Why did the price of SJC gold bars suddenly hit a new peak?

On the afternoon of August 14, the price of SJC gold bars continued to be traded at a historical peak, when businesses listed the price of gold bars at 123.5 million VND/tael for buying and 124.7 million VND/tael for selling, an increase of 800,000 VND per tael compared to yesterday.

The price of 99.99% gold rings and jewelry gold is being traded at 117.1 million VND/tael for buying and 119.6 million VND/tael for selling, an increase of 600,000 VND per tael compared to yesterday.

With this development, the price of SJC gold bars is at a historical peak. An unexpected development is that the price of SJC gold bars increases rapidly - decreases slowly and the gap with the world price is increasingly widening. For example, at 4:00 p.m. this afternoon, Vietnam time, the world gold price was traded at 3,351 USD/ounce, down 15 USD/ounce compared to the morning session - but the price of SJC gold bars remained unchanged.

This caused the price difference between SJC gold bars and the world to widen to 17.8 million VND/tael.

SJC gold bar price "surged", going against the world price trend

Talking to a reporter from Nguoi Lao Dong Newspaper, gold expert Tran Duy Phuong said that the strange fluctuations in the world gold price are mainly due to the scarce supply of SJC gold bars. Since the end of last year, the State Bank has stopped selling gold for stabilization to 4 large commercial banks and SJC company, causing the supply to decrease sharply.

"The price of SJC gold bars is mainly determined by domestic supply and demand. Those who own gold are not in a hurry to sell it when the price is high, while the buying power of SJC gold is always high, leading to an unusually high price, regardless of world trends," said Mr. Tran Duy Phuong.

Vì sao giá vàng miếng SJC bất ngờ lập đỉnh mới?- Ảnh 2. — SJC gold bar price increased shockingly, reaching the highest peak ever

Economist , Dr. Nguyen Tri Hieu also said that in the Vietnamese market, domestic gold prices are not only affected by world prices but also face great challenges from domestic supply and demand. The Government is in the process of reviewing and amending Decree 24/2012/ND-CP on gold market management. The progress of the amendment is slow and needs to be accelerated. The domestic gold market is not connected with the world, and the supply is limited. It is the scarcity of supply that has pushed domestic gold prices up sharply, even though world gold prices sometimes decrease.

World gold price unlikely to break out in short term

Over the past two months, the world gold price has been trading around 3,250 - 3,450 USD/ounce. Although there have been increases, the general trend is still downward. The world gold price has not been able to break out because the US tariff policy has positive signals on trade negotiations, causing the price to decrease, while the move to impose high taxes has caused the price to increase.

"Currently, the US tariff policy has completed 85-90% of the negotiation process with major partners. The market is expecting the FED to cut interest rates from now until the end of the year, but this expectation has largely been reflected in prices in the past time. In the short term, gold prices will hardly create a strong boost in the near future" - Mr. Phuong predicted.

Vì sao giá vàng miếng SJC bất ngờ lập đỉnh mới?- Ảnh 3. — Gold bar prices continue to rise despite stable world prices over the past several weeks.

In the context of gold prices continuously remaining at the peak, many people and investors are wondering whether they should buy gold at this time?

Dr. Nguyen Tri Hieu believes that investing in gold, especially at its peak, needs to be oriented towards the medium to long term, because if you surf in a context of strong fluctuations, the risk is very high. Holding it for the long term will be more suitable to the nature of gold as a defensive asset, with low risk.

"Investors should monitor factors such as global geopolitical tensions, the FED's interest rate policy, exchange rate fluctuations and inflation... which directly affect gold prices," said Dr. Hieu.