In keeping with the downward trend in world gold prices after the US election results, domestic gold distributors decreased rates even as buyers flocked to buy gold yesterday. — Photo 24h.com.vn
In keeping with the downward trend in world gold prices after the US election results, domestic gold distributors decreased rates even as buyers flocked to buy gold on November 10.
At 12 noon, the selling price of gold at Sai Gon Jewellery Company Ltd (SJC) took a dive to VND36.53 million (US$1634) per tael (1.02 oz), a fall of VND450,000 ($20.12) compared to the last session.
Similarly, Phú Nhuận Jewellery JSC (PNJ) listed their selling price on the Ha Noi market at VND36.55 million per tael, a drop of VND250,000 ($11.18).
SJC selling gold price reached its lowest at about 3 pm at VND36.38 million ($1627) per tael. However it gradually recovered, clocking in at VND36.48 million ($1631) per tael at 4pm, with predictions of a further increase.
Officials at the Bao Tin Minh Chau Jewellery Co Ltd (BTMC) said more and more people are buying gold ever since the beginning of November 10 session, with almost 80 per cent of all transactions being purchases.
According to the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), the world gold price is on the rise again, with the current selling gold spot price at $1287.5. The currency exchange rate is VND22,355 per S1, so the current difference between the domestic and world prices is about VND2.1 million ($93.93) per tael.
Domestic gold purchases have shot up significantly because of the fear that the world gold price will shoot up on Thursday afternoon after president-elect Trump meets President Obama.
Representatives from PNJ said that under the pressure of rising purchases in the domestic gold market, distributors have had to adjust the difference between selling and buying prices. But the amount of buying customers was still on the rise, by almost 40 per cent more than usual.
On Wednesday, the world gold price fluctuated continuously based on the US election counting figures. As soon as Trump was announced winner, it touched $1.336 per oz, but took a deep dive to $1.272 per oz at the end of the session. The reason for such a dramatic drop is said to be the pressure on investors to take profits and the calming effect of Trump’s speech, which propelled dollars and the stock market up.
At this point, gold price is very elastic because of the fluctuating world market. Experts and seasoned investors suggest that arbitragers carry on business as usual, but closely watch market movement and be sensible in their decisions.
The market is also waiting for the US Federal Reserve System (FED) to decide its new interest rate, which could be postponed until Trump is sworn in. — VNS