Gold buyers are making many calculations amidst the sharp drop in gold prices - Photo: QUANG DINH
Domestically, the downward trend in gold prices is not outside the general trend, with SJC gold bars listed at 146.2 - 150.2 million VND/ounce (buying price - selling price).
World gold prices fell sharply, and domestic prices fell even more sharply.
Meanwhile, the buying price of plain gold rings from popular brands is around 146.2 million VND/ounce, and the selling price is 149.6 million VND/ounce. The gap between domestic and international gold prices has also narrowed, to just over 11 million VND, whereas at one point it had risen to over 20 million VND.
According to observations by Tuoi Tre newspaper at major gold trading businesses on June 6th, the gap between domestic and international gold prices has narrowed, now only slightly over 11 million VND, whereas at one point it had risen to over 20 million VND.
The sharp decline in domestic gold prices in recent days is attracting the attention of investors. On gold forums, many investors have expressed concern that the rate of adjustment in domestic gold prices is greater than the rate of decline in world gold prices.
Economist Dr. Le Ba Chi Nhan believes that the Vietnamese gold market is entering a correction phase after a long period of maintaining high prices, with a large difference compared to international prices. Domestic gold trading businesses tend to adjust prices more sharply to limit inventory risks and balance their business positions.
The widening of the spread between buying and selling prices from approximately 3 million VND/ounce to around 3-4 million VND/ounce also reflects businesses strengthening risk mitigation measures in the face of unpredictable market fluctuations.
According to Mr. Nguyen Quang Huy, CEO of the Finance and Banking Faculty at Nguyen Trai University, domestic gold prices have consistently remained significantly higher than the converted world gold price. "When the market adjusts, not only do world gold prices fall, but the difference in domestic prices also tends to narrow. Therefore, the decrease in domestic gold prices is usually stronger than the international trend," Mr. Huy explained.
Why is the price of gold falling so continuously?
According to experts, the recent decline in gold prices should be viewed in the context of a reassessment of global financial market expectations, rather than as a complete reversal of the fundamental factors supporting gold.
The most important factor right now is US monetary policy. The market is increasingly recognizing the likelihood that the Fed will maintain current interest rates for longer than expected, as inflation has yet to sustainably return to its target level. This makes yields on USD assets attractive, while increasing the opportunity cost of holding gold – an asset that does not generate cash flow or interest.
Expert Quang Huy believes that gold has experienced a very strong price increase cycle in recent years. After this period of rapid growth, profit-taking by investment funds, financial institutions, and individual investors is a normal market development.
Another factor to consider is that while the Russia-Ukraine conflict continues and the situation in the Middle East remains unstable, these risks no longer pose the same level of surprise as before. Financial markets tend to react more strongly to new events rather than to factors already largely reflected in prices.
Meanwhile, US-China trade tensions have shown signs of relatively easing following recent high-level diplomatic activities. This has contributed to improved market sentiment and somewhat reduced the demand for safe-haven assets.
What should investors do?
Gold selling price - Graphic: N.KH
Whenever the market is under pressure for a correction, the biggest question investors ask themselves is whether they should sell off or continue holding onto their losing positions.
Shaokai Fan, Regional Director for Asia Pacific (excluding China) and Global Central Bank Director at the World Gold Council (WGC), argues that buying and holding gold for the long term helps increase resilience and stabilize investment portfolios. While some investors may achieve short-term profits, the WGC does not recommend viewing gold as a short-term trading instrument.
"Geopolitics is projected to continue to be a key factor driving gold demand in 2026 and beyond. This supports the ongoing net buying trend by central banks, strong inflows into global gold ETFs, and demand for gold bullion and coins as store of value. High gold prices may continue to impact demand for gold jewelry, although purchasing power in this segment is expected to remain stable."
Discussing future gold price trends, gold expert Tran Duy Phuong said the market will focus on the Consumer Price Index (CPI) and US inflation data expected to be released next week. These are important data points that will help solidify assessments of whether the Fed will continue to raise interest rates from now until the end of the year.
According to Mr. Phuong, gold prices are often very sensitive to macroeconomic information. Therefore, whenever new data emerges that impacts expectations regarding the Fed's monetary policy, it is not uncommon for gold prices to fluctuate sharply, rising or falling by hundreds of USD per ounce in just one trading session.
Meanwhile, Mr. Huy predicted that in the short term, gold prices are likely to continue to fluctuate sharply due to the direct impact of the FED's interest rate policy, US inflation trends, the strength of the US dollar, and US government bond yields.
"If interest rates remain high for longer than expected, gold may continue to face downward pressure. However, that does not mean that the long-term outlook for gold is weakening," Huy added.
For investors intending to "buy the dip," it's crucial to avoid the mentality of deploying all capital at once. Allocating capital in stages will help minimize risk and improve adaptability to unpredictable market fluctuations.
More importantly, according to Mr. Huy, in the context of Vietnam promoting institutional reforms, developing the private sector, innovation, and aiming for high growth targets in the coming years, investors should approach it by diversifying their portfolios.
Source: https://tuoitre.vn/vi-sao-gia-vang-giam-sau-20260606231904368.htm
