Domestic gold price "climbs" to a record high, with no stopping point in sight

(Baohatinh.vn) - The upward fluctuation continued to be recorded in the price of SJC gold bars in this morning's trading session (August 28), pushing the selling price of this item to a new historical peak of 128.2 million VND/tael.

The price of each tael of SJC gold bar is now nearly 50 million VND more expensive than at the beginning of the year. Photo: Chi Hung.

On the morning of August 28, Saigon Jewelry Company (SJC) continued to raise the selling price of gold bars by 700,000 VND to 126.7 million VND/tael for buying and 200,000 VND to 128.2 million VND/tael for selling.

At the same time, other major domestic gold brands such as Phu Nhuan Jewelry Joint Stock Company (PNJ), DOJI Group, Phu Quy Group, Bao Tin Minh Chau, Bao Tin Manh Hai, Mi Hong Company... also quickly raised the selling price of gold bars to equal that of SJC, exceeding 128 million/tael.

Breaking all records

Notably, this continues to be the highest selling price in history for SJC gold bars. Compared to the beginning of August, each tael of gold bar has increased by more than 7 million VND, equivalent to a net increase of more than 5%. Compared to the beginning of the year, the domestic price of gold bars has increased by 45 million VND/tael, equivalent to a net increase of more than 53%.

This development was completely unexpected for investors. Previously, many people expected the price of SJC gold bars to drop sharply when the regulation on the State's monopoly on the production of SJC gold bars as well as the import of gold materials was removed. However, the downward trend did not appear even though the Government issued a new decree with many contents "unleashing" the gold market, allowing businesses and banks that meet a number of conditions to produce gold bars.

Explaining this, Dr. Nguyen Tuan Anh - Lecturer of Finance, RMIT University Vietnam said that in the short term, switching to a mechanism of granting permission to produce and trade gold bars could create a temporary shortage of supply because businesses have to prepare documents and wait for licenses, with a maximum time of 30 working days from the time valid documents are submitted.

Mr. Tuan Anh also assessed that the new policy could help reduce the domestic gold price, which is continuously reaching peaks, but not immediately because it depends on many factors. At the same time, the new policy does not guarantee an absolute price reduction if the world gold price continues to increase due to global inflation. In addition, the need to shelter from inflation in Vietnam and fluctuations in the USD/VND exchange rate could keep the price of gold bars at a high level.

The price of gold rings also climbed to a historical peak of 123 million/tael.

In addition to gold bars, the price of gold rings is also continuously setting new historical peaks. This morning, SJC raised the price of 99.99 gold rings, type 1-5, by only 200,000 VND, currently trading around 120.1 - 122.6 million VND/tael.

Most businesses such as PNJ, DOJI, Phu Quy... have also pulled the selling price of gold rings close to the peak of 123 million VND/tael.

Bao Tin Minh Chau and Bao Tin Manh Hai alone have fixed the selling price of gold rings at 123 million VND/tael, unchanged from the closing price of the previous session, but still the highest selling price in the market today.

Since the beginning of the year, the price of gold rings has increased by about 45%, and buyers have made a profit of nearly 40 million VND per tael since the beginning of the year.

Notably, in the world, the spot gold price is still on a downward trend, currently trading around 3,384 USD/ounce, which is about 11 USD lower (-0.33%) compared to the opening time of the trading session on the same day. Converted to Vietnamese currency (excluding taxes and fees), the international gold price is equivalent to 108 million VND/tael. This price is more than 20 million VND/tael lower than the domestic SJC gold bar price and about 15 million VND/tael lower than gold rings.

Source: https://baohatinh.vn/vang-trong-nuoc-leo-thang-ky-luc-chua-co-diem-dung-post294580.html