. And the current gold price is also at the highest level in history. This is a sensitive time for the gold market, so both people and gold and silver businesses are "holding their breath" to monitor gold developments, all transactions seem to be stagnant.

According to predictions, gold prices may cool down after tomorrow's auction but are unlikely to drop much. Photo: TP

On April 22, the State Bank will bid for 16,800 taels of SJC gold bars with a deposit price of 81.8 million VND/tael. Many predict that businesses will bid and win at 82 million VND/tael. This will not cool down the market immediately because the amount of gold auctioned is not much, not to mention the bidding price is close to the market price. If the gold price is to decrease further, the State Bank must organize about 10 auctions with a similar amount of gold. Accordingly, the domestic SJC gold price will gradually fall to 76-77 million VND/tael. When the difference with the world price is about 4-5 million VND/tael, the State Bank will not need to intervene.

Source: https://baonghean.vn/thi-truong-vang-nghe-an-im-ang-truoc-gio-g-post288147.html