HCMC – The local gold market became volatile today, December 26, making buyers stressful, as SJC gold dropped by a staggering VND2 million per tael early in the afternoon.
At the beginning of the day, Vietnam’s gold prices surged to an all-time high of over VND80 million per tael, up some VND2 million from the previous day. A tael equals 37.5 grams or 1.2 troy ounces.
During the morning session, Hanoi-based Doji Group quoted the yellow metal at VND79.35 million per tael for buying and VND80.35 million for selling, a respective increase of VND2.05 million and VND1.85 million against Monday. Meanwhile, SJC gold was bought and sold in HCMC at VND79.35 million and VND80.35 million per tael, respectively.
However, prices plunged in the afternoon. At 4:00 p.m., SJC-branded gold stood at VND79.2 million per tael for selling and VND77.4 million per tael for buying.
Doji Group then quoted SJC gold at VND77.2 million for buying and VND79.2 million for selling. Phu Quy SJC Company followed suit, buying at VND77.1 million and selling at VND79.1 million.
The buying price of Rong Thang Long gold at Bao Tin Minh Chau Jewelry was VND77.4 million per tael, while the selling price was VND79.1 million per tael.
While the domestic gold market exhibited volatility, global prices increased by US$12 per troy ounce to US$2,063. According to bank-listed exchange rates, the global gold price is equal to VND60.71 million per tael.
Analysts attribute the morning surge in SJC gold prices to 70% psychological factors and 30% defensive measures, the news site bnews.vn reported.
This is particularly evident due to low interest rates, with some banks offering rates below 2%. Truong Vi Tuan, an expert from the gold price website at giavang.net, said that low-interest rates reduce the opportunity cost of holding non-yielding assets, thus driving up gold prices.
State-run Vietcombank currently offers an interest rate of 1.9% per year for one- and two-month term deposits, which is the lowest on the market at the moment.
Addressing the psychological factors, the expert noted that the upcoming wedding season and God of Wealth Day contribute to increased demand, prompting businesses to maintain higher selling prices. Traditionally, people often buy gold as a safe haven and as a way to attract luck on God of Wealth Day, which falls on the 10th day of the Lunar New Year.
Meanwhile, Nguyen Huu Thuyet from Bao Tin Minh Chau Jewelry said that the increase in people’s income toward year-end stimulates appetite for buying gold. As interest rates in banks continue to decrease, and other investment channels like stocks and real estate remain subdued, gold emerges as a safe haven, leading to an increase in investment demand.
