The domestic gold price increased by VND450,000 per tael this morning, far exceeding the threshold of VND53 million per tael compared to the end of the trading session on July 22, due to increasing pressure on world gold prices triggered by the coronavirus pandemic.
At the opening of the Hanoi market on the morning of July 23, the SJC gold price was listed at VND52.3 million per tael (bought in) and VND53.3 million per tael (sold). At the same time, in Ho Chi Minh City’s market, the SJC gold price was also intensely traded at VND52.38 million and VND53.38 million per tael.
However, this afternoon, gold prices in Vietnam and the world continued to rise sharply, reaching a new "peak". Currently, the SJC gold price is exceeding VND54 million per tael, with an increase of VND820,000-900,000 per tael in buying and about VND920,000 per tael in the selling, compared to the opening session in the morning.
The difference between the buying and selling prices is now at VND1.1 million per tael.
Previously, closing the trading session on July 22, the SJC gold price was at VND52.1 million per tael (bought in) and VND52.85 million per tael (sold). Many investors thought that this was the "peak" of gold prices, as compared to July 21 and 22, when the price of gold "escalated" up to VND2 million per tael.
On the world market, currently, the price is trading at around US$1,881.8 (equivalent to VND52.75 million) per oz, an increase of US$14/oz compared to the morning session.
Experts say that the world gold price will not stop at this threshold amid the complex developments of COVID-19, forcing countries to focus on containing the epidemic, instead of opening their doors for economic recovery.
The gold price is expected to climb to US$2,000 per ounce in the near future.
James O ’Rourke, commodities economist at Capital Economics, said that his firm now sees gold prices ending the year around US$1,900 an ounce, up from its previous target of US$1,600 an ounce.
World gold prices have increased sharply after the European Union reached an agreement on a bailout package worth EUR750 billion to revive the region’s economy amid the ongoing COVID-19 crisis.
As gold prices have fluctuated with a large amplitude in a short time, not only foreign investors, but also domestic ones have rushed to buy gold with the expectation that the price would continue to rise.
According to Nguyen Huu Thuyet, an expert at Bao Tin Minh Chau Jewelry Company, the price of gold is complicated and investors should consider it carefully before making a purchase or sale. They are advised to monitor the domestic market regularly and stay updated on the actual situation to make a decision. They should avoid "surfing" but making long-term investments, from at least from 3-6 months or more, Thuyet suggested.
Although investing in gold at this time can bring a great profit, experts have warned that this can also bring risk, as a sudden mass selloff would cause gold prices to drop sharply.
