In the announcement on June 4, the State Bank of Vietnam directly sold gold to 6 commercial banks with state capital and Saigon Jewelry Company (SJC) for 4 million VND/tael.
At this price, banks and SJC sell gold to people at a price of 78,98 million VND/tael, higher than the purchase price of 1 million VND/tael. This difference is essentially to compensate for selling costs and banks previously declared that selling gold through this channel was not for profit.
Compared to June 3, the selling price at 6 banks has decreased by 4 million VND/tael. In the past 1 days, each amount of gold bars has decreased by 7 million VND, equivalent to an adjustment of more than 11%.
Thus, it can be seen that the "fever-reducing medicine" of the State Bank, as former Acting Chairman of the National Financial Supervisory Commission Truong Van Phuoc said, "has initially been effective".
Through observations at the gold selling points of commercial banks and SJC, not all gold selling points attract a large number of customers to buy gold. In particular, customers who could not buy gold the day before and left their information and registration were given priority to resolve their purchase needs in advance.
It is worth mentioning that many people came to look at the price list and saw the price drop so they seemed hesitant and considered not buying.
Mr. Nguyen Hai Dang, Hoan Kiem District, Hanoi said: "I see the trend of gold prices decreasing, perhaps in just a few days the gap between domestic and world prices will continue to narrow. Gradually, domestic prices will increase and decrease according to world prices. Now, the supply is quite abundant and transactions are convenient, so I will choose a more suitable time to buy."
According to the assessment of Dr. Le Xuan Nghia, Member of the National Financial and Monetary Policy Advisory Council, world gold prices have reached their peak for quite a long time due to concerns about the US Federal Reserve. (Fed) does not reduce interest rates, at least from now until September.
However, recently, there have been signs that US inflation is falling faster thanks to the impact of lower fuel prices, along with clear signs of economic recovery.
Concerns about the US maintaining high interest rates until the end of the year are no longer there and expectations are that interest rates will be reduced in the fourth quarter of this year and the USD will then depreciate. This will lead to gold prices increasing, but it will be difficult to reach the peak it has reached in the medium term and financial cash flows will be directed to other investments, not seeking refuge in gold anymore.
The domestic gold price depends greatly on the supply of the State Bank, because currently the State Bank is still the exclusive authority to import gold. This supply is quite strong, the amount of imported gold to meet domestic demand is only about 20-30 tons/year, according to statistics from the World Gold Council, equivalent to about 2,5-3 billion USD, a block of gold. The amount is very small compared to Vietnam's current import turnover of approximately 200 billion USD and compared to the State Bank's foreign currency reserves of 100 billion USD.
Downward trend?
Dr. Le Xuan Nghia acknowledged that the downward trend in gold prices in the medium term is very clear. This is something that investors and especially speculators in the gold sector pay close attention to. Currently, Vietnam's inflation is quite low, the currency is quite stable and investment opportunities in some asset markets are also recovering quite strongly. For example, the stock and real estate markets, especially when laws such as the Housing Law, Real Estate Business Law, and Land Law are about to take effect.
People and investors doing business in the gold market need to pay attention to their business as the gold price trend is gradually decreasing, the international and domestic price difference will narrow.
"It's clear that those who have rushed to buy gold recently, especially yesterday, have made losses and the loss is likely to get bigger if they continue to rush into this market to speculate," Mr. Nghia warned. At the same time, note that in recent months, the speculative factor has decreased, as evidenced by the fact that savings deposits of the residential sector in commercial banks have shown signs of increasing again although corporate deposits still remain. continue to decrease.
“Investors and speculators in the financial market need to review their investment portfolios in the direction of economic recovery, the stock market and real estate market will warm again, and the gold market price will continue. decreased", Dr. Le Xuan Nghia added.
Talking to the press on the afternoon of June 4, Mr. Dao Xuan Tuan - Director of the Foreign Exchange Management Department, State Bank of Vietnam - said: "Narrowing the difference between the domestic selling price of SJC gold bars and the international price leads to the Gold of state-owned commercial banks and SJC may further decrease in the near future. Therefore, people also need to be very careful when buying gold in the current context of fluctuating world gold prices."
Sources: https://vietnamnet.vn/muc-chenh-gia-vang-giam-nhanh-mua-som-cang-lo-2287922.html
