At 9:50 a.m., the gold price at Doji was listed at 81.5 – 83.7 million VND/tael (buy – sell), down 500,000 – 300,000 VND/tael compared to early this morning.
At the same time, the gold price at SJC was listed at 81.5 – 83.8 million VND/tael (buy – sell), down 1 million VND/tael (buy) and 700,000 VND/tael (sell).
Domestic gold price today suddenly turned down sharply after a “hot” day of increase to about 1.5 million VND/tael from morning to late afternoon. Compared to the time before the first auction on April 23, the gold price has increased to the highest level of nearly 3 million VND/tael.
Many people believe that the domestic gold price is waiting for information about the results of the gold auction held this morning. Accordingly, the State Bank will sell 16,800 taels of gold. The State Bank said that this move is aimed at continuing to drastically implement the Prime Minister’s direction on implementing solutions to stabilize the gold market to handle the high difference between domestic and international gold bar prices. .
In the first auction, the State Bank of Vietnam sold 3,400 taels out of a total of 16,800 taels of gold bars offered by SJC, the winning price was more than 81.3 million VND/tael. However, only 11 businesses participated and 2 businesses won the bid. Previously, the State Bank planned to hold the bidding on the morning of April 22 but had to postpone it because there were not enough members to register to bid and transfer deposits according to regulations.
Experts say that the 3,400 taels of gold successfully auctioned are not enough to stabilize the domestic gold market. The State Bank needs to organize 2-3 more auctions to sell 10,000 – 15,000 taels to have enough impact on the gold market, helping to narrow the difference between domestic and world gold prices.
Domestic gold prices evaporated by millions of dong/tael. (Photo: Minh Duc).
On the world market, the gold price listed on Kitco is at 2,317 USD/ounce, down 5 USD/ounce compared to early yesterday morning.
Gold prices continue to fall as the market awaits important economic data to learn more about the policy direction of the US Federal Reserve (Fed).
Assessing recent gold fluctuations, market analyst Ole Hansen said that gold could return to levels between 2,255 and 2,260 USD/ounce.
Even so, Hansen remains bullish on gold in the long term. The factors behind the precious metal’s breakout rally remain the same, he added. Although geopolitical tensions have eased somewhat in recent days, they have not ended. Besides, central banks continue to add gold.
The market is also expected to see stronger demand from Chinese investors as they continue to look to the precious metal to hedge against stock market weakness and the devaluation of the yuan.
US gross domestic product (GDP) data and personal consumption expenditure (PCE) reports will be released on Thursday and Friday, respectively. Traders are now expecting the Fed’s first interest rate cut to take place in September.
Although gold may decline in the short term, experts still maintain optimism about this metal in the long term. According to Genesis Gold Group CEO Jonathan Rose, gold will rise even higher as a series of countries conduct elections this year, persistent conflicts and increasing US debt.
