SJC gold prices are skyrocketing.

Last week, global gold prices continuously declined, recording their worst week in two months. Despite this, gold prices still held above the important $1,900/ounce mark. However, despite the pessimistic global gold market, SJC gold prices still edged up slightly.

This week, the paradox has intensified. While world gold prices continue to fall sharply and have breached the crucial $1,900/ounce mark, SJC gold prices have risen quite strongly and are heading towards a very high of 68 million VND/ounce. SJC gold is experiencing an "overpriced" situation.

SJC gold prices are "overpriced," continuing to rise despite a sharp drop in global gold prices. (Illustrative image)

World gold prices continue to hit new lows.

Gold was little changed on Friday, but bullion is certain to fall for the third consecutive week as recent positive US economic data increases the likelihood that interest rates will remain higher for longer.

Spot gold was stable at $1,887.79 per ounce, down 1.4% this week. US gold futures rose 0.1% to $1,916.50.

Phillip Streible, chief market strategist at Blue Line Futures in Chicago, said: “Gold struggles to compete with instruments offering 4-5% yields, such as bonds, while gold offers no yield in comparison.”

"It doesn't seem like an ideal asset class in the current environment," commented Phillip Streible.

“Gold may continue to struggle to attract investor demand until something happens, through a credit event, a weaker dollar, or the belief that the Federal Open Market Committee (FOMC) has shifted its focus to cutting interest rates,” commented Ole Hansen, head of commodity strategy at Saxo Bank.

Traders expect the US Federal Reserve (FED) to keep interest rates in the 5.25%-5.5% range until 2024, according to CME's Fedwatch tool, while awaiting guidance from the Jackson Hole summit next week.

The premium for physical gold in China rose to its highest level since December 2016 this week as economic concerns fueled renewed safe-haven demand.

Strategists at Macquarie said: “We still expect deflation and rising unemployment to lead to policy easing that will support gold,” adding that there is significant support around the $1,840/ounce level for gold prices.

SJC gold prices are skyrocketing.

While pessimism prevails in the global gold market, domestically, SJC gold prices are soaring. After a week of trading, while world gold prices fell by about 1.4%, SJC gold prices increased by about 0.4%.

Currently, Bao Tin Minh Chau Gold and Gemstone Company is listing SJC gold prices at: 67.10 million VND/ounce – 67.70 million VND/ounce, an increase of 250,000 VND/ounce (equivalent to 0.4%) for the buying price and an increase of 220,000 VND/ounce (equivalent to 0.33%) compared to the end of last week.

The SJC gold prices at Phu Nhuan Jewelry Company (PNJ) and Saigon Jewelry Company (SCJ) closed the week at VND 67.05 million/ounce - VND 67.65 million/ounce and VND 67 million/ounce - VND 67.70 million/ounce respectively.

At Doji Group, SJC gold has the highest selling price (67.75 million VND/ounce) but the lowest buying price (66.95 million VND/ounce). The difference between the buying and selling price at Doji is as much as 800,000 VND/ounce.

The disparity between the two markets makes SJC gold significantly more expensive than world gold. Currently, SJC gold is more than 13 million VND/ounce more expensive than world gold. This figure was commonly around 11 million VND/ounce in 2023.

Meanwhile, the price of non-SJC gold moved in line with world gold prices, experiencing a slight decrease.

At PNJ company, the price of PNJ gold is currently trading at: 55.90 million VND/ounce – 56.90 million VND/ounce, a decrease of 100,000 VND/ounce in both buying and selling prices compared to the end of last week.

At Bao Tinh Minh Chau, the price of Thang Long gold closed the week at: 56.13 million VND/ounce – 56.98 million VND/ounce.

After one week of trading, Thang Long gold resulted in a loss of 830,000 VND per tael for buyers. PNJ gold suffered a loss of 1.1 million VND per tael.

Notably, while SJC gold prices have increased significantly, the metal continues to cause losses for investors. If someone bought SJC gold last weekend and sold it this weekend, they would lose approximately 400,000 VND per ounce.

Source: https://www.congluan.vn/vang-sjc-ngao-gia-post261127.html