The domestic gold price is still 18 million dong/tael higher than the world, is it risky to jump on the “golden wave” at this time?

Gold price still “stands” at the price of 70 million VND/tael

The world gold price is fluctuating up and down continuously. However, the domestic gold price is still fluctuating around 70 million VND/tael.

Specifically, at 2pm this afternoon (May 6), Doji Jewelry Company listed the price of SJC gold bars in the Hanoi market at VND 69.5 – 70.15 million/tael, down VND 150,000/tael and 200,000 VND/tael in both buying and selling directions.

Meanwhile, in Ho Chi Minh City market, Doji Saigon listed at 69.5-70.2 million dong/tael, down by 100,000 dong/tael and 200,000 dong/tael in both buying and selling directions.

Phu Quy gold and silver company listed the gold price at 69.5 – 70.15 million VND/tael. This price decreased by 200,000 VND/tael in the buying side and 220,000 VND/tael in the selling side compared to the previous session.

As for SJC Gold Company, in the Ho Chi Minh City market, the gold price is listed at 69.55 – 70.25 million VND/tael, down 100,000 VND/tael in both buying and selling directions.

In the Hanoi market, the gold price is listed at 69.55 – 70.27 million VND/tael, also down by 100,000 VND/tael in both buying and selling directions.

The world gold price updated at 16:00 this afternoon is standing at the level of 1,881.5 USD/ounce, tending to increase compared to the opening price this morning. Thus, at the current exchange rate, the world gold price is about 51.9 million dong/tael (excluding taxes and fees), about 18.1 million dong/tael lower than the domestic gold price.

Jumping “golden wave” beware… “underground collapse”

Mr. Truong Hien Phuong – Senior Director of KIS Vietnam Securities said that when there are any fluctuations in the market, people always think of gold as a safe haven. So in any crisis the price of gold goes up and this is a very normal psychology of investors.

However, according to this expert, in the present time, when investors see that the price of gold has gone up to buy, this “shelter” can be dangerous, even “collapse” later.

Explaining this point of view, Mr. Phuong said that the world reacted early to the rising price of gold, that is when the price of gold increased from more than 50 million dong/tael to 74-75 million dong/tael. It can be seen that the gold price has gone too far, up more than 50% already.

Firstly, with the world gold speculators, they also sell to take profit and let go because if the gold price is pushed higher, the number of investors participating in the market will be less. When it is no longer profitable, world investors will sell gold. Meanwhile, speculators and large gold traders in the country also behave similarly.

Second, the price of gold in the country is actually “undervalued, inflated” more. Because the domestic gold market is quite small and is in the hands of big gold traders. This is easy to see because the difference between domestic and international gold prices is very high.

“Especially, recently, this difference has become larger and larger, showing that the speculative factor, price blowing is more and more present. And in fact, this price push only stimulates some investors to rush in at this stage. At the beginning, when the gold price exceeded 70 million dong/tael, the buying volume gradually decreased, “- Mr. Phuong said.

Sharing more about the risk of inflation causing the demand to buy gold as a “haven” channel to increase again, Mr. Phuong said, this concern is not big.

“The fear of inflation is there, but it is not too severe. Currently, many people worry that inflation will occur because of cost-push, raw material costs, logistics increases… However, tools to control There is a lot of inflation, it may be to withdraw money from the State Bank, or the Government will use a fiscal policy, monetary policy to control and reduce inflation, “Mr. Phuong said.

“In short, the fear of inflation is there, but in fact gold speculators have relied on this inflation factor to push the gold price too far and they are no longer able to push this information up anymore, because forever Investors are also boring”, Mr. Phuong concluded.

Meanwhile, Mr. Pham Luu Hung, Deputy Director of SSI Securities Investment Advisory and Analysis Center also said that there are some investors who do not think about the increase in gold price. When the economic situation is difficult, like when it rains, you have to avoid it and this is normal.

However, according to Mr. Hung, now there are many other ways to avoid risks, so the increase in gold price will not affect much.

“In terms of macro policy, there will be no intervention on gold price at the moment because the influence of gold price on foreign exchange policy is very low,” added Mr. Hung.