After a sharp week of decline, the world gold price started a new trading week in a slight uptrend, bringing the domestic gold price this morning (11/11) inched up. Analysts say that this precious metal price is facing great downward pressure.
On 11/11, Bao Tin Minh Chau Company listed SJC gold price for the Hanoi market at 41.38 million dongs/ tael (bought in) and 41.56 million dongs/ tael (sold). In the Ho Chi Minh City market, SJC Company quotes gold bars of the same brand at 41.3 million dongs/ tael and 41.56 million dongs/ tael, respectively buying and selling price.
Compared to the end of the week, the gold price currently increases by 20,000-30,000 VND / tael.
Last week, the gold bar price dropped by about 700,000 dong/tael because the world gold price dropped strongly. However, this reduction reflects only part of the reduction of more than 3% of the international gold price.
On 11/11, the SJC retail gold price stood higher than the world gold price, converted nearly 700,000 VND / tael, from a negligible difference at the beginning of last week. Currently, the gold price is at the lowest level for more than 1 month.
Some big gold shops in Hanoi said that people sold more gold than they have bought in recent days due to fears that prices may plummet. Most gold sellers at the moment are gold buyers at the beginning of the year, while buyers are those who want long-term holdings. Most transactions are small, almost no customers buying and selling in bulk.
Prices of other 999.9 gold products this morning increased slightly or moved sideways compared to the end of the week.
The Thang Long Dragon Circle Ring of Bao Tin Minh Chau has the buying price of VND 41.31 million / tael and the selling price of VND 41.76 million / tael. Phu Quy ring of Phu Quy Group is priced at VND 41 million / tael and VND 41.5 million / tael.
The free USD price in Hanoi maintained at VND 23,180 (bought in) and VND 23,200-23,205 (sold). Vietcombank kept the USD quote at VND 23,140 and VND 23,260, both buying and selling.
In the international market, spot gold price at nearly 11 is Vietnam time stood at 1,462.5 USD / oz, up 2.7 USD / oz compared to last week's close in New York.
Last week, the world gold price decreased by 3.2%, marking the sharpest decline in 2 and a half years. Currently, the world gold price is at the bottom of 3 months and equivalent to less than VND 40.9 million / tael.
International gold prices are under strong downward pressure from the rise of global stock markets. Investors bought stocks strongly based on expectations that the US and China were about to sign a trade agreement. Also, the appreciation of the USD put downward pressure on gold.
"We are witnessing the rise of more risky assets. The dollar has risen and the US stock market has reached an all-time high. There have been many speculative gold bull states set over the past few months, and now it's time for us to see those positions begin to close, "said TD Securities strategist Ryan McKay.
Last weekend, the USD exchange rate against a basket of 6 other key currencies reached a 3-week high. In the morning session of the first week in Asia, Dollar Index reached 98.36 points.
Despite optimism about US-China trade negotiations, global investors are still doubtful about the possibility of an early agreement between the two sides. "There is a lot of speculation affecting the transactions. There is no concrete evidence or anything clear," Oanda strategist Craig Erlam told CNBC.
According to Mr. Erlam, if the US-China phase 1 trade agreement was signed in December, the world gold price could drop to 1,440 USD / oz.