The reason gold prices increased sharply again was because investors' confidence in the US Federal Reserve (Fed) was shaken, due to President Donald Trump's sudden dismissal of a member of the Fed's Board of Governors.
International gold price increases, SJC gold price sets new peak after monopoly is removed |
This is in contrast to the market's previous expectations that the Fed will cut interest rates in September 2025. According to the CME FedWatch tool, investors are betting on an over 87% chance that the Fed will cut interest rates by 0.25 percentage points at its September 2025 meeting.
However, earlier, Fed Chairman Jerome Powell left open the possibility of cutting interest rates in September 2025. In his speech, Mr. Powell emphasized the dual risks to the economy when inflation increases while economic activity slows, but he also pointed out that there is still room to loosen monetary policy.
New data released showed that US durable goods orders fell 2.8% in July, lower than the forecast of a 4% drop and the 9.4% drop in June. The market is now waiting for US GDP data to be released on Thursday and the personal consumption expenditure (PCE) index on August 29.
Gold jumped amid the weakening health of the US dollar after President Donald Trump's surprise move to fire Fed Governor Lisa Cook, causing investors to worry. The USD Index (DXY), a measure of the greenback's strength against other major currencies, fell slightly to more than 98 points this morning.
Facing the heat of international gold, the domestic SJC gold bar price this morning officially reached its highest level ever at 128 million VND/tael for selling and 126 million VND/tael for buying, an increase of about 300,000 VND/tael compared to yesterday. The margin between buying and selling prices was widened by gold traders to 2 million VND.
Even the price of SJC gold of 1-5 chi has officially exceeded 128 million VND/tael when listed at 126-128.03 million VND/tael (buy-sell). The price of 4-number 9 gold rings at SJC also increased from 200,000 - 300,000 VND, bringing the buying price to 119.9 million VND, selling at 122.4 million VND.
With the world gold price converted to the bank USD price this morning at over 109.2 million VND/tael, including taxes and fees, about 19 million VND/tael lower than the domestic gold price. The domestic gold price continues to increase compared to the world gold price even when the Government has just issued Decree 232/2025 to abolish the State monopoly mechanism on the production of gold bars and the import and export of raw gold for the production of gold bars.
Specifically, the Decree supplements Article 11a detailing the conditions for granting a license to produce gold bars. Accordingly, enterprises are considered for a license when they have a license to trade in gold bars, a charter capital of VND 1,000 billion or more, have not been administratively sanctioned in gold trading activities or have fully remedied violations. Enterprises must also have internal regulations on the process of importing raw materials, producing, monitoring and controlling product quality.
For commercial banks, the licensing conditions are having a license to trade in gold bars, charter capital of 50,000 billion VND or more, no administrative violations or having fully remedied them, and having internal regulations on gold bar production similar to the enterprise. The licensing documents and procedures will be prescribed by the Governor of the State Bank.
On the morning of August 27, the central exchange rate was maintained by the State Bank at 25,273, unchanged from yesterday. Meanwhile, the USD price at Vietcombank increased by 6 VND when buying by transfer to 26,176 VND/USD, selling at 26,536 VND/USD.
Source: https://baodautu.vn/vang-quoc-te-bat-tang-gia-vang-sjc-lap-dinh-moi-d372118.html
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